Financial Data and Key Metrics Changes - In Q4, the company achieved a 5% growth in system sales, driven by 3% unit growth and 3% same-store sales growth [19] - Digital sales reached over $11 billion, growing 25% year-over-year, raising the digital mix to nearly 60% [20] - For the full year, system sales grew 5%, with Taco Bell at 8% and KFC at 6% [20] - Q4 core operating profit grew 11%, with ex-special EPS at $1.73 [22] - Full-year Yum ex-special EPS was $6.05, up 10% [22] Business Line Data and Key Metrics Changes - Taco Bell delivered 7% same-store sales growth, while KFC achieved 6% system sales growth [4][11] - Taco Bell U.S. restaurant-level margins expanded to 25.7%, while KFC's margins were at 12.7% [21] - KFC opened over 1,100 units in Q4 and nearly 3,000 units for the year, marking record unit growth [22][23] - Taco Bell opened 228 new units in Q4, with a target of reaching at least 10,000 units in North America [26] Market Data and Key Metrics Changes - KFC saw strong performance in the UK, with a 10% increase in same-store sales in Q4 [11] - Taco Bell International achieved 5% same-store sales growth, with standout performance in Canada, the U.K., and Spain [16] - Pizza Hut experienced a 1% same-store sales decline globally, but saw growth in Pizza Hut International [30] Company Strategy and Development Direction - The company aims to raise the bar with three core priorities: enhancing average unit volumes, improving restaurant-level economics for franchisees, and leveraging technology through Byte [8] - Taco Bell has set ambitious goals for 2030, including reaching approximately $3 million in U.S. average unit volume and expanding to 3,000 international stores [9] - The company is focused on digital capabilities, with digital sales growing significantly and expected to drive nearly one-quarter of Taco Bell's average unit volume growth in 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the ability to exceed long-term growth algorithms, particularly in Taco Bell and KFC [39][43] - The strategic review of Pizza Hut is progressing, with expectations for strong gross openings globally despite targeted closures of underperforming units [32][36] - Management emphasized the importance of franchise partnerships and the potential for growth in underpenetrated markets like India and Brazil [24][25] Other Important Information - The company returned approximately $1.35 billion to shareholders in 2025 through dividends and share buybacks [33] - The capital priorities include maximizing shareholder value, maintaining a strong balance sheet, and returning excess cash to shareholders [33] Q&A Session Summary Question: Opportunities to accelerate growth in Taco Bell and KFC - Management highlighted strong momentum in both brands, with KFC achieving record unit openings and Taco Bell maintaining strong same-store sales growth [39] Question: KFC global development and franchise revenue - Management discussed the focus on improving paybacks in various markets and the potential for higher franchise revenue as unit growth accelerates [46] Question: Unit development growth rates for Taco Bell and KFC - Management expressed confidence in maintaining or accelerating unit development growth rates, particularly in KFC and Taco Bell [50][52] Question: Taco Bell's comp growth and demographics - Management noted strong transaction growth across all income bands, with increased penetration among higher-income consumers and families [57] Question: Byte initiative adoption and technology-related G&A - Management confirmed high penetration of Byte in the U.S. and plans for further international expansion, while also managing technology investments prudently [62][64] Question: Future of Pizza Hut and long-term growth potential - Management emphasized the focus on driving performance across all brands while completing the strategic review of Pizza Hut [71][72]

Financial Data and Key Metrics Changes - In Q4, Yum! Brands achieved a 5% growth in system sales, driven by 3% unit growth and 3% same-store sales growth [18] - Digital sales reached over $11 billion, growing 25% year-over-year, with digital mix increasing by 9 points to nearly 60% [18] - For the full year, core operating profit grew 7%, with an increase of 10% excluding the Pizza Hut division [20] Business Line Data and Key Metrics Changes - Taco Bell reported a 7% same-store sales growth, outperforming the QSR industry, and achieved 10% core operating profit growth [4] - KFC delivered 6% system sales growth and a 10% core operating profit increase, with significant growth in the UK and Middle East markets [11] - Taco Bell U.S. achieved restaurant-level margins of 25.7%, while KFC's margins were 12.7% in Q4, reflecting improvements in both brands [19] Market Data and Key Metrics Changes - Taco Bell International saw 5% same-store sales growth, with notable performance in Canada, the U.K., and Spain [15] - KFC's largest equity estate, the UK, experienced a 10% increase in same-store sales in Q4 [11] - Pizza Hut International reported a 1% same-store sales increase, with strength in the Middle East, Latin America, and Asia [29] Company Strategy and Development Direction - The company aims to raise the bar with three core priorities: enhancing average unit volumes, improving restaurant-level economics for franchisees, and maximizing the potential of the Byte technology platform [8][9] - Taco Bell has set ambitious goals for 2030, including reaching approximately $3 million in U.S. average unit volume and expanding to 3,000 international stores [9] - The strategic review of Pizza Hut is ongoing, with a focus on strengthening near-term results and aligning stakeholders on a targeted program [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum heading into 2026, highlighting strong paybacks and unit development in KFC and Taco Bell [37][41] - The company is focused on leveraging its scale and technology to enhance franchisee profitability and drive growth [46][70] - Management emphasized the importance of maintaining relevance with consumers and improving restaurant economics as key drivers for future growth [70] Other Important Information - The company opened over 1,800 new units in Q4 and more than 4,550 new units for the year, with KFC leading unit growth [21] - Yum! Brands returned approximately $1.35 billion to shareholders in 2025 through dividends and share buybacks [31] - The company is committed to expanding access to education and employment opportunities, impacting over 400,000 people in the past year [17] Q&A Session Summary Question: Opportunities to accelerate growth in Taco Bell and KFC - Management highlighted strong momentum in both brands, with record unit openings in KFC and continued same-store sales growth in Taco Bell [37][38] Question: KFC global development and franchise revenue - Management reassured that KFC is focused on improving paybacks and unlocking growth in under-penetrated markets, with a strong emphasis on franchisee profitability [45][46] Question: Taco Bell's comp growth and demographics - Taco Bell's growth was driven by increased transaction frequency across various demographics, including higher-income consumers and families [53][55] Question: Byte initiative adoption and international expansion - Management confirmed that Byte is actively used in the U.S. and plans to expand its deployment internationally, focusing on thoughtful implementation [58][64] Question: Future of Pizza Hut and unit closures - Management indicated that the strategic review of Pizza Hut is ongoing, with targeted closures planned as part of the Hut Forward program [75]

Core Insights - Yum Brands reported a widening performance gap across its restaurant portfolio in the final quarter of the year, indicating varying levels of demand and growth among its brands [1] Group 1: Brand Performance - Taco Bell experienced strong demand, contributing positively to Yum Brands' overall performance [1] - KFC showed steady international growth, further supporting the company's revenue [1]

Core Insights - Yum Brands reported an increase in revenue for its latest quarter, driven by growth in its Taco Bell and KFC segments [1] Group 1: Financial Performance - The company experienced higher revenue in the latest quarter, indicating positive financial performance [1]

Core Insights - Yum Brands reported mixed quarterly results for the period ended December 31, with a net income of $535 million, or $1.91 per share, an increase from $423 million, or $1.49 per share, a year earlier [1] - The company's net revenue rose by 6% to $2.51 billion, with global same-store sales increasing by 3% [2] Taco Bell Performance - Taco Bell's same-store sales surged by 7% in the quarter, exceeding Wall Street expectations of 5.6% growth, highlighting its strong demand and performance [2] - The chain is recognized as a key asset in Yum's portfolio, consistently outperforming the broader fast-food industry due to its value offerings and innovative menu items [3] KFC Performance - KFC's global same-store sales increased by 3%, with international locations showing the same growth, while U.S. locations reported a modest 1% increase [3] - Analysts had anticipated KFC to achieve a same-store sales growth of 2.1%, indicating a stronger performance than expected [4] Pizza Hut Challenges - Pizza Hut reported a decline in same-store sales of 1%, driven by a 3% drop in the U.S., slightly better than Wall Street's estimate of a 1.7% decline [4] - Yum Brands announced in November that it would explore strategic options for Pizza Hut, with a review process currently underway [5] Financial Metrics - Adjusted earnings per share were reported at $1.73, slightly below the expected $1.77, while revenue of $2.51 billion surpassed expectations of $2.45 billion [6]

Financial Performance - Fourth-quarter GAAP EPS was $1.91, a 28% increase from $1.49 in the previous year, while full-year GAAP EPS was $5.55, up 6% from $5.22[4] - Company sales for Q4 2025 reached $971 million, a 10% increase from $885 million in Q4 2024[31] - Total revenues for the year ended December 31, 2025, were $8,214 million, reflecting a 9% growth compared to $7,549 million in 2024[31] - Net income for Q4 2025 was $535 million, up 27% from $423 million in Q4 2024[31] - Operating profit for the year ended December 31, 2025, was $2,574 million, a 7% increase from $2,403 million in 2024[31] - Net income for the year ended December 31, 2025, was $1,559 million, up from $1,486 million in 2024, representing a growth of 5%[48] - GAAP Operating Profit for the quarter ended December 31, 2025, was $738 million, an increase from $657 million in the same quarter of 2024, representing a 12.3% growth[57] - GAAP Net Income for the year ended December 31, 2025, reached $1,559 million, up from $1,486 million in 2024, marking a 4.9% increase[58] - For the year ended December 31, 2025, consolidated total revenues reached $8,214 million, an increase from $7,549 million in 2024, representing an 8.8% growth[66] Sales Growth - Taco Bell achieved same-store sales growth of 7% in Q4 and 7% for the full year, while KFC reported 3% same-store sales growth in Q4 and 3% for the full year[7][8] - KFC's worldwide system sales grew 6% in 2025, while Taco Bell's system sales grew 8%, both excluding foreign currency translation[9][10] - The Pizza Hut division experienced a decline in same-store sales of 1% in Q4 and 3% for the full year, with a total of 443 new restaurants opened during the year[17][20] Unit Growth and Expansion - The company opened 1,814 gross units in 2025, leading to a 3% year-over-year unit growth, with KFC opening 1,132 new restaurants in Q4 and 2,986 for the year[9][11] - The Habit Burger Grill Division opened 11 new restaurants in Q4 2025, totaling 21 for the year[22] - Taco Bell secured the No. 1 spot in North America for the fifth consecutive year in Entrepreneur's Top Global Franchises 2024 list[28] Digital Sales - Digital system sales exceeded $11 billion in Q4, with a digital mix of nearly 60%, and approached $40 billion for the full year[10] Profit Margins - The company reported a 12.7% margin for company-owned restaurants in Q4, up 40 basis points year-over-year, while the full-year margin was 12.1%, down 10 basis points[13] - Company restaurant margin for the quarter was 25.4%, a slight decrease of 0.1 percentage points from 25.5% in the prior year[38] - The company restaurant margin for the year ended December 31, 2025, was 15.7%, compared to 16.9% in 2024, indicating a decline of 1.2 percentage points[66] Expenses and Liabilities - Company restaurant expenses for the year ended December 31, 2025, were $2,483 million, up from $2,120 million in 2024, indicating a 17.1% increase[66] - General and administrative expenses for the year ended December 31, 2025, totaled $1,262 million, compared to $1,181 million in 2024, reflecting a growth of 6.9%[66] - Total liabilities increased to $15,521 million in 2025 from $14,375 million in 2024[46] Strategic Initiatives - Yum! Brands is focused on long-term growth strategies, including a review of strategic options for the Pizza Hut brand and a sizeable Taco Bell store acquisition[3] - In Q1 2025, the Company incurred approximately $32 million in charges related to a strategic options review for the Pizza Hut brand, with an additional $36 million in charges for the year[71] Refranchising and Acquisitions - The Company acquired 128 Taco Bell U.S. restaurants for approximately $670 million, incurring $6 million and $7 million in charges for the quarter and year ended December 31, 2025, respectively[77] - The company reported a refranchising loss of $48 million for the year ended December 31, 2025, compared to a loss of $34 million in 2024[66] Tax and Special Items - The effective tax rate excluding special items was 25.9% for the quarter, consistent with the previous year's rate of 25.1%[58] - Special Items Expense for the year totaled $122 million, compared to $141 million in the previous year, indicating a reduction of 13.5%[57] - Special Items Tax (Benefit) Expense for the year ended December 31, 2025, included a tax benefit of $98 million, reflecting the tax impact of various special items[73]

2月3日，必胜客重庆首家国际友好主题餐厅在解放碑环球金融中心正式亮相。作为川渝黔滇市场第300家门店，该餐厅在市政府外办、渝 中区政府等部门指导下转型升级，将通过"桥梁计划"为在渝外籍人士提供便利服务，打造城市国际交往新窗口。 活动现场（必胜客供图） 活动现场，"桥梁"服务点格外醒目，陈列着《境外人士在渝工作生活指引》《渝中区文旅手绘地图》等实用手册。据了解，这些多语种 资料涵盖出行、住宿、医疗等方面内容，将为外籍人士解决"最后一米"生活指引问题。 "这不仅是餐饮场所的升级，更是城市服务的延伸。"渝中区委相关负责人表示。作为重庆国际交往核心区的重要尝试，该项目联动支付 便利化、离境退税等服务，全方位优化外籍人士在渝体验。 活动现场还发布了"桥梁计划"，将通过国际志愿者力量提供多语言服务。据悉，目前已组建千余名中外志愿者队伍，累计为20万人次游 客提供过服务。未来将以餐厅为阵地，开展常态化文化交流活动。 活动现场（必胜客供图） 活动现场（必胜客供图） 近年来，渝中区不断创新国际交往载体，先后打造国际友城美食街等特色场景。此次国际友好主题餐厅的设立，进一步拓展了服务半 径，以小场景服务大发展，将持续为重庆建设国际 ...

Group 1 - McDonald's recently raised prices on several core menu items by 0.5 to 1 yuan, affecting burgers, snacks, and desserts, while KFC adjusted delivery prices by an average of 0.8 yuan, keeping dine-in prices unchanged [3][6] - The price adjustments by both fast-food giants are attributed to rising operational costs, including increases in raw materials, labor, and logistics expenses, which have put significant pressure on the fast-food industry [6][8] - The price increases are seen as a necessary strategy for maintaining financial stability and brand image, as lowering product quality or service could harm consumer loyalty [8][9] Group 2 - Despite the rationale behind price hikes, the competitive landscape in the restaurant market is intensifying, with consumers becoming more price-sensitive and potentially shifting to more affordable dining options [9][11] - Competitors may capitalize on the price increases by offering discounts or promotions, which could further erode market share for fast-food brands like McDonald's and KFC [9][11] - The reliance on price adjustments to manage cost pressures is viewed as a short-term solution, with a need for these companies to innovate and diversify their offerings to ensure sustainable growth [11]

Group 1 - The upcoming U.S. closures are part of a program called "Hut Forward," which includes marketing initiatives, technology modernization, and franchise agreements, aimed at long-term growth [3] - The closures will focus on underperforming U.S. stores, with approximately 32% of Pizza Hut's 19,872 stores located in the U.S., translating to about 6,360 locations [4] - Closing 250 units represents about 4% of the brand's U.S. system, comparable to Starbucks' recent closure of 400 units [5] Group 2 - Yum is conducting a strategic review of Pizza Hut, which may lead to a sale of the brand, with the review expected to be completed this year [5] - The company has incurred significant costs related to the review process, totaling $36 million in 2025, including $32 million in Q4 [6] - Pizza Hut's global store count decreased from 20,225 at the end of 2024 to 19,974 at the end of 2025, with many closures resulting from the termination of a franchising agreement in Turkey [7] Group 3 - Pizza Hut's U.S. same-store sales declined by 3% in Q4 and by 5% for the entire year, indicating ongoing challenges for the brand [8]

Group 1 - The core theme of the KFC Little Migrant Bird Fund's new initiative is "Together for a Reunion Year, Let Love Wait No More," focusing on supporting left-behind and disadvantaged children across China [1] - The KFC Little Migrant Bird Fund, established in partnership with the China Children and Teenagers' Fund in 2016, is celebrating its 10th anniversary this year, with a series of activities aimed at addressing the unique needs of left-behind and disadvantaged children [1] - The fund has organized "New Year Reunion Carnival" events in over 20 KFC restaurants across various cities, allowing children and their working parents to experience traditional customs and interactive games [1] Group 2 - Since its inception, the KFC Little Migrant Bird Fund has engaged in various activities such as reading, arts, and sports to care for left-behind and migrant children, with a goal to donate over 1.25 million books by the end of 2025, benefiting nearly 6.5 million children [2]