Yum! Brands 2Q income up 10 percent
LOUISVILLE, KY — With strong results in China and emerging markets offsetting disappointing US results, Yum! Brands Inc. posted a 10 percent increase in net income during the second quarter. For the quarter ended June 11, the company had an income of $316 million, equal to 67 cents per share on the common stock, which compared with an income of $286 million, equal to 61 cents per share, during the same quarter of the previous year.
Total revenue for the quarter was $2,816 million, up 9 percent from $2,574 million during the same quarter of the previous year.
“I am pleased to report we are raising our full-year EPS. growth forecast to at least 12 percent based on the continued strength of our international businesses,” said David Novak, chairman CEO. “We delivered EPS growth of 13 percent in the second quarter as strong performance in China and other emerging markets, combined with the benefit of a lower tax rate, offset a very disappointing quarter in the US.”
Operating profit in the US dropped 28 percent in the quarter while it grew 31 percent in the China Division.
For the six months ended June 11, the company as a whole had an income of $580 million, equal to $1.23 per share, up 10 percent from $527 million, equal to $1.11 per share. Revenue for the six months was $5,241 million, up 7 percent from $4,919 million.
Yum! Brands Inc. operates approximately 38,000 restaurants in more than 110 countries and territories and has more than 1 million employees. Company brands includes KFC, Pizza Hut and Taco Bell.