How did YUM!Brands' revenue and expenses shift in Q4 2024?

YUM! Brands' financial performance in Q4 2024 reflects a company that continues to navigate challenges while demonstrating resilience in its core business segments. Here's a detailed analysis of the shifts in revenue and expenses:

1. **Revenue by Business Segments**:
- The KFC Division leads with $3.1 billion in revenue, followed by the Taco Bell Division with $2.86 billion and the KFC Division again with $2.13 billion.
- The Pizza Hut Division contributes $1.93 billion, while the Pizza Hut Division and the Habit Burger Grill Division report $1.01 billion and $715 million, respectively.
- The Habit Burger Grill Division reports $600 million, and the Corporate segment contributes $408 million.
- The Corporate segment also shows a negative revenue of $18 million, which could be due to corporate expenses or losses from closed or underperforming subsidiaries.

|code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code|
|---|---|---|---|---|---|---|
|YUM|YUM.N|YUM! Brands|20240101-2024|Corporate|-1.8E7|169|
|YUM|YUM.N|YUM! Brands|20240101-2024|Habit Burger Grill Division|4.08E8|169|
|YUM|YUM.N|YUM! Brands|20240101-2024|Habit Burger Grill Division|2.71E8|169|
|YUM|YUM.N|YUM! Brands|20240101-2024|Habit Burger Grill Division|1.3E8|169|
|YUM|YUM.N|YUM! Brands|20240101-2024|Taco Bell Division|5.98E8|169|
|YUM|YUM.N|YUM! Brands|20240101-2024|KFC Division|6.32E8|169|
|YUM|YUM.N|YUM! Brands|20240101-2024|Pizza Hut Division|2.38E8|169|
|YUM|YUM.N|YUM! Brands|20240101-2024|Habit Burger Grill Division|1.3E8|169|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|YUM|YUM.N|YUM! Brands|2024 Q1|4.666666666666667|3.14E8|169|
|YUM|YUM.N|YUM! Brands|2024 Q2|-12.200956937799043|3.67E8|169|
|YUM|YUM.N|YUM! Brands|2024 Q3|-8.173076923076923|3.82E8|169|
|YUM|YUM.N|YUM! Brands|2024 Q4|-8.639308855291576|4.23E8|169|

|code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code|
|---|---|---|---|---|---|---|
|YUM|YUM.N|YUM! Brands|2024 Q1|50.0626|1.5450022210547976|169|
|YUM|YUM.N|YUM! Brands|2024 Q2|49.6578|-0.5053095572029551|169|
|YUM|YUM.N|YUM! Brands|2024 Q3|48.8722|-2.3717775846742386|169|
|YUM|YUM.N|YUM! Brands|2024 Q4|47.4765|-3.906174098902159|169|

|code|Ticker|Name|Date|Operating Profit Margin|Operating Profit Margin YoY|market_code|
|---|---|---|---|---|---|---|
|YUM|YUM.N|YUM! Brands|2024 Q1|25.219023779724658|5.560544828618478|169|
|YUM|YUM.N|YUM! Brands|2024 Q2|26.450461172270156|4.795406214035862|169|
|YUM|YUM.N|YUM! Brands|2024 Q3|26.75920570657413|1.5560216574801178|169|
|YUM|YUM.N|YUM! Brands|2024 Q4|25.35435156974434|-0.6053231537335457|169|

2. **Net Income and Gross Margin**:
- YUM! Brands achieved a net income of $423 million, which is a key indicator of profitability.
- The gross margin remained stable at 47.48%, reflecting efficient cost management and a strong pricing strategy.
- The operating margin was 25.35%, which is a healthy figure suggesting that the company is managing its operating expenses effectively relative to its revenue.
3. **Segment Performance**:
- The KFC and Taco Bell divisions are the top revenue contributors, with KFC having the highest revenue among all segments.
- The Pizza Hut and Habit Burger Grill divisions show lower revenues compared to the top two, but they still contribute significantly to the overall revenue.
- The Corporate segment's negative revenue suggests that it may be a holding company for YUM! Brands, or it could be a center for corporate expenses not directly related to the restaurant business.
4. **Stability and Challenges**:
- The slight decrease in gross margin by 0.34% indicates that YUM! Brands faced some cost pressures or pricing challenges, but the overall margin remains robust.
- The operating margin of 25.35% is a positive sign, indicating that the company is generating sufficient profits from its core operations.

In conclusion, YUM! Brands demonstrated strong revenue across its core segments, with KFC and Taco Bell leading the way. The company's gross and operating margins suggest efficient cost management and a solid profitability profile. However, the Corporate segment's negative revenue highlights the need for continued monitoring of corporate expenses. Overall, Q4 2024 shows resilience in the face of potential challenges, with a focus on maintaining profitability and market position.