Yum! Brands income rises 35% in quarter
July 17, 2009
by FoodBusinessNews.net Staff
LOUISVILLE, KY. — Income for Yum! Brands, Inc. during the second quarter rose 35%. For the quarter ended June 13 net income was $303 million, equal to 65c per share on the common stock, which compared with $224 million, or 47c per share, during the same quarter of the previous year. Sales for the quarter were $2,152 million, down 7% from $2,323 million during the same quarter of the previous year.
"I am pleased to report second-quarter e.p.s. growth of 10%, before special items," said David C. Novak, chairman and chief executive officer. "Our global portfolio delivered solid performance with system sales growth of 3% and operating profit growth of 11%, prior to foreign currency translation. E.p.s. growth was fueled by operating profit growth in each of our divisions and exceeded our expectations due to a much lower-than-anticipated tax rate. Our industry leading international new unit development continues to be a major driver of operating performance in both China and Yum! Restaurants International. This capability is unique to the industry and helps us consistently achieve our growth targets. I’m proud of the way our teams around the world are executing our growth strategies while capturing productivity opportunities and proactively reducing costs."
For the six months ended June 13 net income was $521 million, or $1.11 per share, up 9% from $478 million, or 99c per share, during the same period of the previous year. Sales during the second quarter were $4,070 million, down 8% from $4,417 million during the same period of the previous year.
The company is maintaining its full-year e.p.s. forecast of $2.10, which represents 10% growth.