Yum! Brands, Inc. (NYSE: YUM) reports q4 financial results. The company refranchised 331 restaurants which include 227 KFCs and 104 Taco Bells. Yum! Brands repurchased 7.8 Million shares which sums up to USD 696 Million at an average value of USD 90.
For the full year, worldwide system sales grew 5% and the company refranchised 660 restaurants, 97 Pizza Huts, 199 Taco Bells, and 364 KFCs. The company repurchased a total of 28.2 million shares that sum up to USD 2.4 Billion at an average cost of USD 85.
Greg Creed, CEO, said, “I am very proud of what we have been able to accomplish in just two short years since we announced the transformation of Yum!. In 2018, our diverse portfolio of iconic brands generated over USD 49 Billion in system sales and ended the year with over 48,000 restaurants. Focus on our four growth drivers, increased collaboration and a new mindset are fueling strong results. During 2018, system sales grew 5% with same store sales growth of 2%, and net unit growth of 4%, excluding the impact of Telepizza. Combined across our brands and led by over 2,000 world-class franchisees, we opened a record 8 gross new restaurants per day across the globe in 2018. As we move into 2019, we will continue to pursue even more growth, leverage our unprecedented scale, and maximize value for all Yum! stakeholders.”
David Gibbs, President, COO and CFO, continued, “Fourth-quarter results were a strong finish to a solid year, and serve as a healthy foundation for our 2019 guidance. I am also pleased that we made significant progress on our transformation commitments in 2018, having achieved our goal of becoming at least 98% franchised. Our commitment to being more focused, more franchised and more efficient is strengthening our enviable business model. Yum! is well positioned to leverage our massive scale and expand our capabilities in order to improve franchise unit economics and accelerate growth.”
$YUM share value fell below USD 92.50 this morning but quickly re-gained value and closed green, 2 cents above previous closing price of USD 94.59 at USD 94.61.