Yum! Brands Inc. (NYSE: YUM – News) today reported results for the third quarter ended September 8, 2007.
THIRD-QUARTER HIGHLIGHTS:
* Worldwide system-same-store-sales growth of 4 percent, including 11 percent growth in mainland China, 7 percent growth in Yum! Restaurants International Division (YRI), and 1 percent growth in the U.S.
* Strong double-digit system-sales growth from mainland China, +33 percent, and YRI, +16 percent.
* Continued strong international restaurant unit growth: mainland China, +20 percent; YRI, +4 percent, the nineteenth consecutive quarter of at least 3 percent year-over-year YRI unit growth, our ongoing growth target.
* Strong worldwide operating-profit growth of +16 percent led by our international divisions: China, +28 percent, and YRI, +21 percent.
* Worldwide operating margin improved by 0.5 percentage point to 15.6 percent.
* Average diluted shares outstanding reduced by 2 percent, the thirteenth consecutive quarter with year-over-year share reduction as a result of substantial share buybacks. Over the past three years, the company’s regular share-repurchase program has reduced share count by a net 12 percent.
* Favorable foreign currency conversion impact of about $0.02 EPS.
Note: All preceding comparisons are versus the same period a year ago unless noted.
