Yum! Brands Announces Full-Year 2012 EPS Growth Of 13%, Or $3.25 Per Share, Excluding Special Items; Opens A Record 1,976 New International Restaurants; Adverse Publicity Regarding Poultry Supply Continues To Significantly Impact China KFC Sales
Yum! Brands Inc. (NYSE: YUM) today reported results for the fourth quarter ended December 29, 2012 including EPS of $0.83, excluding Special Items. Reported EPS was $0.72 for the quarter and $3.38 for the year.
Worldwide system sales grew 5%, prior to foreign currency translation.
- Worldwide system sales growth was 8%, excluding the 2011 divestiture of Long John Silver’s (LJS) and A&W All American Restaurants (A&W), the 53rd-week impact and the acquisition of Little Sheep, including 17% in China, 7% at Yum! Restaurants International (YRI) and 5% in the U.S. The 2011 fourth-quarter and full-year results reflect the benefit of an additional (53rd) week.
- Same-store sales grew 4% in China, 3% at YRI and 5% in the U.S.
- Worldwide restaurant margin increased 0.6 percentage points to 16.6%.
- Worldwide operating profit grew 12%, prior to foreign currency translation.
- Record international development with 1,976 new restaurants opened, including 889 new units in China, 949 new units at YRI and 138 in India Division; 83% of this development occurred in emerging markets.
- China Division KFC same-store sales turned sharply negative during the last two weeks of December as a result of adverse publicity from the poultry supply situation.
Worldwide system sales were flat, prior to foreign currency
- Worldwide system sales growth was 5%, excluding the 2011 divestiture of LJS and A&W, the 53rd week impact and the acquisition of Little Sheep, including 7% in China, 7% at YRI and 3% in the U.S.
- Same-store sales grew 3% at YRI and 3% in the U.S. Same-store sales declined 6% in China.
- Worldwide restaurant margin increased 0.1 percentage point to 14.4%.
Worldwide operating profit grew 6%, prior to foreign currency
translation. Operating profit grew 10% at YRI, declined 5% in China
and declined 5% in the U.S.
- Excluding the 53rd-week impact, worldwide operating profit grew 11%, including 15% at YRI and 5% in the U.S.
The current negative sales trend in our China KFC business will adversely impact 2013 EPS. See next page for details.
|Fourth Quarter||Full Year|
|2012||2011||% Change||2012||2011||% Change|
|EPS Excluding Special Items||$0.83||$0.75||10%||$3.25||$2.87||13%|
|Special Items Gain/(Loss) 1||$(0.11)||$0.00||NM||$0.13||$(0.13)||NM|
|1 See Reconciliation of Non-GAAP Measurements to GAAP Results for further detail of the Special Items. Special Items for 2012 are primarily related to the U.S. pension settlement charge, Little Sheep acquisition gain, U.S. refranchising gains and loss on refranchising of our Pizza Hut UK Dine-in restaurants.|
|Note: All comparisons are versus the same period a year ago and exclude Special Items unless noted.|
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