US fastfood giant Yum! Brands has posted a 20% increase in first-quarter earnings, and raised its outlook for the full year.

The company, which owns KFC, Pizza Hut and Taco Bell, reported net income of US$142m, or 47 cents per share, for the first quarter to 20 March, compared to $117m, or 39 cents per share, in the year-ago period.

First-quarter revenues rose to $1.97bn from $1.80bn a year earlier. Systemwide same-store sales growth was 3%.

The company raised its full-year 2004 earnings guidance by 3 cents to at least $2.30 per share prior to special items and now expects reported earnings per share of at least $2.32.

“This reflects our confidence that we will once again exceed our 10% annual EPS growth target. Our estimate includes the impact of increased commodity inflation in the US, which has minimal effect on our largest and fastest growing division, Yum! Restaurants International,” said CEO David Novak.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In fact, international profits grew 36%, and system sales grew by 8% in local currency for the first quarter, and we anticipate once again opening at least 1,000 new system restaurants outside the US this year,” he added.

Novak said second-quarter international system-sales growth will be adversely affected by the avian flu situation, but China sales trends have fully recovered and the company expect this key market to continue to report rapid growth in 2004.