Total Revenue

+16% (from $2,036m to $2,362m)

Total Revenue increased by 16% YoY due to improvements in several segments, notably a strong performance in the KFC Division (+27% YoY) and a remarkable surge in U.S. Company Sales (+131% YoY), which helped offset challenges in the Taco Bell Division. " " " " "

Operating Income

+8% (from $609m to $657m)

Operating Income grew by 8% YoY as higher overall revenues and operational efficiencies partly counterbalanced rising costs, reflecting continued solid performance despite increased expenses from acquisitions and market pressures. "

Net Income

-8.5% (from $463m to $423m)

Net Income declined by 8.5% YoY primarily due to increased expenses and higher income tax provisions, which eroded profitability despite top-line growth. "

Basic EPS

-8.4% (from $1.65 to $1.51)

Basic EPS fell by 8.4% YoY, driven by the fall in net income and a higher effective tax rate, which reduced earnings available to shareholders even as revenue increased. "

KFC Division Revenue

+27% (from $761m to $965m)

KFC Division Revenue jumped 27% YoY, fueled by strong growth initiatives such as system sales improvements and contributions from acquisitions, consistent with prior period trends of unit and company sales growth. " "

Taco Bell Division Revenue

-89% (from $819m to $93m)

Taco Bell Division Revenue declined sharply by 89% YoY which may indicate a strategic reclassification or significant shifts in revenue recognition; this contrasts starkly with previous robust growth, underscoring major adjustments or market headwinds impacting this segment. " "

Habit Burger Grill Division Revenue

+10% (from $175m to $192m)

Habit Burger Grill revenue grew modestly by 10% YoY mainly due to incremental system sales growth, despite flat performance in system sales and slight same-store sales declines observed in earlier periods. " "

U.S. Company Sales

+131% (from $123m to $284m)

U.S. Company Sales surged by 131% YoY, largely driven by strategic acquisitions (e.g., KFC U.K. and Ireland) and unit growth that more than compensated for a 4% same-store sales decline in key markets, reflecting a significant shift from the previous period’s lower volumes. " "

U.S. Franchise Contributions for Advertising/Services

+9350% (from $2m to $189m)

U.S. Franchise Contributions skyrocketed by 9350% YoY, likely reflecting a major reclassification or realignment of revenue streams from franchise advertising and other services, marking a dramatic change compared to the negligible values in the previous period. " "

Core Operating Profit Growth

FY 2025

no prior guidance

at least 8% " "

no prior guidance

Unit Growth

FY 2025

no prior guidance

4%–5% (excluding one-time closures) "

no prior guidance

Same-store Sales

FY 2025

no prior guidance

anticipated to improve "

no prior guidance

G&A Expenses

FY 2025

no prior guidance

low single-digit increase (mid-single-digit incl. one-time bonus) "

no prior guidance

Interest Expense

FY 2025

no prior guidance

$500M–$520M "

no prior guidance

Tax Rate

FY 2025

no prior guidance

22%–24% "

no prior guidance

Recurring references to at least 8% core operating profit growth

Q1–Q3: Emphasized meeting ≥8% target, though Q3 noted falling short (6% YTD). " " " " " " " "

Achieved 8% in 2024, reaffirmed commitment for 2025, citing unit growth, sales momentum. " " "

Maintained (Strong consistency and delivered on target)

Ongoing geopolitical risks (Middle East conflict)

Q1–Q3: Low single-digit SSS headwind in Q1; 210 closures in Q2; severe SSS declines (15–45%) in Q3. Still, franchisees showed resilience. " " " " "

Partial recovery: 11% growth in conflict markets in Q4, Turkey franchise termination (not large financial impact). " " "

Improving (Recovery seen in Q4 despite continued challenges)

Continued focus on technology and AI initiatives

Q1–Q3: Multiple AI projects, drive-through Voice AI at Taco Bell, AI-driven marketing. No explicit mention of “Bite.” " " " "

Heightened focus with new proprietary platform “Bite,” integrating Ops & digital, expanding AI personalization. " "

Intensified (Shift toward a more unified, branded platform)

Increasing G&A expenses

Q1–Q3: Mentioned incentive compensation resets, AI, supply chain as drivers of G&A. " " "

$35M YOY headwind from incentive reset, mid-single-digit G&A increase in 2025, tied to AI & supply chain. " "

Rising (More investment in AI, supply chain, and renewed bonuses)

KFC International’s shifting performance & sentiment

Q1–Q3: Middle East conflict weighed on growth; still saw strong unit growth. Recovery signs by Q3 with 9% new units, but conflicts persisted. " " " " " " "

Recovery momentum in Q4, conflict markets +11% in Q4 vs. full-year –12%. Unaffected markets up 9%. " "

Improving (Notable rebound in Q4)

Taco Bell’s consistently strong U.S. presence and margins

Q1–Q3: SSS outperformance, industry-leading margins (23–25%), strong innovation & value offering. " " " " " " " " " "

5% SSS growth, full-year margin at 24.3%—second highest ever, surpassing $1B in core operating profit. " " "

Steady Strength (Continued outperformance)

Challenges achieving net new unit growth amid closures

Q1–Q3: Elevated closures in conflict markets, though on track for 5% unit growth. 210 closures in Q2, 482 in Q3. " " " " "

Over 1,800 new units in Q4, total 4,500 for year. Turkey closures offset some gains, minimal financial hit due to low AUV. "

Mixed (Continued expansion but offset by conflict-related closures)

Discontinued mentions of emerging-market AUVs & LatAm/Africa

Q1: Called out lower emerging-market AUVs, strong LatAm/Africa expansion. " " "

No AUV detail. Brief mention of LatAm +6% comps, Africa +9% comps, but fewer specifics on expansion figures. "

Scaled Back (Fewer references to EM AUVs & expansion data)

New emphasis on Bite in Q4 as a unified global tech solution

Q1–Q3: No references to “Bite” by name, focus was on individual AI/tech projects. " " "

Prominent rollout of “Bite” as a global SaaS platform, linking digital ordering, ops, AI personalization. " " "

Newly Emerged (Introduced as a major global initiative in Q4)

Potential large future impact of tech & global geopolitics

Q1–Q3: Investment in AI indicated big long-term benefits; Middle East conflict cited as a key risk factor. " " " " " " " " "

Bite’s expansion and advanced AI solutions expected to drive efficiency. Middle East stabilizing, but global conflicts remain a watch area. " " "

Continuing High Significance (Tech expansion & geopolitical volatility still seen as major influences)