LOUISVILLE - Yum! Brands, Inc. (NYSE: NYSE:YUM), which operates global restaurant brands including KFC, Taco Bell, Pizza Hut, and the Habit Burger Grill, announced a quarterly dividend of $0.67 per common share. The dividend is payable on September 6, 2024, to shareholders of record as of August 27, 2024.
The company, headquartered in Louisville, Kentucky, oversees a vast network of over 59,000 restaurants across more than 155 countries and territories. Its portfolio includes some of the world's leading brands in the chicken, Mexican-style food, and pizza sectors, as well as the Habit Burger Grill, known for its made-to-order chargrilled burgers and sandwiches.
Yum! Brands has been recognized for its corporate responsibility and leadership development efforts. In 2024, it was included in the Dow Jones Sustainability Index North America for the eighth year in a row and featured on TIME Magazine's list of Best Companies for Future Leaders. The company also made Newsweek's list of America's Most Responsible Companies and USA Today's list of America's Climate Leaders.
In the previous year, Yum! Brands received accolades for its commitment to diversity and equality. It was listed on the Bloomberg Gender-Equality Index and Forbes' list of America's Best Employers for Diversity. Additionally, its KFC, Taco Bell, and Pizza Hut brands ranked in the top five of Entrepreneur's Top Global Franchises Ranking for 2023.
This dividend announcement follows a series of recognitions for Yum! Brands' corporate practices and brand performance. The information is based on a press release statement from Yum! Brands, Inc.
In other recent news, Yum! Brands showcased a robust performance with a 10% growth in core operating profit for the second quarter of 2024. The firm's focus on affordable consumer options, digital expansion, and sustainable practices contributed to this positive outcome. Taco Bell and KFC International were significant drivers of system sales and operating profit growth. Meanwhile, Loop Capital raised the price target for Yum! Brands to $143 from $135, maintaining a Hold rating on the stock. This decision follows Yum! Brands' modest earnings per share beat for the same quarter, with an adjusted EPS of $1.35. However, the company experienced a 3% decline in comparable sales for KFC and Pizza Hut. On a brighter note, Taco Bell outperformed expectations with a 5% increase in comparable sales. Looking forward, Yum! Brands is planning for further expansion in the UK and Canada, primarily focusing on Pizza Hut, and expects at least 8% core operating profit growth in 2025.
InvestingPro Insights
As Yum! Brands (NYSE: YUM) continues to reward shareholders with dividends, the company's financial health and market performance provide a broader context for these payouts. Yum! Brands has demonstrated a commitment to shareholder returns, having raised its dividend for six consecutive years, and maintaining dividend payments for 21 consecutive years—an indicator of its financial stability and a reassuring sign for investors interested in steady income streams.
However, investors should note that the company is trading at a high Price-to-Earnings (P/E) ratio of 24.87, which suggests a premium relative to near-term earnings growth. This high valuation may reflect investor confidence in the company's future performance, supported by a stable gross profit margin of 49.3% over the last twelve months as of Q2 2024. Additionally, Yum! Brands' liquid assets exceed its short-term obligations, which is a positive sign of the company's liquidity and ability to meet immediate financial commitments.
With a market capitalization of $38.71 billion, Yum! Brands is a significant player in the fast-food industry, and its stock has been trading near its 52-week high, at 96.24% of the peak price. This level of market performance, along with a dividend yield of 1.95%, makes Yum! Brands an attractive consideration for investors seeking both growth and income.
For those looking to delve deeper into the company's financials and future potential, InvestingPro provides additional insights. There are currently 18 more InvestingPro Tips available, which can offer a comprehensive analysis of Yum! Brands' investment profile. These tips can be accessed by visiting the InvestingPro platform at https://www.investing.com/pro/YUM.
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