LOUISVILLE, Ky. - Yum! Brands, Inc. (NYSE:YUM) announced that its Board of Directors has declared a quarterly dividend of $0.67 per share of common stock. The dividend is payable on December 13, 2024, to shareholders of record as of the close of business on December 2, 2024.
The company, headquartered in Louisville, Kentucky, franchises or operates a vast network of over 60,000 restaurants across more than 155 countries and territories. Its portfolio includes well-known food service brands such as KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill. These brands are recognized leaders in their respective food categories, with KFC in the chicken segment, Taco Bell in Mexican-style fare, and Pizza Hut in pizza.
In addition to its financial announcement, Yum! Brands has been acknowledged for its corporate responsibility and leadership efforts. The company was listed on the Dow Jones Sustainability Index North America for the eighth year in a row in 2024. It has also been featured in TIME Magazine's list of Best Companies for Future Leaders, Newsweek's list of America's Most Responsible Companies, and USA Today's America's Climate Leaders.
The company's commitment to diversity and inclusion has also been recognized. In 2023, Yum! Brands was included in the Bloomberg Gender-Equality Index and Forbes' list of America's Best Employers for Diversity. Moreover, the KFC, Taco Bell, and Pizza Hut brands held top positions in Entrepreneur's Top Global Franchises Ranking for 2023.
This dividend declaration follows a series of accolades for the company, highlighting its commitment to sustainability, leadership development, and diversity. The information provided is based on a press release statement from Yum! Brands, Inc.
In other recent news, Yum! Brands reported a 3% year-over-year profit growth in its third-quarter earnings call, largely driven by strong performance at Taco Bell U.S. and KFC International. Despite global pressures, the fast-food corporation managed to navigate through a challenging consumer environment, with Taco Bell U.S. seeing a 4% increase in same-store sales and KFC International achieving a 9% unit growth across 64 countries. However, Pizza Hut experienced a 1% decline in system sales due to competitive pressures.
Yum! Brands also highlighted its digital initiatives and the upcoming Taco Bell Consumer Day. The company expects Q4 core operating profit growth in the mid-to-high single-digits, with Taco Bell margins forecasted at 23% to 24%. Yum! plans to maintain a resilient balance sheet and continue investing in its brands, with initiatives such as the expansion of AI-driven technologies and loyalty programs. The company has opened about 4,500 new restaurants in 2024, signaling a robust growth trajectory.
It's worth noting that Yum! Brands announced several key leadership changes, including Erica Burkhart's promotion to Chief Legal Officer and Joe Park's expanded role in overseeing digital and restaurant technology. These developments are part of the company's ongoing efforts to sustain growth and capture global market opportunities.
InvestingPro Insights
Yum! Brands' recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 2.02% and has impressively maintained dividend payments for 21 consecutive years. An InvestingPro Tip reveals that Yum! has raised its dividend for 6 consecutive years, underscoring its commitment to returning value to shareholders.
The company's financial health appears robust, with a market capitalization of $37.49 billion and a revenue of $7.223 billion over the last twelve months as of Q3 2024. Yum! Brands has demonstrated profitability, with an operating income margin of 33.77% during the same period. This aligns with another InvestingPro Tip indicating that analysts predict the company will remain profitable this year.
While Yum! Brands trades at a P/E ratio of 24.73, which may seem high, it's worth noting that the stock generally trades with low price volatility, potentially offering stability to investors. The company's strong brand portfolio and global presence, as mentioned in the article, contribute to its solid market position.
For readers interested in a deeper dive into Yum! Brands' financial metrics and future outlook, InvestingPro offers 8 additional tips that could provide valuable insights for investment decisions.
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