On February 8^th, YUM! Brands (YUM) reported on Q4 and FY 2022, ending December 31^st 2022. For the period, the company posted net earnings of $371 million on revenue of $2,019 million with a diluted EPS of $1.29.  Comparative values for Q4 of fiscal 2021 were net earnings of $293 million on revenue of $1,890 million with a diluted EPS of $1.11.

For FY 2022, the company posted net earnings of $1,325 million on revenue of $6,842 million with a diluted EPS of $4.57.  Comparative values for FY 2021 were net earnings $1,575 million on revenue of $6,584 million with a diluted EPS of $5.21.

For the quarter. worldwide same-store sales growth attained 6 percent with systemwide sales growth attaining 8 percent

Division performance for Q4 included:-

• The KFC Division comprising 27,760 restaurants posted a five percent growth in same-store sales; system-wide sales of $8,307 million and company revenue and franchise fees combining to $450 million.  The KFC division generated an operating profit of $310 million achieving an operating margin of 39.0 percent.
• The Pizza Hut division comprising 19,034 restaurants achieved a one percent growth in same-store sales.  System-wide sales amounted to $3,508 million with company revenue and franchise fees of $169 million.  The Pizza Hut Division generated an operating profit of $100 million and attained an operating margin of 34.5 percent.
• The Taco Bell division comprising 8,218 restaurants posted an eleven percent increase in same-store sales with system wide revenue of $4,619 million.  Revenue from company stores, franchise fees and other incoming including advertising amounted to $263 million with an operating profit of $246 million attaining an operating margin of 32.1 percent.

In commenting on results David Gibbs, CEO stated, “2022 was a landmark year for Yum! as we beat our own industry record for unit development, opening an incredible 4,560 new units. Despite a challenging environment, we achieved widespread system sales growth of 8 percent excluding Russia with $24 billion in digital sales, demonstrating that our iconic brands are more relevant, easy and distinctive than ever. I’m confident that our distinct competitive advantages including our world-class franchisees and the industry’s best talent will drive accelerated growth in the future.”

Chris Turner, CFO, said “Our fiscal 2022 results delivered on our raised long-term growth algorithm with record-setting net new unit growth and 4 percent same-store sales growth. Despite inflationary pressures and a 2-point negative impact from Russia, we delivered 6 percent Core Operating Profit growth – a testament to the strength of our enterprise. We remain focused on executing the strategies underlying our Recipe for Good Growth to drive our business forward.”

On December 31^st 2022 Yum Brands posted total assets of $5,846 million including goodwill and intangibles of $992 million against long-term debt of $11,453 million. Yum Brands! had a market capitalization of $36,120 million on February 8^th 2023.  The share has traded over the past 52 weeks in a range of $103.97 to $132.87 with a 50-day moving average of $128.85.  On a trailing 12-month basis, operating margin was 31.2 percent and profit margin 19.1 percent with a return on assets of 21.4 percent.  YUM! is held primarily by institutions that collectively hold 80.5 percent of equity.