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EARNINGS ROUNDUP

Yum Brands Net Income Up 11% on Higher Sales

April 25, 2006|From Bloomberg News

Yum Brands Inc. said first-quarter profit rose 11% because of higher sales at its KFC and Taco Bell restaurant chains.

Net income climbed to $170 million, or 59 cents a share, from $153 million, or 50 cents, a year earlier. Revenue gained 1.5% to $2.09 billion, the Louisville, Ky.-based company said. Earnings beat analysts' estimates by 2 cents share, according to Thomson Financial.

Yum raised its profit forecast for 2006 to as much as $2.81 a share from an earlier projection of $2.79. Analysts' average profit estimate for the year is $2.81, according to Thomson.

Chief Executive David Novak is expanding outside the U.S. so that Yum has less direct competition with McDonald's Corp., the world's biggest restaurant chain, and Burger King Corp., which opened its first restaurant in China this year.

Yum had 2,291 restaurants in China at of the end of 2005. McDonald's has more than 700.

Shares of Yum rose 59 cents to $50.19 after the close of regular trading. Before the earnings announcement, they climbed 56 cents to $49.60.

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