Dividend.com: Yum! Brands' Profit Pangs

Yum! Brands Fast-Food Profit Falls 12% in the Fourth Quarter

Yum! Brands(YUM Quote), operator of the Pizza Hut, KFC and Taco Bell brands, reported fourth-quarter profit fell 12% to $204 million, or 43 cents per share, compared with $231 million, or 44 cents per share, last year.

Same-store sales, or sales at locations open at least one year, rose 2% during the fourth quarter in the U.S., as sales rose 8% to $11.28 billion from $10.42 billion a year earlier.

Looking ahead, management sees 2009 EPS coming in around $2.10, which is slightly above analyst expectations for $2.08 for the year.

We have avoided shares of Yum! Brands since our early June coverage began, when the stock was trading at $37.89. The company has a 2.69% dividend yield, based on last night's closing stock price of $28.27. The company does have technical support in the $20 to $22 area if shares hit any bumps in the road. The company does have initial overhead resistance in the $33 to $35 area. We would remain on the sidelines for now.

Yum! Brands is not recommended at this time, holding a Dividend.com Rating of 3.1 out of 5 stars.

ITT Fourth-Quarter Results Benefit From Defense Sales

Shares of ITT(ITT Quote) are up 2% so far today after the company reported fourth-quarter profit rose 17% to $185.5 million, or $1.02 per share, from $158.3 million, or 86 cents per share.

The company said revenue rose over 16% to $2.94 billion, on the performance of the company's defense electronics and services segment, which reported a 39% spike in sales.

Looking ahead, management is reaffirming its prior 2009 EPS guidance of $3.60 to $4.

We had removed shares of ITT from our "Recommended" list on Sept. 9, when the stock traded at $ 61.73. The company has a 1.55% dividend yield, based on last night's closing stock price of $45.05. The stock has technical support at the $35 price level. If that fails to hold, we could possibly see the $27 area come into play. If the shares can firm up, we see overhead resistance around the $51 to $52 price points.

ITT is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.

Kraft Foods Shares Fall on Pension Worries

Kraft Foods(KFT Quote) shares are down over 8% after the food maker and owner of many different household brands cut its 2009 guidance because of the stronger dollar and pension costs.

The company's volume took a hit in the fourth quarter, after consumers were resistant to higher prices the company took to offset higher input costs.

Looking ahead, management reduced its 2009 earnings guidance to $1.88 per share from at least $2 per share.