Tricon Global Restaurants, Inc. (NYSE:YUM) today reported that U.S. blended same-store sales at company restaurants were down 4% for the four-week period ended November 25, 2000. These results are within the range of the company’s expectations. As a result, the company also reconfirms the full year-2000 earnings forecast of at least $2.95 in ongoing operating earnings per share.
For the four-week period, same store sales increased 4% at Pizza Hut, while KFC‘s were down 5%, and Taco Bell‘s declined 13%. Tricon’s International business reported year-to-date system sales growth of 6%.
The company also said expectations for International profit growth remain in-line with previous forecasts. For the full year, 2000, strong international profit growth of about 17% is expected, reinforcing the company’s strategy to focus ownership in key countries.
For the fourth quarter, the translation of system sales from foreign currencies into U.S. Dollars will adversely impact the company’s reported International system sales growth by as much as 6 percentage points. Through the third quarter, the year-to-date negative impact had been 1 percentage point. As a result, International system sales growth for the full year-2000 is now expected to be about 6%, one percentage point below previous expectations. Some key country currencies have experienced significant declines from last year’s fourth quarter. Particularly impactful have been declines in the value of the Australian Dollar (down more than 15%) and the British Pound (down more than 10%).
The four-week period ended November 25, 2000 represents Tricon’s period 12.
Tricon is the world’s largest restaurant company in terms of system units, with over 30,000 restaurants around the world in over 100 countries and territories. Tricon’s three brands, KFC, Pizza Hut and Taco Bell are the global leaders of the chicken, pizza and Mexican restaurant categories, respectively. Total worldwide system sales were nearly $22 billion in 1999.