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
LOUISVILLE, Ky.--(BUSINESS WIRE)--Feb. 4, 2013-- 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.
FULL-YEAR HIGHLIGHTS
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.
FOURTH-QUARTER HIGHLIGHTS
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 translation.
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.