Yum! Brands is Prepared for Growth in 2021 and Beyond
Yum! Brands’ portfolio includes iconic restaurants such as KFC, Pizza Hut and Taco Bell. (Photo credit: iStock/RobsonPL)
Yum! Brands Inc. — which has iconic restaurants in its portfolio such as KFC, Pizza Hut and Taco Bell — recently reported the results for its fourth quarter and 2020 as a whole. According to the company, its fourth-quarter earnings per share (EPS) was $1.08, which represented a decrease of 32% over 2019, while its full-year GAAP EPS was $2.94, which was a decrease of 29%.
However, its fourth-quarter EPS excluding special items was $1.15, which was an increase of 15%, and its full-year EPS excluding special items was $3.62, which was an increase of 2%. CEO David Gibbs expressed confidence in the company as it moves forward. “Yum! enters 2021 a stronger company, primed to profitably grow system sales this year and beyond,” he said.
“Despite the challenges of 2020, our full-year results demonstrated our resilience and validated the strategies we put in place during the transformation of Yum!,” he continued. “We intensified our focus on leveraging our scale and reinforcing our growth model by accelerating our investments in digital and technology to enhance the customer experience and unit economics.”
Last year, Gibbs said digital sales hit a record of $17 billion, which was approximately a 45% increase over 2019 and a testament to its brands’ ability to quickly meet new client needs. “I am more confident than ever in the ability of our teams and franchisees to compete and win in a rapidly changing world,” he said.
Chief Financial Officer Chris Turner added that the company’s Q4 results are evidence that its brands are effectively positioned to win in an off-premise environment and that its business model is positioned for sustained rapid growth after the pandemic.