Yum! Rides High on China

Yum! Brands Inc. (NYSE: YUM) reported fiscal third quarter adjusted earnings per share (EPS) of $0.99 on revenue of $3.57 billion. In the same period a year ago, the operator of KFC, Pizza Hut, and Taco Bell reported adjusted EPS of $0.83 on revenue of $2.2 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.97 EPS and $3.64 billion in revenue.

The company's chairman/CEO said:

Very strong sales and profit at all of our divisions, including China, Yum! Restaurants International, India and the U.S., drove 19% third-quarter EPS growth. Given the strength of our year-to-date results, I'm pleased to report we are raising our full-year EPS growth forecast to at least 13%, excluding Special Items.

Yum! raised its full-year 2012 adjusted EPS forecast to "at least $3.24." The consensus estimate had called for EPS of $3.26.

In China, the company opened 192 new stores and expects to open a total of at least 750 this year. Sales in China rose by a total of 22% on a constant currency basis and same-store sales rose 6%. Foreign exchange rates added $5 million to operating profits in China.

International sales were up 4% on a system wide basis and U.S. same-store sales rose 6%. In India, system-wide sales rose 29% and same-store sales rose 5%. The company expects to open more than 1,750 new stores outside the U.S. in 2012, including the 750 on tap for China.

Yum's shares are up about 3.7% in after-hours trading at $68.47. The 52-week range is $49.72 to $74.44. Thomson Reuters had a consensus analyst price target of around $76.50 before today's report.

Paul Ausick

Read Full Story
  • DJI25502.32-460.18-1.77%
  • NIKKEI 22520977.11-650.23-3.01%
    Hang Seng28523.35-590.01-2.03%
  • USD (PER EUR)1.130.00220.19%
    USD (PER CHF)1.01-0.0011-0.11%
    JPY (PER USD)110.230.32000.29%
    GBP (PER USD)1.32-0.0042-0.32%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.