How does YUM's Q1 forecast compare to past trends?

YUM's Q1 forecast reflects positive momentum from Taco Bell, aligning with past trends of strong performance:

1. **Taco Bell's Growth Drivers**: Taco Bell's forecasted 8% increase in U.S. same-store sales for Q1 is in line with its historical performance. In 2024, Taco Bell achieved $1 billion in profit and grew U.S. same-store sales across all quarters, with notable gains in digital sales and new restaurant openings.
2. **Financial Milestones**: Taco Bell's success in 2024, including a 32% growth in digital sales and the opening of 347 new locations, sets a positive precedent for Q1 expectations. The chain's innovative menu, commitment to value and abundance, and strategic international expansion are key drivers of its growth.
3. **Company Performance**: YUM! Brands as a whole has outperformed expectations in the past, with the fourth quarter of 2024 seeing EPS of $1.61, surpassing the street view of $1.60. This track record of exceeding expectations suggests that Q1 forecasts are well-supported by the company's recent achievements and growth strategies.

In conclusion, YUM's Q1 forecast is consistent with past trends of robust growth, particularly at Taco Bell, which continues to be a key driver of the company's overall performance.