Wednesday, October 6, 2004

International sales spur Yum Brands



By Bruce Schreiner
The Associated Press

LOUISVILLE, Ky. - Fast-food giant Yum Brands Inc. reported a 13 percent gain in third-quarter earnings Tuesday, paced by surging international sales and a turnaround at its KFC restaurants.

KFC posted a 2 percent increase in U.S. same-store sales for the quarter, ending a prolonged slump. Yum said KFC benefited from a new ad campaign begun during the summer and from a promotion that put the face of race car driver Dale Earnhardt Jr. on buckets of chicken.

Overall, the company reported net income of $185 million, or 61 cents a share, for the period ending Sept. 4, compared to $164 million, or 53 cents per share, in the year-ago period.

Yum's brands also include Taco Bell, Pizza Hut, Long John Silver's and A&W All-American Food Restaurants.

International operating profits for the quarter increased 25 percent to $143 million. The upswing was tied to the expansion of KFC and Pizza Hut along with sales increases of 35 percent in China and 9 percent in the United Kingdom.

Yum chairman and chief executive David Novak said the company continues to exceed its annual earnings target based on strong international sales and growth at Taco Bell and Pizza Hut.

Novak said the company expects to open at least 1,000 new international restaurants again next year.

Yum shares rose 63 cents to close at $41.50 Tuesday on the New York Stock Exchange before the company released its earnings. They gained 9 cents in the extended session.