Yum Brands sees more double-digit EPS growth in 2009
By Dow Jones NewswiresNews
Dec. 6, 2008 – Yum Brands Inc. sees another
year of double-digit profit growth in 2009 as it sees same store sales increases
so far this quarter, despite the worsening economic climate.
The parent of the KFC, Pizza Hut and
Taco Bell restaurant chains said same store sales for the first two months of
the quarter rose 4% in both mainland China and the rest of Yum's international
operations, and 2% in U.S. domestic results were adjusted to reflect the later
Thanksgiving this year.
Meanwhile, another year of
double-digit profit growth on a per-share basis for 2009 would be the
eighth-straight year of such growth. Analysts surveyed by Thomson Reuters were
expecting a 10% increase to $2.08 a share.
Yum, which reiterated its 2008
profit target, will be holding an investor conference next week during which
Chairman and Chief Executive David C. Novak will say the company will show how
its chains will continue to growth. Further international expansion and
same store sales increases are the cornerstone of that strategy.
Yum has been reporting solid sales
gains for some time, as the company continues to boost its presence internationally,
where more growth is expected to come from. The company expects 70% of its
profit to come from outside the U.S. in 10 years, compared with 55% currently.
Yum shares were up 1.7% in
after-hours trading to $28.09 US.
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