Yum! Brands income up 18% in quarter
October 07, 2009
by FoodBusinessNews.net Staff
LOUISVILLE, KY. — With significant growth in China contributing to results, income for Yum! Brands, Inc. was up 18% for the quarter ended Sept. 5.
Income for the third quarter was $334 million, equal to 71c per share on the common stock, which compared with $282 million, or 60c per share, during the same quarter of the previous year. Total revenue for the quarter was $2,778 million, down 2% from $2,842 million, during the same quarter of the previous year.
"Our China business generated extraordinary operating profit growth of 32% in the quarter," said David C. Novak, chairman and chief executive officer. "We leveraged our high-return, new unit development and increased restaurant margin over two points. We are especially pleased that our China team achieved margins near record levels with high average unit volumes. …There’s no question the overall worldwide environment continues to be challenging. However, we are more confident than ever in the consistent earnings power of our global portfolio. We also continue to make major progress developing our significant, new sales layers that will better leverage our assets and drive future growth."
For the nine months ended Sept. 5, the company had income of $855 million, up 12% from $760 million during the same period of the previous year. During the period the company also had revenue of $7,471 million, down 6% from $7,914 million during the same period of the previous year.
For the full-year 2010, the company raised its forecast to $2.14 per share from $2.10 as the result of strong performance in China and a lower-than-expected full-year effective tax rate.