Yum! earnings advance on China performance

by Meat&Poultry Staff
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LOUISVILLE, Ky. — Net income at Yum! Brands, Inc. rose 73 percent to $458 million, equal to 99 cents per share on the common stock, in the first quarter ended March 24. This compared with income of $264 million, or 56 cents per share, in the same period a year ago.

Total revenues, meanwhile, increased 13 percent to $2,743 million from $2,425 million.

David C. Novak, chairman and chief executive officer of Yum!, said the company’s China business “continues to fire on all cylinders.” Yum! set a new unit development record in China with the opening of 168 new restaurants in the first quarter. Sales in the region grew 28 percent, while operating profit rose 14 percent to $256 million from $215 million.

Novak said Yum! also was pleased with its performance in the United States, where same-store sales increased 5 percent, including 6 percent growth at Taco Bell, 5 percent growth at Pizza Hut, and 2 percent growth at KFC.

Operating profit in the US division was $158 million, up 27 percent from $123 million in the same period a year ago.

Yum! opened 123 new units in 41 countries as part of its Yum! Restaurants International division, Novak said, and operating profit in the division rose 7 percent to $168 million from $158 million, while system sales increased 8 percent during the first quarter.

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