International growth boosts Yum! Brand's profit 11%
July 12, 2007
by FoodBusinessNews.net Staff
LOUISVILLE, KY. — Yum! Brands Inc. posted net income of $214 million in the quarter ended June 16, equal to 41c per share on the common stock, up 11% from $192 million, or 35c per share, during the same quarter of the previous year.
Total revenues were $2,367,000,000, up 8% compared with $2,182,000,000 during the same quarter of the previous year.
Worldwide system same-store sales grew 2%, which included a 7% growth in mainland China and 5% growth in the Yum! Restaurants International Division. Mainland China restaurant unit growth was 19%.
"This global growth will contribute to Yum! Brands’ seventh straight year of opening at least 1,000 new restaurants outside the U.S.," said David C. Novak, chairman and chief executive officer. "Importantly, we anticipate this pace of development will be maintained into the future."
However, U.S. results were less robust with flat system same-store sales and a 2% decrease in operating profit to $191 million for the quarter.
"In the U.S. we are making steady progress toward a full recovery with improving sales results across our brands in the second quarter," Mr. Novak said. "We continue to expect to generate positive growth in our second-half results after a first half decline in sales and profits. Overall for the U.S., we expect full-year operating profit growth to be slightly positive."
The company also has raised its full-year earnings per share growth forecast to 12% from 11% due to international growth. The full-year e.p.s. forecast is $1.63 per share.