Yum! Brands, Inc. (NYSE: YUM) said late Wednesday that its first quarter profit increased to $264 million, or 54 cents a share, from $241 million,or 50 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned 63 cents a share in the latest quarter. Revenue increased 3% to $2.43 billion from $2.34 billion. Analysts, on average, expected the company to report earnings of 64 cents per share on revenue of $2.40 billion.
Worldwide operating profit grew 5%, prior to foreign currency translation, including 18% in China and 8% in Yum! Restaurants International ("YRI"), partially offset by a 13% decline in the U.S. Same-store sales grew 13% in China and 2% in YRI, with a 1% decline in the U.S. Worldwide restaurant margin improved 0.6 percentage points to 17.6%.
David C. Novak, Chairman and CEO said, "I'm pleased to report strong international performance helped Yum! Brands deliver EPS growth of 7% in the first quarter, prior to special items.
Yum also reaffirmed its full year 2011 earnings per share growth target of at least 10%.
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