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Yahoo
05-08-2025
- Business
- Yahoo
Yum! Brands Reports Second-Quarter Results
KFC International Unit Growth 7% and Taco Bell Same-Store Sales Growth 4%;Over $9 Billion Digital System Sales with Record 57% Digital Sales Mix LOUISVILLE, Ky., August 05, 2025--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the second quarter ending June 30, 2025. Second-quarter GAAP EPS was $1.33 and second-quarter EPS excluding Special Items was $1.44, a 7% increase year-over-year. DAVID GIBBS COMMENTS David Gibbs, CEO, said "Our second-quarter results are a testament to the power of our bold food innovation, digital transformation, and the strength of our iconic brands. Taco Bell U.S. meaningfully outpaced the category with 4% same-store sales growth, and KFC International opened 565 gross new units. I am confident that with our strong development across the system, improving value propositions, and exciting new uses of our proprietary, integrated tech stack, Yum! is well positioned to win in an ever-changing consumer landscape. As I reflect on my incredible 36-year journey with Yum!, it's been a joy to bring our iconic brands to consumers around the world in collaboration with our world-class franchise partners and team members. Yum! is in an enviable position with the very best talent and leaders in this industry at the helm of our global brands. I couldn't be more confident passing the torch to Chris Turner, whose deep understanding of our business and bold vision will continue to propel Yum! forward." RECENT STRATEGIC ANNOUNCEMENTS On June 17th, we announced that the Board of Directors unanimously elected Chris Turner to succeed David Gibbs as Chief Executive Officer, effective October 1, 2025. David will serve as an adviser to the Company until the end of 2026 to ensure a seamless transition. Chris has served as Chief Financial Officer since 2019 and expanded his role to include Chief Franchise Officer in 2024. During his time at Yum!, Chris has been instrumental in driving bold actions including transforming the digital and technology organization, launching Byte by Yum!, centralizing Yum!'s global supply chain, and driving ideation for new, bold concepts within our portfolio. On June 26th, Taco Bell announced plans to scale its innovative beverage concept Live Más Café to 30 locations by the end of 2025. The concept offers over 30 signature beverages, from Churro Chillers and specialty coffees to Refrescas and Dirty Mountain Dew® Baja Blast® Dream Sodas. This launch is part of the brand's long-term beverage strategy to reach $5 billion in beverage sales by 2030. SECOND-QUARTER HIGHLIGHTS Worldwide system sales grew 4%, excluding foreign currency translation, led by Taco Bell at 6% and KFC at 5%. Unit count increased 3% including 871 gross new units in the quarter. Robust digital system sales exceeding $9 billion, with record digital mix of approximately 57%. Foreign currency translation favorably impacted divisional operating profit by $4 million. Reported Results % Change System SalesEx F/X Same-Store Sales Units GAAP OperatingProfit CoreOperating Profit1 KFC Division +5 +2 +5 +9 +8 Taco Bell Division +6 +4 +2 +5 +5 Pizza Hut Division (1) (1) Even (15) (15) Worldwide +4 +2 +3 +2 +2 Second-Quarter Year-to-Date 2025 2024 % Change 2025 2024 % Change GAAP EPS $1.33 $1.28 +4 $2.23 $2.38 (6) Less Special Items EPS1 $(0.11) $(0.07) NM $(0.51) $(0.12) NM EPS Excluding Special Items $1.44 $1.35 +7 $2.74 $2.50 +10 1 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items. All comparisons are versus the same period a year ago. System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details. Digital system sales includes all transactions at system restaurants where consumers utilize ordering interaction that is primarily facilitated by automated technology. KFC DIVISION Second-Quarter Year-to-Date %/ppts Change %/ppts Change 2025 2024 Reported Ex F/X 2025 2024 Reported Ex F/X Restaurants 32,369 30,689 +5 N/A 32,369 30,689 +5 N/A System Sales ($MM) 8,721 8,226 +6 +5 17,061 16,354 +4 +5 Same-Store Sales Growth (%) +2 (3) NM NM +2 (3) NM NM Franchise and Property Revenues ($MM) 437 405 +8 +7 844 802 +5 +6 Operating Profit ($MM) 365 334 +9 +8 697 647 +8 +8 Operating Margin (%) 43.0 46.6 (3.6) (3.3) 42.9 48.0 (5.1) (4.7) Second-Quarter (% Change) Year-to-Date (% Change) International U.S. International U.S. System Sales Growth Ex F/X +7 (8) +7 (5) Same-Store Sales Growth +3 (5) +3 (3) KFC Division opened 566 gross new restaurants across 58 countries. Company-owned restaurant margins were 12.1%, up slightly year-over-year. Foreign currency translation favorably impacted operating profit by $4 million. KFC Markets1 Percent of KFCSystem Sales2 System Sales Growth Ex F/X Second-Quarter(% Change) Year-to-Date(% Change) China 27% +5 +4 United States 14% (8) (5) Europe 12% +7 +7 Asia 11% +10 +9 Latin America 8% +10 +10 Australia 7% +3 +2 United Kingdom 6% +5 +5 Middle East / Turkey / North Africa 6% +10 +10 Africa 5% +11 +11 Canada 2% +9 +10 India 2% +10 +9 1 Refer to for a list of the countries within each of the markets. 2 Reflects Full Year 2024. TACO BELL DIVISION Second-Quarter Year-to-Date %/ppts Change %/ppts Change 2025 2024 Reported Ex F/X 2025 2024 Reported Ex F/X Restaurants 8,756 8,565 +2 N/A 8,756 8,565 +2 N/A System Sales ($MM) 4,275 4,017 +6 +6 8,255 7,614 +8 +8 Same-Store Sales Growth (%) +4 +5 NM NM +6 +3 NM NM Franchise and Property Revenues ($MM) 248 234 +6 +6 482 444 +9 +9 Operating Profit ($MM) 262 250 +5 +5 502 458 +10 +10 Operating Margin (%) 36.8 37.5 (0.7) (0.7) 36.7 36.3 0.4 0.5 Taco Bell Division opened 50 gross new restaurants across 10 countries. Taco Bell U.S. system sales grew 6% and Taco Bell International system sales excluding foreign currency translation, grew 11%. Taco Bell U.S. and Taco Bell International same-store sales both grew 4%. Taco Bell U.S. company-owned restaurant margins were 24.5%, a 110 basis point decrease year-over-year. PIZZA HUT DIVISION Second-Quarter Year-to-Date %/ppts Change %/ppts Change 2025 2024 Reported Ex F/X 2025 2024 Reported Ex F/X Restaurants 19,768 19,864 Even N/A 19,768 19,864 Even N/A System Sales ($MM) 3,116 3,140 (1) (1) 6,144 6,307 (3) (2) Same-Store Sales Growth (%) (1) (3) NM NM (1) (5) NM NM Franchise and Property Revenues ($MM) 147 148 (1) (1) 290 296 (2) (2) Operating Profit ($MM) 80 94 (15) (15) 155 187 (17) (17) Operating Margin (%) 33.5 39.3 (5.8) (5.7) 32.9 39.2 (6.3) (6.1) Second-Quarter (% Change) Year-to-Date (% Change) International U.S. International U.S. System Sales Growth Ex F/X +2 (6) +1 (7) Same-Store Sales Growth +2 (5) +1 (5) Pizza Hut Division opened 254 gross new restaurants across 32 countries. Pizza Hut Division operating profit growth was negatively impacted in the quarter by 3 percentage points due to timing of technology spending within Franchise advertising and other services expense, 2 percentage points due to expense associated with three franchise entities that are transitioning to new ownership and 2 percentage points due to expenses associated with our bi-annual Global Franchise Convention. Foreign currency translation had a negligible impact on operating profit. Pizza Hut Markets1 Percent of Pizza HutSystem Sales2 System Sales Growth Ex F/X Second-Quarter(% Change) Year-to-Date(% Change) United States 42% (6) (7) China 18% +1 Even Asia 13% +7 +5 Europe 11% Even (2) Latin America 7% Even (3) Middle East / Africa 4% +9 +11 Canada 3% Even +3 India 2% +2 +5 HABIT BURGER & GRILL DIVISION Habit Burger & Grill Division opened 1 gross new restaurant. Habit Burger & Grill Division system sales declined 1% with same-store sales declining 4%. OTHER ITEMS See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Special Items by financial statement line item including the impact of Special Items on General and administrative expenses. Disclosures pertaining to outstanding debt in our Restricted Group capital structure will be provided at the time of the filing of the second-quarter Form 10-Q. LONG-TERM GROWTH ALGORITHM The Company targets the following long-term financial performance metrics, first announced in 2022, that it believes it can achieve over an extended period of time, on average: 5% Unit Growth 7% System Sales Growth, excluding F/X and 53rd week; and At least 8% Core Operating Profit Growth, excluding F/X and 53rd week3 1 Refer to for a list of the countries within each of the markets. 2 Reflects Full Year 2024. 3 At this time, we are unable to forecast any Special Items or any impact from changes in F/X rates, and therefore cannot provide an estimate of Operating Profit Growth on a GAAP basis. CONFERENCE CALL Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 8:15 a.m. Eastern Time August 5, 2025. The number is 404/975-4839 for U.S. callers, 833/950-0062 for Canada callers, and +1/404-975-4839 for international callers, conference ID 362231. The call will be available for playback beginning at 10:00 a.m. Eastern Time August 5, 2025 through August 12, 2025. To access the playback, dial 866/813-9403 in the U.S., 226/828-7578 in Canada, and +1/929-458-6194 internationally, conference ID 252965. The webcast and the playback can be accessed by visiting Yum! Brands' website, and selecting "Q2 2025 Yum! Brands, Inc. Earnings Conference Call." ADDITIONAL INFORMATION ONLINE Quarter-end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included in our Condensed Consolidated Summary of Results. FORWARD-LOOKING STATEMENTS This announcement may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "likely," "seek," "project," "model," "ongoing," "will," "should," "forecast," "outlook" or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food- or beverage-borne illness concerns; adverse impacts of health epidemics, deterioration in public health conditions or the occurrence of other catastrophic or unforeseen events; the success and financial stability of our concepts' franchisees, particularly in light of challenging macroeconomic conditions; the success of our development strategy; anticipated benefits from past or potential future acquisitions, investments, other strategic transactions or initiatives, or our portfolio business model; our significant exposure to the Chinese market; our global operations and related exposure to geopolitical instability, including as a result of the Middle East conflict as well as the expansion or threatened expansion of restrictive trade policies which could also impact sentiment for U.S. brands; foreign currency risks and foreign exchange controls; our ability to protect the integrity or availability of IT systems or the security of confidential information and other cybersecurity risks; compliance with data privacy and data protection legal requirements and reporting obligations; our ability to successfully and securely implement technology initiatives, including utilization of artificial intelligence; our increasing dependence on digital commerce platforms; the impact of social media; our ability to protect our trademarks or other intellectual property; shortages or interruptions in the availability and the delivery of food, equipment and other supplies; the loss of key personnel or failure to successfully transition senior management, labor shortages and increased labor costs, including as a result of state and local legislation related to wages and working conditions; changes in food prices and other operating costs; our corporate reputation, the value and perception of our brands and changes in consumer preferences such as wellness trends; evolving expectations and requirements with respect to social and environmental sustainability matters; adverse effects of severe weather and climate change; pending or future litigation and legal claims or proceedings; changes in, or noncompliance with, legal requirements; tax matters, including changes in tax rates or laws, impositions of new taxes, tax implications of our restructurings, or disagreements with taxing authorities; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and elevated interest rates; competition within the retail food industry; and risks relating to our level of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results. Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 61,000 restaurants in more than 155 countries and territories under the company's concepts – KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. The Company's KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-inspired food and pizza categories, respectively. Habit Burger & Grill is a fast casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2024, Yum! was named to the Dow Jones Sustainability Index North America and 3BL's list of 100 Best Corporate Citizens. In 2025, the Company was recognized among TIME magazine's list of Best Companies for Future Leaders. In addition, KFC, Taco Bell and Pizza Hut led Entrepreneur's Top Global Franchises 2024 list and were ranked in the first 25 of Entrepreneur's 2025 Franchise 500, with Taco Bell securing the No. 1 spot in North America for the fifth consecutive year. Category: Earnings View source version on Contacts Analysts are invited to contact:Matt Morris, Head of Investor Relations at 888/298-6986 Members of the media are invited to contact:Lori Eberenz, Director, Public Relations, at 502/874-8200 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-07-2025
- Business
- Yahoo
Albertsons Companies, Inc. Reports First Quarter Fiscal 2025 Results
BOISE, Idaho, July 15, 2025--(BUSINESS WIRE)--Albertsons Companies, Inc. (NYSE: ACI) (the "Company") today reported results for the first quarter of fiscal 2025, which ended June 14, 2025. First Quarter of Fiscal 2025 Highlights Identical sales increased 2.8% Digital sales increased 25% Loyalty members increased 14% to 47.3 million Net income of $236 million, or $0.41 per share Adjusted net income of $319 million, or $0.55 per share Adjusted EBITDA of $1,111 million "In the first quarter, we delivered solid operating and financial performance, while investing in our core operations and improving our customer value proposition," said Susan Morris, Chief Executive Officer. "Ongoing investments in our strategic priorities drove increased engagement across our digital platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program. To fuel these investments, we leveraged our productivity engine to drive efficiencies throughout our operations." Morris added, "As we look forward to the balance of fiscal 2025, we do so with continued confidence in our Customers for Life strategy. We want to thank our teams for delivering these results and for their ongoing commitment to serving our customers and supporting the communities in which we operate." First Quarter of Fiscal 2025 Results Net sales and other revenue increased 2.5% to $24,880.8 million for the 16 weeks ended June 14, 2025 ("first quarter of fiscal 2025") from $24,265.4 million during the 16 weeks ended June 15, 2024 ("first quarter of fiscal 2024"). This increase was driven by a 2.8% increase in identical sales, with strong growth in pharmacy sales being the primary driver of the identical sales increase. We also continued to grow our digital sales with a 25% increase during the first quarter of fiscal 2025. These increases in Net sales and other revenue were partially offset by lower fuel sales. Gross margin rate decreased to 27.1% during the first quarter of fiscal 2025 compared to 27.8% during the first quarter of fiscal 2024. Excluding the impact of fuel and LIFO expense, gross margin rate decreased 85 basis points compared to the first quarter of fiscal 2024. This decrease in gross margin rate was primarily driven by incremental investments in our customer value proposition, strong growth in pharmacy sales, which carries an overall lower gross margin rate, and increases in delivery and handling costs related to the continued growth in our digital sales, partially offset by the benefits from our productivity initiatives, which included reductions in shrink expense. Selling and administrative expenses decreased to 25.4% of Net sales and other revenue during the first quarter of fiscal 2025 compared to 25.9% during the first quarter of fiscal 2024. Excluding the impact of fuel, Selling and administrative expenses as a percentage of Net sales and other revenue decreased 63 basis points. This decrease in Selling and administrative expenses as a percentage of Net sales and other revenue was primarily attributable to lower merger-related costs, the leveraging of employee costs and operating expenses related to the continued development of our digital platforms and modernization of our technology, partially offset by increases in legal, professional and outside services as well as business transformation costs. The benefits from our productivity initiatives continue to help offset increasing wage rates and other inflationary pressures on our operating expenses. Net gain on property dispositions and impairment losses was $31.9 million during the first quarter of fiscal 2025 compared to net loss of $5.3 million during the first quarter of fiscal 2024. Interest expense, net was $141.8 million during the first quarter of fiscal 2025 compared to $145.7 million during the first quarter of fiscal 2024. This decrease in interest expense, net was primarily attributable to lower average outstanding borrowings. Other income, net was $3.9 million during the first quarter of fiscal 2025 compared to other expense, net of $4.0 million during the first quarter of fiscal 2024. Income tax expense was $75.0 million during the first quarter of fiscal 2025, representing a 24.1% effective tax rate, compared to $69.2 million during the first quarter of fiscal 2024, representing a 22.3% effective tax rate. This increase in the effective rate was primarily driven by the reduction of a reserve for an uncertain tax position due to the expiration of a state statute in the first quarter of fiscal 2024. Net income was $236.4 million, or $0.41 per share, during the first quarter of fiscal 2025, compared to $240.7 million, or $0.41 per share, during the first quarter of fiscal 2024. Adjusted net income was $318.9 million, or $0.55 per share, during the first quarter of fiscal 2025, compared to $391.6 million, or $0.66 per share, during the first quarter of fiscal 2024. Adjusted EBITDA was $1,111.0 million, or 4.5% of Net sales and other revenue, during the first quarter of fiscal 2025 compared to $1,183.9 million, or 4.9% of Net sales and other revenue, during the first quarter of fiscal 2024. Capital Allocation and Common Stock Repurchase Program During the first quarter of fiscal 2025, capital expenditures were $584.6 million, which primarily included the completion of 36 remodels, the opening of three new stores and continued investment in our digital and technology platforms. During the first quarter of fiscal 2025, the Company paid its quarterly dividend of $0.15 per share on May 9, 2025 to stockholders of record as of April 25, 2025. On July 15, 2025, the Company announced the next quarterly dividend payment of $0.15 per share to be paid on August 8, 2025 to stockholders of record as of the close of business on July 25, 2025. During the first quarter of fiscal 2025, the Company repurchased 14.2 million shares of common stock for a total of $314.8 million pursuant to the existing multi-year $2.0 billion repurchase authorization. On March 11, 2025, the Company completed the issuance of $600.0 million in aggregate principal amount of 6.250% senior unsecured notes due March 15, 2033 (the "2033 Notes"). On March 17, 2025, proceeds from the 2033 Notes were used to redeem in full the $600.0 million outstanding of 7.500% senior unsecured notes due March 15, 2026. Fiscal 2025 Outlook The Company is providing an updated fiscal 2025 outlook and expects its financial results to be as follows: Identical sales growth in the range of 2.0% to 2.75% (previously 1.5% to 2.5%) Adjusted EBITDA in the range of $3.8 billion to $3.9 billion, including approximately $65 million related to the Company's 53rd week (unchanged) Adjusted net income per Class A common share in the range of $2.03 to $2.16 per share (unchanged) Effective income tax rate in the range of 23.5% to 24.5% (unchanged) Capital expenditures in the range of $1.7 billion to $1.9 billion (unchanged) The Company is unable to provide a full reconciliation of the GAAP and Non-GAAP Measures (as defined below) used in the updated fiscal 2025 outlook without unreasonable effort because it is not possible to predict certain of the adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of the Company's control and could have a significant impact on its GAAP financial results for fiscal 2025. The expected effective tax rate does not reflect potential future rate adjustments for the resolution of tax audits or potential changes in tax laws, which cannot be predicted with reasonable certainty. Conference Call The Company will hold a conference call today at 8:30 a.m. Eastern Time, which will be hosted by Susan Morris, CEO, and Sharon McCollam, President & CFO. The call will be webcast and can be accessed at A replay of the webcast will be available for at least two weeks following the completion of the call. About Albertsons Companies Albertsons Companies is a leading food and drug retailer in the United States. As of June 14, 2025, the Company operated 2,264 retail stores with 1,725 in-store pharmacies, 408 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 35 states and the District of Columbia under 22 well known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2024, along with the Albertsons Companies Foundation, the Company contributed more than $435 million in food and financial support, including more than $40 million through our Nourishing Neighbors Program to ensure those living in our communities and those impacted by disasters have enough to eat. Albertsons, Safeway, Vons, Jewel-Osco, Tom Thumb, Randalls, United Supermarkets, Pavilions, Haggen and Balducci's Food Lovers Market are registered trademarks of Albertsons Companies Inc. or its subsidiaries. ACME, Carrs, Kings Food Markets, Shaw's, and Star Market are trademarks of Albertsons Companies Inc. or its subsidiaries. Albertsons associated logos, product names and services are trademarks of Albertsons Companies, Inc. All other trademarks are the property of their respective owners. Forward-Looking Statements and Factors That Impact Our Operating Results and Trends This press release includes "forward-looking statements" within the meaning of the federal securities laws. The "forward-looking statements" include our current expectations, assumptions, estimates and projections about our business and our industry. They include statements relating to our future operating or financial performance which the Company believes to be reasonable at this time. You can identify forward-looking statements by the use of words such as "outlook," "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends" and similar expressions which are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements. Risks and uncertainties that could cause actual results to differ materially from such statements and may adversely impact our financial condition and results of operations include: changes in macroeconomic conditions such as rates of food price inflation or deflation, fuel and commodity prices and uncertainty in international trade including current and potential future tariffs; changes in consumer behavior and spending patterns resulting from macroeconomic conditions, including shifts in state and federal assistance programs; changes in wage rates and our ability to negotiate acceptable contracts with labor unions, including the outcome of pending union negotiations; changes in price of goods sold in our stores and cost of goods used in our food products due to changes in various state and federal government regulations; uncertainty regarding the geopolitical environment; our inability to execute on our standalone business and value-creating strategies following the termination of the merger agreement with Kroger due to prolonged uncertainties and restrictions on our business during the pendency of the merger; litigation in connection with the previously pending merger and the termination of the merger agreement, resulting in ongoing costs that we may be required to pay in connection with the lawsuit against Kroger, or our inability to collect the $600 million termination fee from Kroger, and negative reactions from the financial markets and our suppliers, customers, and associates as a result of the litigation; our ability to recruit and retain qualified associates who are critical to the success of our Customers for Life strategy; failure to achieve productivity initiatives, unexpected changes in our objectives and plans, inability to implement our strategies, plans, programs and initiatives, or enter into strategic transactions, investments or partnerships in the future on terms acceptable to us, or at all; challenges with our supply chain; operational and financial effects resulting from cyber incidents at the Company or at a third party, including outages in the cloud environment and the effectiveness of business continuity plans during a ransomware or other cyber incident; and changes in tax rates, tax laws, and regulations that directly impact our business or our customers. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In evaluating our financial results and forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the "Risk Factors" section or other sections in our reports filed with the SEC including the most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Non-GAAP Measures and Identical Sales Non-GAAP Measures. EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share and Net debt ratio (collectively, the "Non-GAAP Measures") are performance measures that provide supplemental information the Company believes is useful to analysts and investors to evaluate its ongoing results of operations, when considered alongside other GAAP measures such as net income, operating income, gross margin, and net income per Class A common share. These Non-GAAP Measures exclude the financial impact of items management does not consider in assessing the Company's ongoing core operating performance, and thereby provide useful measures to analysts and investors of its operating performance on a period-to-period basis. Other companies may have different definitions of Non-GAAP Measures and provide for different adjustments, and comparability to the Company's results of operations may be impacted by such differences. The Company also uses Adjusted EBITDA and Net debt ratio for board of director and bank compliance reporting. The Company's presentation of Non-GAAP Measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. Identical Sales. As used in this earnings release, the term "identical sales" includes stores operating during the same period in both the current fiscal year and the prior fiscal year, comparing sales on a daily basis. Direct to consumer digital sales are included in identical sales, and fuel sales are excluded from identical sales. Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (dollars in millions, except per share data) (unaudited) 16 weeks ended June 14, 2025 June 15, 2024 Net sales and other revenue $ 24,880.8 $ 24,265.4 Cost of sales 18,142.5 17,526.5 Gross margin 6,738.3 6,738.9 Selling and administrative expenses 6,320.9 6,274.0 (Gain) loss on property dispositions and impairment losses, net (31.9 ) 5.3 Operating income 449.3 459.6 Interest expense, net 141.8 145.7 Other (income) expense, net (3.9 ) 4.0 Income before income taxes 311.4 309.9 Income tax expense 75.0 69.2 Net income $ 236.4 $ 240.7 Net income per Class A common share Basic net income per Class A common share $ 0.41 $ 0.42 Diluted net income per Class A common share 0.41 0.41 Weighted average Class A common shares outstanding (in millions) Basic 573.0 578.6 Diluted 575.4 581.3 % of net sales and other revenue Gross margin 27.1 % 27.8 % Selling and administrative expenses 25.4 % 25.9 % Store data Number of stores at end of quarter 2,264 2,269 Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions) (unaudited) June 14, 2025 February 22, 2025 ASSETS Current assets Cash and cash equivalents $ 151.0 $ 293.6 Receivables, net 908.9 834.8 Inventories, net 4,976.3 4,989.0 Other current assets 380.7 441.6 Total current assets 6,416.9 6,559.0 Property and equipment, net 9,708.0 9,811.0 Operating lease right-of-use assets 6,174.7 6,153.4 Intangible assets, net 2,281.1 2,318.0 Goodwill 1,201.0 1,201.0 Other assets 688.1 713.3 TOTAL ASSETS $ 26,469.8 $ 26,755.7 LIABILITIES Current liabilities Accounts payable $ 3,834.1 $ 4,092.7 Accrued salaries and wages 1,273.3 1,345.2 Current maturities of long-term debt and finance lease obligations 832.1 57.6 Current operating lease obligations 720.3 705.5 Other current liabilities 1,208.1 1,050.0 Total current liabilities 7,867.9 7,251.0 Long-term debt and finance lease obligations 7,005.6 7,762.5 Long-term operating lease obligations 5,756.4 5,657.2 Deferred income taxes 783.8 824.1 Other long-term liabilities 1,831.8 1,875.0 Commitments and contingencies STOCKHOLDERS' EQUITY Class A common stock 6.0 6.0 Additional paid-in capital 2,188.0 2,184.0 Treasury stock, at cost (701.5 ) (386.7 ) Accumulated other comprehensive income 94.3 94.7 Retained earnings 1,637.5 1,487.9 Total stockholders' equity 3,224.3 3,385.9 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 26,469.8 $ 26,755.7 Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) 16 weeks ended June 14, 2025 June 15, 2024 Cash flows from operating activities: Net income $ 236.4 $ 240.7 Adjustments to reconcile net income to net cash provided by operating activities: (Gain) loss on property dispositions and impairment losses, net (31.9 ) 5.3 Depreciation and amortization 572.7 552.0 Operating lease right-of-use assets amortization 214.1 207.6 LIFO expense 17.3 14.6 Deferred income tax (38.0 ) (56.3 ) Contributions to pension and post-retirement benefit plans, net of expense (income) (43.0 ) (10.9 ) Deferred financing costs 6.3 4.9 Equity-based compensation expense 33.7 36.7 Other operating activities 4.1 6.0 Changes in operating assets and liabilities: Receivables, net (73.2 ) (84.5 ) Inventories, net (4.5 ) 210.7 Accounts payable, accrued salaries and wages and other accrued liabilities (114.6 ) (304.0 ) Operating lease liabilities (127.8 ) (125.9 ) Self-insurance assets and liabilities (6.0 ) 21.5 Other operating assets and liabilities 108.8 242.5 Net cash provided by operating activities 754.4 960.9 Cash flows from investing activities: Payments for property, equipment and intangibles, including lease buyouts (584.6 ) (543.0 ) Proceeds from sale of assets 78.2 3.8 Other investing activities 32.3 1.2 Net cash used in investing activities (474.1 ) (538.0 ) Cash flows from financing activities: Proceeds from issuance of long-term debt, including ABL facility 625.0 — Payments on long-term borrowings, including ABL facility (600.2 ) (200.2 ) Payments of obligations under finance leases (10.1 ) (12.5 ) Dividends paid on common stock (85.7 ) (69.5 ) Treasury stock purchase, at cost (314.8 ) — Employee tax withholding on vesting of restricted stock units (31.4 ) (38.6 ) Other financing activities (5.7 ) — Net cash used in financing activities (422.9 ) (320.8 ) Net (decrease) increase in cash and cash equivalents and restricted cash (142.6 ) 102.1 Cash and cash equivalents and restricted cash at beginning of period 297.9 193.2 Cash and cash equivalents and restricted cash at end of period $ 155.3 $ 295.3 Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) The following table reconciles Net income to Adjusted net income and Adjusted EBITDA (in millions): 16 weeks ended June 14, 2025 June 15, 2024 Net income $ 236.4 $ 240.7 Adjustments: Business transformation (1)(b) 38.3 17.3 Equity-based compensation expense (b) 33.7 36.7 (Gain) loss on property dispositions and impairment losses, net (31.9 ) 5.3 LIFO expense (a) 17.3 14.6 Merger-related costs (2)(b) 19.0 92.3 Certain legal and regulatory accruals and settlements, net (b) 2.6 (8.9 ) Amortization of debt discount and deferred financing costs (c) 6.2 4.9 Amortization of intangible assets resulting from acquisitions (b) 14.8 14.7 Miscellaneous adjustments (3)(e) 6.1 19.0 Tax impact of adjustments to Adjusted net income (23.6 ) (45.0 ) Adjusted net income $ 318.9 $ 391.6 Tax impact of adjustments to Adjusted net income 23.6 45.0 Income tax expense 75.0 69.2 Amortization of debt discount and deferred financing costs (c) (6.2 ) (4.9 ) Interest expense, net 141.8 145.7 Amortization of intangible assets resulting from acquisitions (b) (14.8 ) (14.7 ) Depreciation and amortization (d) 572.7 552.0 Adjusted EBITDA $ 1,111.0 $ 1,183.9 The following tables reconcile diluted net income per Class A common share to Adjusted net income per Class A common share (in millions, except per share data): 16 weeks ended June 14, 2025 June 15, 2024 Numerator: Adjusted net income (4) $ 318.9 $ 391.6 Denominator: Weighted average Class A common shares outstanding - diluted 575.4 581.3 Restricted stock units (5) 8.5 9.3 Adjusted weighted average Class A common shares outstanding - diluted 583.9 590.6 Adjusted net income per Class A common share - diluted $ 0.55 $ 0.66 Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) 16 weeks ended June 14, 2025 June 15, 2024 Net income per Class A common share - diluted $ 0.41 $ 0.41 Non-GAAP adjustments (6) 0.15 0.26 Restricted stock units (5) (0.01 ) (0.01 ) Adjusted net income per Class A common share - diluted $ 0.55 $ 0.66 (1) Includes costs associated with third-party consulting fees related to our Customers for Life strategy and employee termination costs. (2) The first quarter of fiscal 2025 primarily relates to litigation costs and retention program expense related to the terminated merger. The first quarter of fiscal 2024 primarily includes third-party legal and advisor fees and retention program expense related to the merger. (3) Primarily includes net realized and unrealized gains and losses related to non-operating investments, lease adjustments related to non-cash rent expense and costs incurred on leased surplus properties, gains and losses on energy hedges and other items not considered in our core performance. (4) See the reconciliation of Net income to Adjusted net income above for further details. (5) Represents incremental unvested restricted stock units ("RSUs") to adjust the diluted weighted average Class A common shares outstanding during each respective period to the fully outstanding RSUs as of the end of each respective period. (6) Reflects the per share impact of Non-GAAP adjustments for each period. See the reconciliation of Net income to Adjusted net income above for further details. Non-GAAP adjustment classifications within the Condensed Consolidated Statements of Operations: (a) Cost of sales (b) Selling and administrative expenses (c) Interest expense, net (d) Depreciation and amortization: 16 weeks ended June 14, 2025 June 15, 2024 Cost of sales $ 64.1 $ 53.6 Selling and administrative expenses 508.6 498.4 Total Depreciation and amortization $ 572.7 $ 552.0 (e) Miscellaneous adjustments: 16 weeks ended June 14, 2025 June 15, 2024 Cost of sales $ (0.5 ) $ 0.1 Selling and administrative expenses 5.6 11.5 Other (income) expense, net 1.0 7.4 Total Miscellaneous adjustments $ 6.1 $ 19.0 Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions) The following table is a reconciliation of Net Debt Ratio on a rolling four quarter basis: June 14, 2025 June 15, 2024 Total debt (including finance leases) $ 7,837.7 $ 7,857.4 Cash and cash equivalents 151.0 291.1 Total debt net of cash and cash equivalents 7,686.7 7,566.3 Rolling four quarters Adjusted EBITDA $ 3,931.8 $ 4,183.1 Total Net Debt Ratio 1.96 1.81 The following table is a reconciliation of Net income to Adjusted EBITDA on a rolling four quarter basis: Rolling four quarters ended June 14, 2025 June 15, 2024 Net income $ 954.3 $ 1,119.5 Depreciation and amortization 1,838.6 1,800.4 Interest expense, net 455.9 482.9 Income tax expense 176.9 296.1 EBITDA 3,425.7 3,698.9 Business transformation (1) 126.2 50.3 Equity-based compensation expense 103.2 109.3 Loss on property dispositions and impairment losses, net 58.6 21.6 LIFO expense 31.3 32.6 Merger-related costs (2) 181.5 225.8 Certain legal and regulatory accruals and settlements, net 17.6 (15.6 ) Miscellaneous adjustments (3) (12.3 ) 60.2 Adjusted EBITDA $ 3,931.8 $ 4,183.1 (1) Includes costs associated with third-party consulting fees related to our Customers for Life strategy and employee termination costs. (2) Primarily includes third-party legal and advisor fees and retention program expense related to the merger. Also includes litigation costs related to the termination of the merger in December 2024. (3) Primarily includes net realized and unrealized gains and losses related to non-operating investments, lease adjustments related to non-cash rent expense and costs incurred on leased surplus properties, pension settlement loss, gains and losses on energy hedges and other items not considered in our core performance. View source version on Contacts media@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
19-06-2025
- Entertainment
- Forbes
Nicki Minaj Makes History With Her Brand New Top 10 Bestseller
Nicki Minaj ranks among the most successful hip-hop artists of all time, but she stands apart from many of her contemporaries in one important way. She consistently sells individual songs in addition to seeing her catalog perform spectacularly on streaming platforms. While most of the biggest names in rap focus on racking up huge numbers on sites like Spotify and Apple Music, Minaj remains a relatively rare force when it comes to digital sales as well. Minaj's fans have demonstrated time and again that they are willing to purchase her tracks – all of them, seemingly no matter what. The continued buying habits of the Barbz — the name associated with her fanbase — helps the rapper make history this week as she scores a brand new hit. Minaj recently joined Lil Wayne on a remix of his tune "Banned From NO," a track featured on his latest album Tha Carter VI. Initially released as a solo affair, the cut was later updated to include her vocals as well. The duet arrived on streaming platforms and digital storefronts just days after the original, and Minaj's following reacted quickly. This week, "Banned From NO" debuts at No. 1 on the Rap Digital Song Sales chart. As it lands, Minaj collects her twenty-fourth No. 1 and, perhaps more notably, her milestone one hundredth top 10 smash on the list of the bestselling rap-only tracks in the United States. Minaj is now one of a very select few artists to rack up triple-digit placements inside the top 10 on the Rap Digital Song Sales tally. In fact, she may be only the second act to do so. Drake, a frequent collaborator, has so far scored 135 placements between Nos. 1 and 10 on the tally, which previously featured more than 10 spaces, but which was shortened several years ago. Several other superstars may reach 100 top 10s on the Rap Digital Song Sales chart in the coming years, but they still have a ways to go. Eminem is up to 77 such wins, while Lil Wayne collects his seventy-fifth as "Banned From NO" arrives. Kanye West, now known simply as Ye, has also surpassed the 50 top 10s milestone, with a total of 53 such smashes in his catalog. Other well-known figures in the industry haven't even claimed half of 100 yet. "Banned From NO" launches atop the Rap Digital Song Sales chart with 5,000 pure purchases, according to Luminate. The track, as a duet, also reaches a trio of purchase-only tallies, opening inside the top five on all three simultaneously.
Forbes
31-05-2025
- Business
- Forbes
Eminem Joins Kendrick Lamar With Multiple Top 10 Bestsellers
Eminem's 'Shake That' returns to the R&B/Hip-Hop Digital Song Sales chart, joining 'Lose Yourself' ... More as the rapper doubles up on the tally. UNSPECIFIED - JANUARY 01: Photo of EMINEM (Photo by Sal Idriss/Redferns) Eminem stands out from so many other rappers thanks to his ability to continuously sell music from his catalog, and not just see it perform well on streaming platforms. He demonstrates that ability again this week, as one of his singles returns to a Billboard list focused solely on pure purchases, and it joins one of his all-time classics in doing so. The rapper matches one of the most exciting superstars in his chosen field today as he doubles up on the tally. "Shake That," Eminem's collaboration with Nate Dogg, returns to the R&B/Hip-Hop Digital Song Sales chart this week. The cut barely manages to reenter the ranking of the bestselling tunes that can be classified as R&B, rap, or hip-hop in the U.S., landing in last place. "Shake That" joins "Lose Yourself," which lifts one space to No. 7. As "Shake That" returns, Eminem joins Kendrick Lamar as the only two musicians to occupy more than one space on the R&B/Hip-Hop Digital Song Sales list. Lamar claims twice as many current wins as Eminem, with four current smashes. Lamar also manages to rank higher than Eminem this period – though both of the latter musician's current bestsellers are much, much older than Lamar's. His tunes "Luther" with SZA, "Not Like Us," and "Put TV Off" with Lefty Gunplay and 'Squabble Up' appear at Nos. 4, 6, 9, and 11, respectively. A number of other hip-hop powerhouses manage to remain on the R&B/Hip-Hop Digital Song Sales chart as well, but at the moment, none fill more than a single space. "Anxiety" by Doechii leads for its fourth frame, which represents the entirety of its time on the roster. Drake's former No. 1 "Nokia" dips to third place, landing just ahead of Lamar's highest-rising success. Several other well-known figures like The Weeknd, Playboi Carti, and Pharrell Williams also take up space with former champions. "Shake That" was released decades ago, but has recently surged in popularity after going viral. The tune peaked at No. 8 earlier this month and is one of Eminem's 69 top 10 hits on the tally. "Lose Yourself," which has now spent 468 frames somewhere on this roster, has somehow only ever peaked at No. 2.
