Pizza Hut Parent Yum! Brands Q4 Earnings Exceed Expectations, Hikes Dividend

Yum! Brands Inc YUM reported fourth-quarter FY22 sales growth of 7% year-on-year to $2.02 billion, beating the consensus of $1.92 billion.
Worldwide same-store sales for the quarter grew 6%, KFC Division increased 5%, Taco Bell climbed 11%, and Pizza Hut gained 1%.
Worldwide system sales excluding foreign currency translation, grew 8%, with KFC at 6%, Taco Bell at 14%, and Pizza Hut at 4%.
Franchise and property revenues increased 8% to $885 million, and Company sales grew 5% Y/Y to $624 million.
Total costs and expenses increased 4% Y/Y to $1.4 billion. The operating margin was 28.6%, and operating income for the quarter gained 15% to $578 million.
Yum! Brands' net cash from operating activities for the year totaled $1.4 billion. It held $367 million in cash and equivalents as of Dec. 31, 2022.
Adjusted EPS of $1.31 beat the analyst consensus of $1.26.
The company's Board of Directors increased the quarterly dividend to $0.605 per share of common stock. The quarterly dividend will be distributed Mar. 10, 2023 to shareholders of record on Feb. 22, 2023.
David Gibbs, CEO, said, "Despite a challenging environment, we achieved widespread system sales growth of 8% excluding Russia with $24 billion in digital sales, demonstrating that our iconic brands are more relevant, easy and distinctive than ever."
Also Read: Yum! Brands Says Cyber Attack Affected 300 UK Restaurants
The company said it incurred some incremental expenses relating to the remediation and investigation of the January ransomware attack but does not expect such expenses to be material.
Price Action: YUM shares are trading higher by 0.82% at $130.40 on the last check Wednesday.

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