Yum! Brands: Reports 14% Growth in First Quarter 2009

Louisville / KY. (bw) Yum! Brands Inc., parent of the Taco Bell, Pizza Hut and KFC chains, reported results for the first quarter ended March 21, 2009 including EPS growth of 14 percent excluding special items. EPS including special items declined ten percent due to the lap of a 0,13 USD per share gain in 2008 from the sale of the company´s minority interest in KFC Japan. Summary:

• Worldwide same-store-sales growth of one percent driven by plus two percent in mainland China and plus six percent in Yum! Restaurants International (YRI), partially offset by a decline of two percent in the United States.
• International development continued at a robust pace with 256 new restaurants including a record 98 new units in mainland China.
• Worldwide system sales growth prior to foreign currency translation of plus four percent including plus twelve percent in mainland China, plus ten percent in YRI, and a two percent decline in the United States.
• Worldwide restaurant margin improvement of 1,4 percentage points was driven by the combination of pricing and moderating commodity inflation, as well as refranchising.
• Worldwide operating profit growth of seven percent, excluding special items and foreign currency translation, driven by net unit development, improved restaurant margins, and proactive cost management. Each of our divisions generated profit growth prior to foreign currency translation: plus 21 percent in China, plus seven percent in the United States and plus four percent for YRI.
• EPS growth also benefited from last year´s substantial share repurchases and a lower effective tax rate partially offset by negative foreign currency translation of approximately 0,02 USD per share.