News

Yum! Brands boosted by international units

October 5, 2010

Yum! Brands Inc. reported a 7 percent net income increase from last year in the third quarter ended Sept. 4.

The results, announced Wednesday, also included a 14 percent operating profit, excluding special items. These numbers were buoyed, once again, by strong growth in China, up 23 percent.

Yum! Restaurants International (YRI) were up 16 percent, while U.S. units experienced a 2 percent decline.

KFC leads Yum!'s China business with nearly 3,000 stores in more than 650 cities.

The China division opened 96 new restaurants in the first quarter of 2010, including 15 net openings for KFC. The company plans a total of 500 new stores in China this year.

YRI's new growth markets included France, India and Russia, which contributed 14 percent of system sales growth.

Taco Bell opened its first store in India during the quarter, and sales have been strong, according to David C. Novak, chairman and CEO, with more than 1,000 transactions a day.

Yum! Brands is also focused on emerging markets with smaller national incomes per capita, including Indonesia, Malaysia, Russia, Vietnam and Brazil. The company has almost 10,000 stores in these markets and plans continue for more expansion.

"We continue to execute against our global growth opportunities, both in China as well as Yum! Restaurants International, with our leading industry new unit expansion," Novak said. "KFC is the fastest growing western brand. In the United States, we are making progress, competing in a tough macro environment. We are encouraged by recent sales trends, with plenty of opportunity to drive value and innovation as we improve operations."