Income for Yum! Brands up 11% in year
February 4, 2010
LOUISVILLE, KY. — Despite a small decrease in overall revenue, international growth in China helped boost income for Yum! Brands, Inc. by 11% in 2009.
For the year ended Dec. 26, 2009, Yum! Brands posted income of $1,071 million, equal to $2.28 per share on the common stock, which compared with $964 million, or $2.03 per share, during the previous year.
Sales for the year were $9,413 million, down 4% from $9,843 million during fiscal 2008.
“We are in the enviable position of having powerful brands and unmatched unit economics in China as evidenced by KFC’s $1.4 million average unit volumes and restaurant margins of over 20%,” said David C. Novak, chairman and chief executive officer. “There is no question we are in the early innings of profitable expansion in this massive and rapidly growing economy. We are also making progress creating major new growth vehicles by investing in India, Russia and France and beginning to develop Taco Bell into a truly global brand. At the same time, we are aggressively developing incremental sales layers, including breakfast, new beverages and expanded protein options. Our goal is to provide more meaningful menu variety to our customers and leverage our assets throughout the day.”
Operating profit for the China division was $602 million, up 25% from $480 million during the previous year. Sales in the China division were $3,622 million, up 18% from $3,058 million during the previous year.
For the fourth quarter ended Dec. 26, income for the company as a whole was $216 million, or 46c per share, up 6% from $204 million, or 44c per share, during the same quarter of the previous year. Sales in the quarter were $2,911 million, down 1% from $2,944 million.
“In 2010, we once again expect to achieve our annual target of at least 10% e.p.s. growth,” Mr. Novak said. “Our profitable international new unit development will be a key driver of our growth as we execute against our obvious short-term challenge of driving same-store sales growth. I am confident that our teams around the world will continue to build on our track record of consistent double-digit e.p.s. growth.”