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Yum! Brands Inc. Announces Full-Year EPS Growth Of 14%, Or $2.87 Per Share, Excluding Special Items; Marks 10th Consecutive Year Of At Least 13% EPS Growth; China Opens A Record 656 New Units

Stocks in this article: YUM

Yum! Brands Inc. (NYSE: YUM) today reported results for the fourth quarter ended December 31, 2011 including EPS of $0.75. Reported EPS for the full year was $2.74. Full year and fourth quarter results for Yum! Restaurants International (YRI) and the U.S. reflect the benefit of an additional week. This 53 rd week did not impact China Division results.


  • Worldwide system sales grew 7%, prior to foreign currency translation, including 29% in China and 8% at YRI. System sales in the U.S. were even.
  • Same-store sales grew 19% in China, 3% at YRI and declined 1% in the U.S.
  • Record international development with 1,561 new restaurants, including 656 in China and 905 at YRI.
  • Worldwide operating profit grew 8%, including a positive impact from foreign currency translation of $77 million. Prior to foreign currency translation, operating profit grew 4%, including 15% in China and 9% at YRI, offsetting a 12% decline in the U.S.
  • Worldwide restaurant margin declined 0.9 points to 16.0%.
  • Increased annual dividend rate to $1.14 per share. This marked the seventh consecutive year we increased our dividend at a double-digit rate since initiating a dividend in 2004.
  • Repurchased 14.3 million shares totaling $733 million at an average price of $51.
  • Remained an industry leader with return on invested capital of over 22%.


  • Worldwide system sales grew 11%, prior to foreign currency translation, including 33% in China, 10% at YRI and 6% in the U.S.
  • Same-store sales grew 21% in China, 3% at YRI and 1% in the U.S.
  • Operating profit grew 15% in China and 12% at YRI, prior to foreign currency translation. Operating profit grew 10% in the U.S.
  • Worldwide restaurant margin declined 1.1 percentage points to 14.3%.

Fourth Quarter


Full Year





% Change





% Change

EPS Excluding Special Items $0.75 $0.63 20 % $2.87 $2.53 14 %
Special Items Gain/(Loss) 1 ($0.00 ) ($0.07 ) NM ($0.13 ) ($0.15 ) NM
EPS   $0.75     $0.56     33 %   $2.74     $2.38     15 %

1 See Reconciliation of Non-GAAP Measurements to GAAP Results for further detail of the Special Items. Special Items for 2011 are primarily related to Pizza Hut UK impairment and the divestitures of Long John Silver’s and A&W All-American Restaurants brands.


Note: All comparisons are versus the same period a year ago and exclude Special Items unless noted.


David C. Novak, Chairman and CEO said, “I’m pleased to report full-year EPS growth of 14%, making 2011 the tenth consecutive year we exceeded our annual target of at least 10%.

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