Yum Brands Inc. (yum) the world's largest restaurant chain which owns Taco Bell, KFC, Pizza Hut and A & W restaurants announced a 31% jump in quarterly profit today April 22, 2008. Of course, growth was fueled by China were they saw 12% year over year growth!
Things will only be getting stronger for Yum Brands in China were they open up a KFC every single day of the year! Not only do the Chinese people love KFC, but the upcoming Olympics should also bode well for them, as Westerners will flock to the restaurants they know in China like KFC and Taco Bell.
Let get to the numbers, first-quarter net income rose to $254 million, or 50 cents per share compared to $194 million, or 35 cents per share, a year earlier.
Earnings per share were 42 cents a share after backing out a gain from the sale of KFC in Japan, analysts were looking for 40 cents, so they beat that handily, even in this tough economic environment. Revenues for the quarter were $2.4 billion up from $2.2 billion.
One of the more promising signs from the earnings from Yum Brands was that they posted growth at established restaurants in the United States, reversing year-earlier declines and quelling fears that a slowdown in the US would hurt Yum's bottom line.
Of course, here at Stock Picky we have been behind this slow moving giant for quite some time now. Sure, it is not the most exciting stock to watch, but it pays a decent dividend of 0.15 cents per share or a 1.56% dividend yield. Nothing too exciting, but this company still has a lot of room to grow not just in China, but all over the world! Everyone knows about KFC, Taco Bell, A & W and Pizza Hut, they are strong brands that will always draw in customers time and time again as they spread across the globe.
Yum Brands is a great long term investment for anyone who wants own a stock they don't have to watch every day. For more reasons to own Yum Brands check out Yum Brands in China.