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Yum! Brands, the global fast-food giant behind KFC and Pizza Hut, has made a remarkable financial recovery, returning to profitability in 2023 after a challenging previous year. The European division of Yum! Brands reported a pre-tax profit of $317.1 million (£248.2 million) for 2023, a significant turnaround from the $300 million (£234.8 million) pre-tax loss recorded in 2022, according to recent filings with Companies House.
The company’s profit surge was driven primarily by the reversal of its investment write-down in Yum! Restaurants Europe and dividends received from Pizza Hut Europe. During the year, the company also acquired KFC Holdings BV as part of an internal reorganization.
This financial success allowed Yum! Brands to distribute a substantial dividend of $208 million (£162.8 million) for the year. The wider Yum! Brands group, which also includes Taco Bell and The Habit Burger Grill, reported a total revenue of $7 billion for 2023, up from $6.8 billion in the previous year.
Yum! Brands CEO David Gibbs celebrated the company’s achievements, highlighting the milestone of crossing the $60 billion system sales threshold and the opening of over 4,700 new stores worldwide. CFO Chris Turner echoed this optimism, emphasizing the company’s growth across 110 countries and the continued expansion of its digital and AI-driven ecosystem.
Looking ahead, Yum! Brands expects 2024 to be another year of significant milestones, with plans to further scale its technology capabilities and loyalty programs while maintaining a strong focus on cost control.
