Louisville / KY. (yb) Yum! Brands Inc. reported results for the first quarter ended March 24, 2012 including EPS of 0,76 USD, excluding Special Items. Reported EPS for the quarter was 0,96 USD. First quarter highlights:
- Worldwide operating profit grew 15 percent, prior to foreign currency translation, including 14 percent in China, nine percent at Yum! Restaurants International (YRI) and 27 percent in the U.S.
- Worldwide system sales grew seven percent, prior to foreign currency translation, including 28 percent in China, eight percent at YRI and one percent in the U.S.
- The 2011 fourth-quarter divestiture of Long John Silver´s (LJS) and A+W All-American Restaurants (A+W) negatively impacted worldwide system sales growth by two percentage points, including an impact of five percentage points to the U.S. and one percentage point to YRI.
- Same-store sales grew 14 percent in China, five percent at YRI and five percent in the U.S.
- China new unit development set a first-quarter record with 168 new restaurants. Total international development was 297 new restaurants.
- Worldwide restaurant margin increased 1,2 percentage points to 18,6 percent.
- Foreign currency translation positively impacted operating profit by eight million USD.
- On February 01, 2012, we acquired a controlling interest in Little Sheep Group Limited, the leading hot-pot casual-dining concept based in China. Little Sheep operating results for February through April will be included in our second quarter results.
Full-year EPS growth forecast raised to at least twelve percent, or at least 3,22 USD, excluding Special Items, the company said in its statement.
David C. Novak, Chairman and CEO: «I am pleased to report each of our divisions produced impressive sales and profit results, driving 21 percent first-quarter EPS growth. Given the strength of our first-quarter results, we are raising our full-year EPS growth forecast to at least twelve percent, excluding Special Items».
«Our China business continues to fire on all cylinders, and our category-leading brands are as strong as ever. China system sales grew 28 percent as we opened 168 new restaurants and delivered same-store sales growth of 14 percent; operating profit grew 14 percent, prior to foreign currency translation. Yum! Restaurants International continues to generate consistent growth as system sales grew eight percent and we opened 123 new units in 41 countries. Same-store sales growth of five percent was led by an eight percent increase in emerging markets at YRI, driving nine percent operating profit growth, prior to foreign currency translation. Yum! Restaurants India, our newest division, grew system sales 34 percent and we expect to open 100 new restaurants this year. Overall for the first quarter, we opened 250 new restaurants in high-growth emerging markets. We believe our new unit potential in emerging markets is the best in the restaurant industry and we are still on the ground floor of growth».
«While we realize there is much work to do, we are optimistic we will dramatically improve our U.S. brand positions, consistency and returns. We are pleased with our first-quarter performance in the United States, with same-store sales growth of five percent, led by Taco Bell, and operating profit growth of 27 percent. In summary, we are off to a strong start to the year in each of our businesses. These results give us even more confidence that we will continue our track record of double-digit annual EPS growth».
