Yum! Brands income up 6% in year

by FoodBusinessNews.net Staff
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LOUISVILLE, KY. — For the year ended Dec. 27, Yum! Brands, Inc. had net income of $964 million, equal to $2.03 per share on the common stock, up 6% from $909 million, or $1.74 per share, during the previous year. Sales for the quarter were $9,843 million, up 8% from $9,100 million during the previous year.

"The good news is that we have already taken actions to significantly improve our 2009 cost structure in the U.S. and at the corporate level," said David C. Novak, chairman and chief executive officer. "We are also more focused than ever on bringing innovative incremental sales layers and values to our consumers around the globe. In 2008, this included the successful launches of the Tuscani pasta line at Pizza Hut and the ‘Why Pay More?’ menu and Frutista Freeze line of beverages at Taco Bell. For 2009, we will continue to build on these successful new sales layers with product additions as well as create new sales layers such as Kentucky Grilled Chicken at KFC."

For the quarter ended Dec. 27, income was $204 million, or 44c per share, down 12% from $231 million, or 45c per share, during the same quarter of the previous year. Sales for the quarter were $2,944 million, up 4% from $2,842 million during the same quarter of the previous year.

The company also expects earnings per share growth of at least 10% to $2.10 per share for the full-year 2009.

"As we go into 2009, we continue to target at least 10% growth in e.p.s. while recognizing that in particular the U.S. consumer is under extreme financial pressure, making sales growth more difficult to achieve than in recent times," Mr. Novak said. "This is particularly evident for the higher guest check dinner occasion. Nevertheless, we remain confident the power of our global portfolio will enable us to once again perform relatively well in what promises to be a challenging environment."

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