In a press release dated February 10th Yum! Brands Inc. announced results for the 4th quarter and FY 2021 ending December 31st.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
|
4th Quarter Ending December 31st
|
2021
|
2020
|
Difference (%)
|
|
Revenue:
|
$1,890,000
|
$1,743,000
|
+8.4
|
|
Gross profit company units:
|
$102,000
|
$106,000
|
-3.8
|
|
Operating income:
|
$502,000
|
$482,000
|
+4.1
|
|
Pre-tax Income
Net Income
|
$407,000
$330,000
|
$352,000
$332,000
|
+15.6
-0.7
|
|
Diluted earnings per share:
|
$1.11
|
$1.08
|
+2.7
|
|
Gross Margin company units (%)
|
11.3
|
18.7
|
-39.6
|
|
Operating Margin (%)
|
26.5
|
27.7
|
-4.3
|
|
Profit Margin (%)
|
17.5
|
19.0
|
-7.9
|
|
Long-term Debt and lease obligations:
|
$12,924,000
|
$12,068,000
|
+7.1
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
21.1
|
|
|
|
Return on Equity (%)
|
N/A
|
|
|
|
Operating Margin (%)
|
32.8
|
|
|
|
Profit Margin (%)
|
24.5
|
|
|
|
Total Assets
|
$5,966,000
|
$5,852,000
|
+1.9
|
|
Intraday Market Capitalization
|
$37,430,000
|
|
|
FY 2021 Net Income of $1,575 million on total revenue of $6,584 million with a diluted EPS of $5.21
FY 2020 Net Income of $904 million on total revenue of $5,652 million with a diluted EPS of $2.94
For FY 2021:-
System wide: Sales +9.0%; Same-store sales growth 5%.
KFC Division: Sales $31,365 million; Operating margin 44.0%; Operating profit $1,230 million; 26,934 units.
Pizza Hut Division: Sales $12,955 million; Operating margin 37.7%; Operating profit $387 million; 18,381 units.
Taco Bell Division: Sales $13,280 million; Operating margin 34.3%; Operating profit $1,230 million; 7,791 units.
52-Week Range in Share Price: $101.94 to $139.85 50-day Moving average $129.75
Market close pre-release February 9th $124.99
Market open post-release February 10th $130.30
Forward P/E 25.6 Beta 1.1
In commenting on Q3 results, David Gibbs, CEO, said “We opened an astounding 4,180 gross units in 2021, marking the strongest growth year in Yum!'s history and setting a restaurant industry record for unit development. I’m confident and energized heading into 2022, which marks Yum!’s 25th anniversary, as we continue to build the world’s most loved and trusted brands while delivering lasting value for our stakeholders.”
Chris Turner, CFO, added “Our fiscal 2021 system sales growth of 13%, with 10% same store sales and 6% unit growth, illustrates the health of our global system – iconic Brands, capable, committed, and well-capitalized franchise partners and strong unit economics. During the quarter, system sales grew 9% including 5% same store sales growth, or 4% on a 2-year basis. We remain focused on fueling growth, with confidence in our Recipe for Growth and Good strategies, and delivering on our long-term growth algorithm in fiscal 2022 and beyond.”