YUM! Brands beats by $0.01, reports revs in-line
* Reports Q2 (Jun) earnings of $0.73 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.72; revenues rose 10.3% year/year to $3.2 bln vs the $3.23 bln consensus.
- Worldwide system sales grew 6%. Worldwide restaurant margin increased 3.0 percentage points to 15.5%, and worldwide operating profit increased 34%.
- Total international development was 298 new restaurants; 78% of this development occurred in emerging markets.
- China Division system sales increased 21%, driven by 7% unit growth and 15% same-store sales growth. Restaurant margin increased 6.2 percentage points to 16.8%. Operating profit increased 188%.
- KFC Division system sales increased 5%, driven by 1% unit growth and 2% same-store sales growth. Restaurant margin increased 0.3 percentage points to 12.9%. Operating profit increased 12%.
- Pizza Hut Division system sales declined 1%, as 2% unit growth was offset by a 3% same-store sales decline. Restaurant margin decreased 6.4 percentage points to 7.2%. Operating profit decreased 22%.
Taco Bell Division system sales increased 3%, driven by 1% unit growth and 2% same-store sales growth. Restaurant margin decreased 2.7 percentage points to 17.7%. Operating profit decreased 2%.
- India Division system sales increased 18%, driven by 25% unit growth which was partially offset by a 2% same-store sales decline.
David C. Novak, Chairman and CEO said, "Yum! Brands is well on its way to delivering full-year EPS growth of at least 20%, with second-quarter EPS growth of 30%. Operating profit grew 188% in China driven by strong sales and margin performance. Just as important, I'm confident we are building momentum behind major initiatives around the world that will sustain double-digit EPS growth in 2015 and beyond... Briefing.com Note: 2014 EPS guidance is a reiteration of prior guidance.