Stock trading advice: China growth pushed up Yum’s sales in 2010

Yum! Brands Inc., New York symbol YUM, operates over 37,000 fast-food restaurants in over 110 countries. Its main banners include KFC (fried chicken), Pizza Hut, Taco Bell (Mexican food) and Long John Silver’s (seafood). The company continues to grow strongly in China. That offsets slower growth in the U.S. and other parts of the world. In 2010, Yum’s sales rose 4.7%, to $11.3 billion from $10.8 billion in fiscal 2019. Overall sales rose 17% in China, while same-store sales in China grew 6%. Yum opened 507 new restaurants in China in 2010, along with another 884 international outlets outside China. International sales outside China rose 4%. In India the number of Yum restaurants jumped 21%, and sales soared 39%. In the U.S., same store sales rose 1%. Earnings per share, excluding unusual items, rose 16.6%, to $2.53 from $2.17. In 2011, Yum plans to open an additional 1,400 international restaurants, including 475 in China and 900 in other countries. The company feels that its international operations will supply 75% of its total earnings in 2015, up from 65% in 2010. You can get our in-depth analysis, including our updated buy/sell/hold stock trading advice, on Yum and other U.S. stocks when you subscribe to Wall Street Stock Forecaster. What’s more, you can get one month free when you subscribe today. Click here to learn how.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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