Welcome to our dedicated page for Yum! Brands news (Ticker: YUM), a resource for investors and traders seeking the latest updates and insights on Yum! Brands stock.
Yum! Brands, Inc. (NYSE: YUM) is the world's largest restaurant company, boasting a portfolio that includes renowned brands such as KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. With over 39,000 restaurants in more than 130 countries and territories, Yum! Brands serves millions of customers globally and employs over 1 million associates.
Founded as a division of PepsiCo and formerly known as Tricon, Yum! Brands generates significant revenue primarily through franchise royalties and marketing contributions. This business model has proved successful, with the company achieving $64 billion in systemwide sales in 2023. Yum! Brands is 98% franchised, with Yum China, its largest franchisee, spun out in 2016. Despite this separation, Yum China continues to pay 3% royalties to Yum! Brands.
Yum! Brands is an industry leader in the fast-food sector, with KFC specializing in chicken, Pizza Hut in pizza, Taco Bell in Mexican-style food, and The Habit Burger Grill in burgers. The company is second in global sales, trailing only McDonald's but surpassing Restaurant Brands International and Starbucks. As of year-end 2023, KFC operated 29,900 units, Pizza Hut 19,866 units, Taco Bell 8,564 units, and The Habit Burger Grill 381 units.
Known for its unique corporate culture, Yum! Brands emphasizes fun, recognition, and career development. The company invests heavily in its workforce to maximize their career potential, creating a diverse and inclusive environment where employees can thrive both personally and professionally.
Yum! Brands is also at the forefront of technological innovation in the fast-food industry. Led by Joe Park, the Chief Digital and Technology Officer, the company is leveraging artificial intelligence to transform its operations across all brands. By 2024, about 45% of Yum!'s sales were digital, highlighting a significant shift from traditional sales channels.
On the product front, Yum! Brands continuously innovates to meet consumer demands. For example, Pizza Hut recently introduced the Cheeseburger Melt, a unique fusion of pizza and burger elements, while KFC launched new Saucy Nuggets flavors for a limited time. Taco Bell, through its Live Más Scholarship program, is also investing in the future success of young people by awarding $10 million in scholarships in 2024.
Yum! Brands is not just about food; it's about community engagement and social responsibility. The company is involved in numerous initiatives, such as KFC’s Add Hope program in South Africa, which supports children's education and well-being.
Overall, Yum! Brands, Inc. stands out for its extensive global reach, innovative approach to technology and food, and commitment to a positive workplace culture and community impact.
Yum! Brands announced a significant issuance of $2.25 billion in senior secured notes through its Taco Bell subsidiary. This includes $900 million of 1.946% notes, $600 million of 2.294% notes, and $750 million of 2.542% notes, with maturities extending to August 2051. Proceeds will repay earlier notes and fund corporate expenses, possibly including capital returns to shareholders. The offering is targeted at qualified institutional investors, adhering to the Securities Act, and is set to close on August 19, 2021.
Pizza Hut and Beyond Meat have expanded their partnership, introducing the Beyond Pepperoni pizza, a plant-based variant of Pizza Hut's popular topping. Available in nearly 70 locations across five U.S. markets, this innovative offering features simple ingredients like peas and rice, with no GMOs, soy, or gluten. The new pizza is designed to cater to the growing demand for plant-based options, appealing to health-conscious consumers. This collaboration reinforces Yum Brands' commitment to expanding plant-based menu options and enhancing customer choices.
YUM! Brands announced plans to refinance its Series 2016-1 Class A-2-II and Series 2018-1 Class A-2-I Fixed Rate Senior Secured Notes, which total approximately $2.853 billion. The refinancing will introduce $2 billion in New Notes, aimed at repaying existing notes, covering transaction expenses, supporting general corporate purposes, and potentially returning capital to shareholders. The New Notes will be available to qualified institutional buyers under the Securities Act but will remain unregistered. No assurance is provided regarding refinancing timing or completion.
Yum! Brands, Inc. reported strong second-quarter results for the period ending June 30, 2021, with worldwide system sales growth of 26% and same-store sales growth of 23%. GAAP EPS was $1.29, up 91% year-over-year, while EPS excluding Special Items increased by 41% to $1.16. KFC led with a 35% same-store sales growth, followed by Taco Bell at 24% and Pizza Hut at 10%. The company opened 603 new units globally and revised its long-term unit growth target to between 4% and 5%. Positive trends in digital sales and international expansion supported this performance.
Pizza Hut launched its first-ever limited edition capsule collection called Pizza Hut Tastewear, inspired by classic brand elements. The collection features streetwear items like track suits and slides, priced from $9.99 to $99.99. Available online at PizzaHutShop.com, the launch is part of Pizza Hut's Newstalgia campaign aimed at modernizing beloved aspects of the brand.
The collection includes items celebrating the iconic red roof and checkered tablecloths, with hopes of connecting with pizza enthusiasts nationwide.
KFC is partnering with Big Brothers Big Sisters of America (BBBSA) to strengthen mentoring relationships. The company is donating $275,000 to provide meals for 5,000 mentors and youth this summer. KFC's contribution includes $175,000 in meals and $100,000 for workforce mentoring programs, enhancing youth career opportunities. This initiative aligns with BBBSA's mission to support positive youth outcomes, having assisted over 2 million youth in the past decade. The program aims to foster connections and empower young people through mentorship.
Yum! Brands recently announced the release of R.E.D. Marketing: The Three Ingredients of Leading Brands, authored by CMO Ken Muench and former CEO Greg Creed. This book outlines the R.E.D. Marketing principles - Relevance, Ease, and Distinctiveness - which have driven sales growth for Yum!'s brands like KFC and Taco Bell globally. The authors emphasize the importance of a cohesive marketing strategy, especially post-pandemic. All profits from the book will be donated to The Yum! Brands Foundation, supporting community initiatives.
Pizza Hut, a subsidiary of Yum! Brands, reintroduces the iconic Edge® pizza, featuring a thin crust loaded with toppings, just in time for summer. The Edge, first launched in 1997, utilizes Thin 'N Crispy® dough and is now available in four recipes: The Ultimate, The Carnivore, The Vegetarian, and Pepperoni Lover's®, priced at $12.99 each for a limited time. Customers can order via contactless delivery, carryout, and more. With nearly 18,000 locations globally, Pizza Hut continues to lead in the pizza industry while ensuring a safe dining experience.
Yum! Brands has entered into a binding agreement to acquire Dragontail Systems for A$93.5 million. This acquisition aims to integrate Dragontail’s AI kitchen order management technology into Yum’s operations, enhancing delivery capabilities, particularly at Pizza Hut. Dragontail’s platform is already utilized in nearly 1,500 Pizza Hut locations across 10 countries. The acquisition, intended to close by Q3 2021, is expected to have an immaterial impact on Yum's 2021 financial results, pending regulatory approvals.
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