Yum! Brands Inc. saw profits rise in the third quarter, lifted by strong sales in China and other emerging markets.
For the quarter ended Sept. 3, Yum’s net income rose 7 percent to $383 million, or 80 cents per share, compared with $357 million, or 74 cents per share, a year earlier.
Revenue for the quarter increased 14 percent to $3.27 billion, compared with $2.86 billion a year earlier. Top-line figures reflected same-store sales increases of 19 percent in China and 3 percent in the Yum Restaurants International division, which offset a 3-percent same-store sales decline in the United States.
In Yum’s struggling domestic system, same-store sales fell 2 percent at Taco Bell and 3 percent at both Pizza Hut and KFC. The company sold its A&W and Long John Silver’s brands to franchisee groups late last month, after the close of the quarter.
Chief executive David Novak said in a statement that Yum was “obviously disappointed in our U.S. performance,” which included a 16-percent profit slide.
“However, we have aggressively developed a pipeline of category-leading innovation and have productivity initiatives planned to dramatically improve sales and profit performance in 2012,” Novak said. “Looking ahead, the strength of our international brands and outstanding new-unit development, combined with aggressive U.S. initiatives, make us confident we will continue our track record of double-digit earnings growth next year and beyond.”
Louisville, Ky.-based Yum operates or franchises more than 38,000 restaurants in 110 countries.
Contact Mark Brandau at [email protected].
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