Fastfood company Yum! Brands, operators of the Taco Bell, KFC and Pizza Hut chains, has announced rises in revenue and profit for its second quarter ended 11 June 2005 and raised its full year estimate for earnings per share.
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Total revenues in the quarter were $2.153bn, compared with $2.077bn in the same period a year earlier. Net income for the quarter was $187m, compared with $178m last year.
For the half year so far, revenues were $3.669bn, compared with $3.529bn. Net income was $348m, compared with $320m last year.
“I am pleased to report the strength of the Yum! Brands’ global portfolio is allowing us to raise our full-year 2005 EPS estimate to $2.62 or 11% growth,” said David C. Novak, chairman and CEO. “Our high-return Yum! Restaurants International Division is well on the way to another very strong year. Additionally, our China Division sales performance is much improved, and we expect to return to solid profit growth for the balance of the year.”
“We are especially pleased with our blended U.S. same-store-sales growth led by sustained performance at Taco Bell and the continued turnaround of KFC–US, which has experienced eight consecutive periods of positive same-store sales,” he said. “We expect the underlying strength of our global portfolio of businesses to allow us to once again exceed our annual target of at least 10% growth in EPS.”
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By GlobalData“Importantly, we remain bullish on our long-term new-unit growth opportunity for both our China and Yum! Restaurants International Divisions. In fact, we are on track to reach our full-year target to open a record 375 new restaurants in our China Division and to open at least 725 new restaurants for Yum! Restaurants International
Division. This will be the fifth straight year of at least 1,000 new restaurants opened outside the USA and we expect to at least maintain this pace going forward.”
