Yum! (YUM) Q4 Results Beat the Street as China Comps Surge 21%
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Price: $140.10 --0%
Revenue Growth %: +3.6%
Financial Fact:
Operating Profit: 491M
Today's EPS Names:
RUSHA, SEIC, OSBC, More
Revenue Growth %: +3.6%
Financial Fact:
Operating Profit: 491M
Today's EPS Names:
RUSHA, SEIC, OSBC, More
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Traders are dipping a toe into Yum! Brands (NYSE: YUM) Monday afternoon following better-than-expected fourth-quarter results on both the top and bottom lines. After closing at $63.19 this afternoon, shares last traded at $64.80.
Sales during the quarter totaled $4.11 billion, up 15 percent from the $3.56 billion posted during the same quarter last year. Analysts had been looking for quarterly sales of $4.03 billion. Same-store sales grew 21 percent in China, 3 percent at Yum! Restaurants International, and 1 percent in the US.
Net income surged 30 percent from $274 million in the year-ago quarter to $356 million. Per-share earnings totaled 75 cents, up 33 percent from 56 cents issued during the fourth quarter of 2010. The Street consensus estimate was at 74 cents per share.
Global margin fell 0.9 points to 16.0 percent.
Yum! Chairman and CEO David Novak said, “I’m pleased to report full-year EPS growth of 14%, making 2011 the tenth consecutive year we exceeded our annual target of at least 10%.
"The highlight of 2011 was again the exceptional performance of our China business, which grew system sales by 29% and operating profit by 15%, prior to foreign currency translation. We opened a record 656 new restaurants and delivered extraordinary same-store sales growth of 19%. Clearly, our KFC and Pizza Hut brands in China continued to strengthen their category-leading positions. At the same time, Yum! Restaurants International opened 905 new units, including 622 in high-growth emerging markets. We are on the ground floor of growth in India, Russia and Africa, where system sales grew at strong double-digit rates. For the year, our emerging market businesses at Yum! Restaurants International grew system sales 13%, prior to foreign currency translation, including new-unit growth of 7%. Emerging markets contributed nearly 50% of operating profit at Yum! Restaurants International. The Yum! growth story is clearly about China and a whole lot more."
Sales during the quarter totaled $4.11 billion, up 15 percent from the $3.56 billion posted during the same quarter last year. Analysts had been looking for quarterly sales of $4.03 billion. Same-store sales grew 21 percent in China, 3 percent at Yum! Restaurants International, and 1 percent in the US.
Net income surged 30 percent from $274 million in the year-ago quarter to $356 million. Per-share earnings totaled 75 cents, up 33 percent from 56 cents issued during the fourth quarter of 2010. The Street consensus estimate was at 74 cents per share.
Global margin fell 0.9 points to 16.0 percent.
Yum! Chairman and CEO David Novak said, “I’m pleased to report full-year EPS growth of 14%, making 2011 the tenth consecutive year we exceeded our annual target of at least 10%.
"The highlight of 2011 was again the exceptional performance of our China business, which grew system sales by 29% and operating profit by 15%, prior to foreign currency translation. We opened a record 656 new restaurants and delivered extraordinary same-store sales growth of 19%. Clearly, our KFC and Pizza Hut brands in China continued to strengthen their category-leading positions. At the same time, Yum! Restaurants International opened 905 new units, including 622 in high-growth emerging markets. We are on the ground floor of growth in India, Russia and Africa, where system sales grew at strong double-digit rates. For the year, our emerging market businesses at Yum! Restaurants International grew system sales 13%, prior to foreign currency translation, including new-unit growth of 7%. Emerging markets contributed nearly 50% of operating profit at Yum! Restaurants International. The Yum! growth story is clearly about China and a whole lot more."
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