Yum! Brands Inc. (NYSE: YUM) today reported results for the third quarter ended September 8, 2007.
THIRD-QUARTER HIGHLIGHTS
- Worldwide system-same-store-sales growth of 4%, including 11% growth in mainland China, 7% growth in Yum! Restaurants International Division (YRI), and 1% growth in the U.S.
- Strong double-digit system-sales growth from mainland China, +33%, and YRI, +16%.
- Continued strong international restaurant unit growth: mainland China, +20%;YRI, +4%, the nineteenth consecutive quarter of at least 3% year-over-year YRI unit growth, our ongoing growth target.
- Strong worldwide operating-profit growth of +16% led by our international divisions: China, +28%, and YRI, +21%.
- Worldwide operating margin improved by 0.5 percentage point to 15.6%.
- Average diluted shares outstanding reduced by 2%, the thirteenth consecutive quarter with year-over-year share reduction as a result of substantial share buybacks. Over the past three years, the company's regular share-repurchase program has reduced share count by a net 12%.
- Favorable foreign currency conversion impact of about $0.02 EPS.
