Recently, foodservice giant Yum! Brands released its financial results for the fourth quarter and year ended December 31, 2021. The company’s full-year system sales saw a growth of 13 percent and record digital sales of $22 billion.
“We opened an astounding 4,180 gross units in 2021, marking the strongest growth year in Yum!'s history and setting a restaurant industry record for unit development. We also reached new heights in digital sales that topped $22 billion,” David Gibbs, Chief Executive Officer, said. “I’m confident and energized heading into 2022, which marks Yum!’s 25th anniversary, as we continue to build the world’s most loved and trusted brands while delivering lasting value for our stakeholders.”
Yum! Brands states digital sales includes all transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology. In its fourth quarter, Yum! saw a nine percent system sales growth with over $6 billion in digital sales, leading to this trade news writer to think that technological interfaces such as apps and delivery platforms have played a major role in reaching a wider audience.
According to the release, worldwide system sales grew 13 percent excluding foreign currency translation, with KFC at 16 percent, Taco Bell at 13 percent, and Pizza Hut at six percent for the full year. Foreign currency translation favorably impacted divisional operating profit by $54 million. Yum! also repurchased 13 million shares, totaling $1.6 billion at an average price per share of $122.
“Our fiscal 2021 system sales growth of 13 percent, with 10 percent same-store sales and 6 percent unit growth, illustrates the health of our global system—iconic brands; capable, committed, and well-capitalized franchise partners; and strong unit economics," said Chris Turner, Chief Financial Officer. 'During the quarter, system sales grew 9 percent, including 5 percent same-store sales growth, or 4 percent on a 2-year basis. We remain focused on fueling growth, with confidence in our Recipe for Growth and Good strategies and delivering on our long-term growth algorithm in fiscal 2022 and beyond.”
To read more about the company’s financial results, click here.
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