Yum! Brands income down 14% in quarter
April 23, 2009
by FoodBusinessNews.net Staff
LOUISVILLE, KY. — Income for Yum! Brands, Inc. was down 14% in the first quarter as continued growth in China did not offset declining sales in the United States.
Income for the quarter ended March 21 was $219 million, equal to 47c per share on the common stock, which compared with $256 million, or 52c per share, during the same quarter of the previous year. Sales for the quarter were $1,918 million, down 8% from $2,094 million during the same quarter o the previous year.
"The power of our global portfolio allowed us to overcome a challenging environment with system sales growth of 4% and operating profit growth of 7% prior to foreign currency translation," said David C. Novak, chairman and chief executive officer. "I’m proud our teams around the world are rising to the challenge by accelerating productivity initiatives and managing costs while we continue to drive and invest in our global growth strategies."
The company had worldwide same-store-sales growth of 1% in the quarter, and international development included 256 new restaurants with 98 of those in mainland China.
"Our goal continues to be to deliver e.p.s. growth of 10% this year in spite of the weak economy," Mr. Novak said. "We forecast the second quarter will likely be Yum’s most challenging quarter and the low point of our year. However, for the full year much lower-than-expected commodity inflation should offset below-target same-store-sales growth."