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YUM NYSE· Yum Brands Inc
Earnings report Q4 2023

YUM! Brands Reports Steady Revenue Growth in Latest Quarter

Segments of revenue

YUM! Brands reported total revenues of $7.08 billion for the latest quarter. The company sales revenue amounted to $2.14 billion, while franchise and property revenues reached $3.25 billion. Additionally, franchise contributions for advertising and other services accounted for $1.69 billion of the total revenues.

Strengths

YUM! Brands demonstrated consistent revenue growth in the latest quarter. The company's total revenues increased by 3.4% compared to the same quarter last year. This growth can be attributed to the strong performance of both company sales and franchise revenues. YUM! Brands' ability to generate revenue from multiple sources, including franchise contributions, showcases the strength of its business model.

Challenges

While YUM! Brands experienced overall revenue growth, there were some challenges in the latest quarter. The company's operating profit increased by 6.1% compared to the previous year, but investment income declined. Additionally, the income tax provision increased by 46.6% compared to the same quarter last year, impacting the net income.

Noteworthy

It is worth noting that YUM! Brands operates on a fiscal year that begins on January 1 and ends on December 31. The company's subsidiaries, including its restaurants, are referred to as Company-owned, even though YUM! Brands does not directly own or operate these restaurants. Furthermore, YUM! Brands consolidates certain cooperatives for which it is the primary beneficiary due to voting rights.

Summary

YUM! Brands delivered a solid performance in the latest quarter, with steady revenue growth driven by strong company sales and franchise revenues. The company's ability to generate revenue from multiple sources, including franchise contributions, highlights the strength of its business model. However, challenges such as declining investment income and increased income tax provision impacted the overall financial performance. Overall, YUM! Brands' consistent revenue growth demonstrates its resilience in the competitive market.

Source documents

Form 10-K  filed on Feb 20, 2024
109 pages scanned

Reference data

Company financials Q4 revenue 2.04B
Analyst estimates Q4 EPS missed by -10.08%
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