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Expansion in China helped Yum! Brands post $.70 in earnings per share
July 6, 2009
Pizza Hut parent Yum! Brands Inc. (NYSE: YUM) today reported earnings per share of $.70 for the third quarter that ended Sept. 5, according to a company statement, representing a 21 percent growth over the earnings for the same time in 2008. The growth was driven by new stores in the U.S. and especially China markets.
Though same-store sales in mainland China were flat, the company opened 88 new restaurants there this quarter, leading to a system sales growth of 10 percent. This helped offset the decline in U.S. same-store sales, which dropped 6 percent.
The international division's system sales growth of 4 percent was also driven by new units. Same-store sales were flat.
Revenues for the quarter were $2.78 billion, down from $2.84 billion this time last year, a 2 percent decrease. Year-to-date reportings were also down 6 percent, with $7.47 billion for this quarter compared with $7.91 billion this time in 2008.
Despite some lower numbers, overall net income was up due to aggressive international expansion: $334 million compared with $282 million from last year's third quarter, an increase of 18 percent. Year-to-date net income is $855 million, up 12 percent from last year's $760 million.
The company raised its full-year 2009 EPS forecast from $2.10 to $2.14 per share or 12 percent growth because of "stronger-than-expected" full year performance.
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