Yum! Brands, Inc. reported results for the fourth quarter ended December 31, 2016.

“2016 was a landmark year for Yum! Brands,” says Greg Creed, CEO. “Not only did we complete the spin-off of Yum China as an independent and powerful growth company, but we also launched a new multi-year strategic transformation of Yum! Brands. By being more focused, more franchised and more efficient, we will strengthen and grow our KFC, Pizza Hut and Taco Bell brands around the world, creating significant long-term value for all our stakeholders. I’m encouraged by strong fourth-quarter results and early progress on unlocking growth through our four key drivers: Distinctive, Relevant Brands; Unmatched Franchise Operating Capability; Bold Restaurant Development; and Unrivaled Culture and Talent.”

David Gibbs, president and CFO, says “I am pleased with our fourth quarter core operating profit growth of 27 percent, which was a solid end to an extraordinary year. As a testament to the power of our brands, KFC and Taco Bell had relatively strong performance in December, despite difficult U.S. industry conditions. This momentum has continued into the New Year. As we look forward, we are confident in our three-year plans and there is no change to our long-term guidance.”

FOURTH-QUARTER HIGHLIGHTS

Completed the separation of Yum China Holdings, Inc. on October 31, 2016.

GAAP EPS from Continuing Operations of $0.76, reflecting 15 percent growth. EPS from Continuing Operations excluding Special Items of 79 cents, reflecting 19 percent growth.

Total restaurant openings of 1,188.

Foreign currency translation negatively impacted operating profit by $11 million.

FULL-YEAR HIGHLIGHTS

Worldwide system sales growth of 5 percent, excluding foreign currency translation.

During the year, they returned over $6 billion in capital through quarterly dividends and through repurchasing approximately 68 million shares.

Total restaurant openings of 2,316; Net-unit growth of 3 percent.

Foreign currency translation negatively impacted operating profit by $55 million.

KFC Division system sales increased 8 percent for the quarter and 7 percent for the year, excluding foreign currency translation.

KFC Division opened 593 new international restaurants during the quarter.

For the year, KFC Division opened 1,086 new international restaurants in 81 countries, including 885 units in emerging markets.

Operating margin increased 1.9 percentage points for the quarter and 1.4 percentage points for the year driven by franchise net-unit development and same-store sales growth.

The 53rd week provided a benefit of 2 percentage points to system sales growth and 4 percentage points to core operating profit growth for the quarter. For the year, the 53rd week provided a benefit of 1 percentage point to both system sales growth and core operating profit growth.

Foreign currency translation negatively impacted operating profit by $8 million for the quarter and $48 million for the year.

Pizza Hut Division system sales increased 3 percent for the quarter and 2percent for the year, excluding foreign currency translation.

Pizza Hut Division opened 379 new international restaurants during the quarter.

For the year, Pizza Hut Division opened 745 new international restaurants in 74 countries, including 551 units in emerging markets.

Operating margin increased 9 percentage points for the quarter and 4.8 percentage points for the year driven by decreased G&A as a result of lower litigation costs and refranchising.

The 53rd week provided a benefit of 3 percentage points to system sales growth and 5 percentage points to core operating profit growth for the quarter.  For the year, the 53rd week provided a benefit of 1 percentage point to system sales growth and 2 percentage points to core operating profit growth.

Foreign currency translation negatively impacted operating profit by $2 million for the quarter and $7 million for the year.

Taco Bell Division system sales increased 12 percent for the quarter and 6 percent for the year.

Taco Bell Division opened 134 new restaurants in the fourth quarter. For the year, Taco Bell Division opened 294 new restaurants.

Operating margin increased 4.5 percentage points for the quarter and 2.4 percentage points for the year driven by same-store sales growth, decreased G&A and franchise net-unit development.

The 53rd week provided a benefit of 6 percentage points to system sales growth and 8 percentage points to core operating profit growth for the quarter. For the year, the 53rd week provided a benefit of 2 percentage points to both system sales growth and core operating profit growth.

During the quarter, the company refranchised 232 restaurants, including 120 KFC, 83 Pizza Hut and 29 Taco Bell units, for proceeds of $200 million. They recorded refranchising gains of $64 million in Special Items. As of year end, their franchise ownership mix was 93 percent.