was a truly historic year for Yum!. We successfully completed our three-year transformation and delivered on all of our bold commitments. Plus, we surpassed two milestones that are a testament to Yum!’s incredible scale as we eclipsed $50 billion in system sales and marked the opening of our 50,000th restaurant. None of this would have been possible without our unrivaled culture and talent and over 2,000 franchisees who run 98% of our restaurants globally and employ more than 1.5 million restaurant team members. Because of our journey to become more focused, franchised and efficient, we are well-positioned to accelerate growth and improve franchise unit economics over the long term.
Our new Recipe for Growth and Good will Unlock our Potential and reflects the importance of collaboration as we continue to build the world’s most loved, trusted and fastest-growing brands.
Our Recipe for Growth, using our four key growth drivers, is the foundation upon which our sustainable, long-term results are being built. These growth capabilities, outlined below, are the key drivers of samestore sales and net-new unit growth and serve as our guiding principles in all business decisions.
Our Recipe for Good is focused on leading with socially responsible and sustainable stewardship of our food, planet and people.
I firmly believe our culture is a competitive advantage for Yum! With culture as the driving force behind our results, I’m pleased to share the following highlights from 2019:
In closing, 2019 marked the successful conclusion of our massive transformation, and we began 2020 with the exciting news that we are adding The Habit Burger Grill to the Yum! family. This deal should enable us to offer an exciting new investment opportunity to our existing franchisees and expand an award-winning, trend-forward brand through the power of Yum!’s unmatched scale.
That said, the COVID-19 (coronavirus) pandemic continues to rapidly evolve, and our No. 1 priority is the health and safety of our employees, franchisees and customers. We are closely monitoring the situation and the ever-changing intelligence from public health, travel and national security authorities in countries where we operate to ensure we protect our people, customers and brands. With our franchisees, we have industry-leading action plans, standards and policies in the restaurants to prevent and limit the spread of COVID-19. As the world’s largest restaurant company, our customers span ages, backgrounds and borders, and we remain committed to serving them in a way that protects their health and safety. Times like these are a reminder that we are all globally connected and each have a role to play in helping others. At Yum!, we are committed to doing just that.
David Gibbs, CEO
David Gibbs,
Chief Executive Officer,
Yum! Brands, Inc.
| (In millions, except for per share amounts) Year-end | 2019 | 2018 | %B/(W)change |
| Company Sales | $1,546 | $2,000 | (23) |
| Franchise and property revenues | 2,660 | 2,482 | 7 |
| Franchise contributions for advertising and other services | 1,391 | 1,206 | 15 |
| Total Revenues | $5,597 | $5,688 | (2) |
| Operating Profit | $1,930 | $2,296 | (16) |
| Net Income | $1,294 | $1,542 | (16) |
| Reported Diluted Earnings Per Common Share from Continuing Operations | $4.14 | $4.69 | (12) |
| Special Items Diluted Earnings Per Common Share (a) | .59 | 1.52 | NM |
| Diluted Earnings Per Common Share from Continuing Operations before Special Items (a) | $3.55 | $3.17 | 12 |
| Net Cash Provided by Operating Activities from Continuing Operations | $1,315 | $1,176 | 12 |
(a) See our 2019 Form 10-K for further discussion of Special Items.
