Louisville, Ky.-based Yum! Brands has raised FY 2002 ongoing operating EPS guidance to at least US$1.88, from US$1.82-85, upon reporting the results for its Q2 ended 15 June.
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During the Q2, highlights include increased international revenues by 18% and global ongoing operating profit up 47%. Worldwide restaurant margin increased 2.2 percentage points to 16.7%, a record high level.
David C. Novak, chairman and CEO said: “Our Q2 results were better than expected, driven by exceptional performance at our international business and Taco Bell.
“We also continued to make significant progress in executing our multibranding strategy. To this end, we successfully completed the acquisition of the Long John Silver’s and A&W restaurant brands, which more than triples the long-term opportunities for multibranded locations in the US to more than 13,000 restaurants. Combinations of these two brands with KFC and Taco Bell on average drive 20% to 30% increases in sales and at least a 30% increase in average unit cash flow.
“We are steadily improving restaurant operations and our customer satisfaction measures… to drive sales results.
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By GlobalData“For the Q3, we expect ongoing operating EPS to grow at a low- to mid-teens rate resulting in a range of US$0.45-47 per share.”
Fiscal highlights ($ms except per diluted share amounts)
% Change % Change
Vs. Vs.
Q2 Prior Year YTD Prior Year
——- ———- ——- ———–
System Sales 5,458 7 10,701 6
Revenues 1,767 10 3,381 9
Ongoing Operating Earnings 143 28 267 34
As % of Revenue 8.1% +1.2 ppts 7.9% +1.5 ppts
=========================== ======= =========== ======= ===========
Ongoing Operating EPS 0.45 24 0.86 30
=========================== ======= =========== ======= ===========
Net Facility Actions EPS (0.02) NM (0.05) NM
Unusual Items EPS 0.02 NM 0.04 NM
Reported EPS 0.45 17 0.85 25
