Sign in

    Yum! Brands Inc (YUM)

    CEO Change

    You might also like

    Yum! Brands, Inc. (YUM) operates a global system of over 58,000 restaurants in more than 155 countries and territories under four main concepts: KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill . The company specializes in offering a variety of fast-food options, including chicken products, Mexican-style food, pizza, and chargrilled burgers . The majority of Yum! Brands' restaurants are operated by franchisees, with franchise and property revenues playing a significant role in the company's financial structure .

    1. KFC - Specializes in chicken products, offering a wide range of fried and grilled chicken meals.
    2. Taco Bell - Offers Mexican-style food, including tacos, burritos, and other specialty items.
    3. Pizza Hut - Focuses on pizza, providing a variety of pizza styles and complementary side dishes.
    4. The Habit Burger Grill - Known for chargrilled burgers, offering a fast-casual dining experience.
    NamePositionStart DateShort Bio
    David GibbsChief Executive OfficerJanuary 2020David Gibbs has been the CEO of YUM! Brands since January 2020. He previously served as President and COO, and has held various roles at YUM since at least 2005, including CEO of the Pizza Hut Division .
    Scott CatlettChief Legal and Franchise Officer and Corporate SecretaryJuly 2020Scott Catlett has been the Chief Legal and Franchise Officer and Corporate Secretary since July 2020. He previously served as General Counsel and Corporate Secretary and has been with YUM since 2007 .
    Sean TresvantChief Executive Officer of Taco Bell DivisionJanuary 2024Sean Tresvant became the CEO of the Taco Bell Division in January 2024. He joined Taco Bell in January 2022 as Global Chief Brand Officer and was promoted to Global Chief Brand & Strategy Officer in February 2023 .
    Aaron PowellChief Executive Officer of Pizza Hut DivisionSeptember 2021Aaron Powell has been the CEO of the Pizza Hut Division since September 2021. Before joining YUM, he held various positions at Kimberly-Clark, Bain & Company, and Procter & Gamble .
    David RussellSenior Vice President, Finance and Corporate ControllerFebruary 2017David Russell has been the Senior Vice President, Finance since February 2017 and Corporate Controller since February 2011. He has held various finance roles at YUM since 2008 .
    Sabir SamiChief Executive Officer of KFC DivisionJanuary 2022Sabir Sami has been the CEO of the KFC Division since January 2022. He previously served as COO and Managing Director of KFC Asia and joined YUM in 2009 after roles at Procter & Gamble, Coca-Cola, and Reckitt Benckiser .
    Tracy SkeansChief Operating Officer and Chief People OfficerJanuary 2021Tracy Skeans has been the COO since January 2021 and Chief People Officer since January 2016. She was previously the Chief Transformation Officer and President of Pizza Hut International .
    Christopher TurnerChief Financial OfficerAugust 2019Christopher Turner has been the CFO of YUM since August 2019. He previously held senior roles at PepsiCo and was a partner at McKinsey & Company .
    1. Given that sales trended below expectations this quarter due to challenges in the U.S., soft trends in China, and pressures from the Middle East conflict, can you elaborate on the specific strategies you are implementing to mitigate these headwinds and drive sales growth in these key markets?

    2. You've mentioned the risk of not achieving your 5% unit growth target due to increased closures, particularly in markets affected by the Middle East conflict. How do you plan to address these closures, and what measures are you taking to ensure unit growth returns to your long-term targets?

    3. With elevated closures impacting net new unit growth, especially in the Middle East and China, how is this affecting your overall system sales growth, and do you expect these challenges to continue into next year?

    4. The complex consumer environment has led to significant same-store sales declines in certain markets, with KFC same-store sales declines ranging between 15% and 45% throughout the year. How confident are you in offsetting these declines through growth in other regions, and what initiatives are you implementing to improve same-store sales performance globally?

    5. Your net leverage ratio ended the quarter at 4.1x, and you've stated that you have no debt maturities until 2026. Given the challenging operating environment and potential pressures on cash flow, how do you assess your balance sheet flexibility and capital allocation priorities moving forward?

    Program DetailsProgram 1Program 2
    Approval DateSeptember 2022May 2024
    End Date/DurationExpired on June 30, 2024 Through December 31, 2026
    Total additional amountNot specified$2 billion
    Remaining authorization amount$0 $1.7 billion
    DetailsExpired programMaximize shareholder value by returning excess capital
    NameStart DateEnd DateReason for Change
    KPMG LLP1997 PresentCurrent auditor

    Recent developments and announcements about YUM.

    Corporate Leadership

      Leadership Change

      ·
      Jan 15, 2025, 11:19 AM

      Who is leaving? Mr. Sabir Sami, the Chief Executive Officer of the KFC Division of Yum! Brands, Inc., is resigning from his position effective March 1, 2025. He will continue as an advisor to the company until March 1, 2026.

      Why? The document does not specify the reason for his resignation.

      Who is stepping up? Scott Mezvinsky, currently the President of Taco Bell North America and International, will take over as the Chief Executive Officer of KFC starting March 1, 2025.

      CEO Change

      ·
      Jan 15, 2025, 11:18 AM

      The CEO of KFC, a division of Yum! Brands, Inc., Sabir Sami, has announced his resignation effective March 1, 2025. He will transition to an advisory role until March 1, 2026. Scott Mezvinsky, currently President of Taco Bell North America and International, will succeed him as CEO of KFC on the same date.

    Financial Reporting

      Earnings Report

      ·
      Jan 8, 2025, 11:20 AM

      Yum! Brands has recently released an update regarding its financial performance and strategic decisions. On January 8, 2025, Yum! Brands terminated its franchise agreements with IS Gida A.S., affecting 283 KFC and 254 Pizza Hut restaurants in Turkey. This decision was due to the franchisee's failure to meet Yum! Brands' standards. The company anticipates a pre-tax special charge of approximately $60 million in the fourth quarter of 2024, primarily due to transaction costs related to the German acquisition and termination-related costs in Turkey. Despite the closures, Yum! Brands expects no material impact on its core operating profit in 2025 and beyond, as the sales in Turkey were significantly below the global average. The company remains confident in its global unit growth trajectory and expects no impact from this termination on other markets.

    Financial Actions

      Strategic Assets

      ·
      Jan 8, 2025, 11:20 AM

      Summary of Yum! Brands' Recent Transactions and Their Impacts

      On January 8, 2025, Yum! Brands, Inc. announced two significant developments:

      1. Termination of Franchise Agreements in Turkey:

        • Yum! Brands terminated its franchise agreements with IS Gida A.S., the operator of 283 KFC and 254 Pizza Hut restaurants in Turkey, due to failure to meet Yum!'s standards. This will result in the temporary closure of these restaurants.
        • The Turkey operations had been underperforming, with sales significantly below the global average for both brands. Consequently, the loss of royalties from these closures is expected to have no material impact on Yum!'s core operating profit in 2025 and beyond.
      2. Re-acquisition of Master Franchise Rights in Germany:

        • Yum! Brands re-acquired the master franchise rights for KFC and Pizza Hut in Germany from IS Holding in December 2024. This transaction is unrelated to the Turkey termination and has no operational impact on the German market.

      Financial Implications:

      • Yum! Brands anticipates a pre-tax special charge of approximately $60 million in Q4 2024. This includes transaction costs for the German acquisition and termination-related costs for the Turkey business.
      • The Turkey closures will result in a one-time reduction in Yum!'s reported unit counts at the end of Q1 2025. However, Yum! remains confident in its global unit growth trajectory, with no expected impact on other markets.

      Operational Outlook:

      • While the Turkey closures represent a temporary setback, Yum! Brands' global operations and growth strategy remain unaffected. The company continues to focus on maintaining high operational standards and expanding its footprint in other markets.

    Legal & Compliance

      Legal Proceedings

      ·
      Jan 8, 2025, 11:20 AM

      Summary of the Legal Matter Involving Yum! Brands, Inc.:

      • Key Parties Involved:

        • Yum! Brands, Inc.: The parent company involved in the legal proceedings.
        • IS Gida A.S.: The franchisee and owner/operator of KFC and Pizza Hut restaurants in Turkey.
        • IS Holding A.S.: The parent company of IS Gida A.S.
      • Nature of the Proceedings:

        • Yum! Brands, Inc. terminated its franchise agreements with IS Gida A.S. due to the franchisee's failure to meet the company's standards. This termination affects 283 KFC and 254 Pizza Hut restaurants in Turkey, which are expected to close temporarily.
        • Additionally, Yum! Brands re-acquired the master franchise rights in Germany for KFC and Pizza Hut from IS Holding in December 2024.
      • Potential Financial or Operational Consequences:

        • Yum! Brands anticipates a pre-tax special charge of approximately $60 million in the fourth quarter of 2024, primarily due to transaction costs related to the German acquisition and termination-related costs in Turkey.
        • The loss of royalties from the closed stores in Turkey is not expected to have a material impact on Yum!'s core operating profit in 2025 and beyond, as recent sales in Turkey were significantly below the global average.
        • The closures will result in a reduction in Yum!'s reported unit counts at the end of the first quarter of 2025, but the company remains confident in its global unit growth trajectory and expects no impact on other markets.