LOUISVILLE, Ky.--(BUSINESS WIRE)--
Yum! Brands Inc. (NYSE: YUM), in advance of its annual investor update
meeting, reaffirms its full year 2009 EPS growth forecast of 12%,
excluding special items. Yum! also announces that it expects to deliver
at least 10% EPS growth in 2010, excluding special items, which would
mark the ninth straight year of meeting or exceeding this annual EPS
growth target.
David C. Novak, Chairman and CEO, said, "2009 has been a year of solid
performance led by our China and Yum! Restaurants International
businesses, and we remain on track to deliver 12% EPS growth. This
performance has been driven by our industry leading international new
unit development, favorable commodity costs, productivity gains across
our businesses and a lower effective tax rate. We are also pleased that
we were able to deliver an increased dividend to our shareholders as
well as improve on our industry leading Return on Invested Capital
(ROIC). Our biggest challenge continues to be driving same-store-sales
growth in the difficult consumer environment. All indications are that
2010 will be another challenging year, and we have built our plans
accordingly. We plan to deliver at least 10% EPS growth in 2010
benefiting from international new unit development, disciplined cost
management, modest same-store-sales growth and favorable foreign
currency translation. We believe our track record of delivering
double-digit EPS growth is driving long-term value for our shareholders."
2010 TARGETS
-- At least 10% EPS growth
-- Continued substantial international new unit development of 1,400,
including both Yum! Restaurants International (YRI) and China.
-- Target profit growth, excluding foreign currency translation, of 15% in
mainland China, 10% in YRI and 5% in the U.S.
-- Currently estimating foreign currency translation benefit of $25-50MM.
CURRENT OUTLOOK FOR 2009
-- Full year 2009 EPS growth of 12%, excluding special items, led by full
year new unit development of 1,400+ new units in China and YRI combined.
-- Full year 2009 estimated system sales growth, excluding foreign currency
translation, of 9% in mainland China and 5% in YRI, and same-store-sales
decline of 4% in the U.S. Fourth quarter estimated same-store-sales
performance of -3% in mainland China, -1% in YRI and -8% in the U.S.
-- Full year 2009 negative foreign currency translation impact of about
$45MM.
2009 INVESTOR UPDATE MEETING
The company will present a business update and take questions on its
strategies and global expansion outlook on Wednesday, December 9, 2009
from approximately 8:45 a.m. to 12:30 p.m. EST, at the St. Regis Hotel
in New York City. Following the event beginning at 12:45 pm, the company
will have a detailed modeling session and will provide additional
full-year 2010 guidance.
The 2009 Investor Update Meeting will be webcast live with the
presentation and will also be available following the event along with
the detailed full-year 2010 guidance. These can be accessed online at www.yum.com.
This announcement, any related announcements and the related webcast may
contain "forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. We intend all forward-looking statements to be covered by
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. Our
forward-looking statements are subject to risks and uncertainties, which
may cause actual results to differ materially from those projected.
Factors that can cause our actual results to differ materially include,
but are not limited to: economic and political conditions in the
countries where we operate; currency exchange and interest rates;
commodity, labor and other operating costs; competition, consumer
preferences or perceptions; the impact of any widespread illness or food
borne illness; the effectiveness of our operating initiatives and
marketing; new-product and concept development by us and our
competitors; the success of our strategies for refranchising and
international development; the continued viability of our franchise and
license operators; our ability to secure and maintain distribution and
adequate supply to our restaurants; publicity that may impact our
business and/or industry; pending or future legal claims; our effective
tax rates; our actuarially determined casualty loss estimates;
government regulations; and accounting policies and practices. You
should consult our filings with the Securities and Exchange Commission
(including the information set forth under the captions "Risk Factors"
and "Forward-Looking Statements" in our Annual Report on Form 10-K) for
additional detail about factors that could affect our financial and
other results. Forward-looking statements are based on current
expectations and assumptions and currently available data and are
neither predictions nor guarantees of future events or performance. You
should not place undue reliance on forward-looking statements, which
speak only as of the date hereof. We are not undertaking to update any
of these statements.
Yum! Brands, Inc., based in Louisville, Kentucky, is the world's largest
restaurant company in terms of system restaurants, with more than 36,000
restaurants in more than 110 countries and territories. The company is
ranked #239 on the Fortune 500 List, with revenues in excess of $11
billion in 2008. Four of the company's restaurant brands - KFC, Pizza
Hut, Taco Bell and Long John Silver's - are the global leaders of the
chicken, pizza, Mexican-style food and quick-service seafood categories,
respectively. Outside the United States, the Yum! Brands system opened
more than four new restaurants each day of the year, making it the
largest retail developer in the world. The company has consistently been
recognized for its reward and recognition culture, diversity leadership,
community giving, and consistent shareholder returns. Yum! Brands has
been named one of the "100 Best Corporate Citizens" by Corporate
Responsibility Officer magazine for its ongoing commitment to corporate
responsibility and ranked among the best investor relations web sites in
North America in the 2009 IR Global Rankings. For the second year, the
company launched the world's largest private sector hunger relief effort
in partnership with the United Nations World Food Programme and other
hunger relief agencies. To date, this effort is helping to save
approximately 4 million people in remote corners of the world, where
hunger is most prevalent.
Source: Yum! Brands Inc.
Contact: Yum! Brands Inc.
Analysts are invited to contact:
Tim Jerzyk, 888-298-6986
Senior Vice President and Treasurer
or
Bruce Bishop, 888-298-6986
Director Investor Relations
or
Members of the media are invited to contact:
Amy Sherwood, 502-874-8200
Vice President Public Relations