Yum! Brands Reports Second-Quarter EPS Growth Of 1%, Or $0.67 Per Share, Excluding Special Items; Projects Record International New-Unit Development For The Year; Reconfirms Full-Year 2012 EPS Growth Forecast Of At Least 12%

The Company uses earnings before Special Items as a key performance measure of results of operations for the purpose of evaluating performance internally and Special Items are not included in any of our segment results. This non-GAAP measurement is not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of earnings before Special Items provides additional information to investors to facilitate the comparison of past and present operations, excluding items in 2012 and 2011 that the Company does not believe are indicative of our ongoing operations due to their size and/or nature.

			Quarter										Year to Date
			6/16/12					6/11/11					6/16/12					6/11/11
Detail of Special Items
U.S. Refranchising gain (loss) (d)			$	9				$	(8	)			$	54				$	(7	)
Gain upon acquisition of Little Sheep (e)				—					—					74					—
Loss associated with the planned refranchising of the Pizza Hut UK business (f)				(2	)				—					(23	)				—
Losses and other costs relating to the LJS and A&W divestitures (g)				—					(1	)				—					(69	)
Other Special Items				7					3					10					5
Total Special Items Income (Expense)				14					(6	)				115					(71	)
Tax Benefit (Expense) on Special Items				(2	)				2					(9	)				26
Special Items Income (Expense), net of tax			$	12				$	(4	)			$	106				$	(45	)
Average diluted shares outstanding				477					484					478					485
Special Items diluted EPS			$	0.02				$	(0.01	)			$	0.22				$	(0.09	)
Reconciliation of Operating Profit Before Special Items to Reported Operating Profit
Operating Profit Before Special Items			$	459				$	425				$	1,003				$	891
Special Items Income (Expense)				14					(6	)				115					(71	)
Reported Operating Profit			$	473				$	419				$	1,118				$	820
Reconciliation of EPS Before Special Items to Reported EPS
Diluted EPS Before Special Items			$	0.67				$	0.66				$	1.43				$	1.29
Special Items EPS				0.02					(0.01	)				0.22					(0.09	)
Reported EPS			$	0.69				$	0.65				$	1.65				$	1.20
Reconciliation of Effective Tax Rate Before Special Items to Reported Effective Tax Rate
Effective Tax Rate Before Special Items				23.9	%				16.7	%				25.9	%				22.1	%
Impact on Tax Rate as a result of Special Items				(0.2	)%				(0.3	)%				(2.0	)%				(1.4	)%
Reported Effective Tax Rate				23.7	%				16.4	%				23.9	%				20.7	%

YUM! Brands, Inc. Segment Results (amounts in millions) (unaudited)
Quarter Ended 6/16/12			China					YRI					UnitedStates					India					CorporateandUnallocated					Consolidated
Total revenues			$	1,556				$	770				$	818				$	24				$	—				$	3,168
Company restaurant expenses				1,295					509					520					20					(5	)				2,339
General and administrative expenses				81					102					116					6					41					346
Franchise and license expenses				2					11					13					—					—					26
Closures and impairment (income) expenses				2					(1	)				3					—					—					4
Refranchising (gain) loss				—					—					—					—					(13	)				(13	)
Other (income) expense				(6	)				(1	)				—					—					—					(7	)
				1,374					620					652					26					23					2,695
Operating Profit (loss)			$	182				$	150				$	166				$	(2	)			$	(23	)			$	473
Quarter Ended 6/11/11			China					YRI					UnitedStates					India					CorporateandUnallocated					Consolidated
Total revenues			$	1,180				$	735				$	883				$	18				$	—				$	2,816
Company restaurant expenses				935					479					620					14					(3	)				2,045
General and administrative expenses				67					91					102					6					42					308
Franchise and license expenses				1					12					22					(1	)				(1	)				33
Closures and impairment (income) expenses				3					7					9					—					—					19
Refranchising (gain) loss				—					—					—					—					5					5
Other (income) expense				(8	)				—					(2	)				—					(3	)				(13	)
				998					589					751					19					40					2,397
Operating Profit (loss)			$	182				$	146				$	132				$	(1	)			$	(40	)			$	419

The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Summary of Results. Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.

« First ‹ Previous 1 2 3 4 5 6 7 Next › Last »