China Drives Yum! into New Heights

According to Zacks.com:
“Yum! Brands Inc (YUM – Analyst Report) recently hit an all-time high at $46.25. It also announced on September 14 that it is raising its dividend 19% to $1.00 per share.
Yum! Brands has more than 37,000 fast-food restaurants in 110 countries. Its brands include KFC, Taco Bell, Pizza Hut, Long John Silver’s, and A&W. It has a market cap of $21.4 billion.

Overseas Sales Drive Growth

Yum reported second quarter earnings per share of $0.58, beating the Zacks Consensus Estimate by 4 cents. Earnings grew 17% year-over-year.

Overall sales increased just 4% from the second quarter of 2009. U.S. sales declined 10% over the same period due to a decline in store count, but same-store-sales were essentially flat. Pizza Hut saw the best growth at 8%, which helped offset a 7% decrease at KFC.

The main driver of growth came from China as revenues there increased 22%. China accounted for 34% of total sales in the second quarter, and that number is only expected to climb as Yum rapidly expands its KFC and Pizza Hut brands in the country. The company has opened 155 stores in China year-to-date.”