YUM! Brands' (NYSE:YUM) net income increased in the second quarter.
Earnings and Revenue The company's revenues topped Wall Street's expectations, though the company's EPS fell short of predictions. The company reported adjusted net income of 67 cents a share versus the 70 cents a share estimate and revenues of $3.17 billion versus the $3.12 billion estimate. The estimates of 18 analysts ranged from profit of 65 cents to profit of 75 cents.
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The company's net income for the quarter was $331 million. This is 4.7% higher than the year-ago quarter. Revenue climbed 12.5% from $2.82 billion in the same period last year.
Company Fundamental Trends Last quarter marked the third in a row of rising net income. The company's revenue has grown during at least each of the past four quarters on a year-over-year basis.
History Against Expectations The company missed forecasts after topping estimates in the previous two quarters. In the first quarter, it topped the mark by 3 cents, and in the fourth quarter of the last fiscal year, it was ahead by one cent.
Official Comment: David C. Novak, Chairman and CEO, said, "I'm pleased to report we generated strong system sales growth in each of our divisions in the second quarter, with robust new-unit development and exceptional same-store sales growth. Operating profit increased 8% while EPS growth of 1% was negatively impacted, as expected, by a higher tax rate versus last year. Our U.S. business increased operating profit 26% in the second quarter and drove our overall operating profit growth. We expect China and Yum! Restaurants International (YRI) to drive our second-half profit growth. Based on our first-half results and current solid sales trends, we reconfirm our full-year guidance of at least 12% EPS growth, excluding special items."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.