Yum! Brands Inc. ended a tumultuous fiscal 2013 with a 13-percent decline in full-year same-store sales in its important China division. The drop contributed heavily to a 32-percent slide in net income to $1.09 billion, or $2.36 per share.
In addition to the 15-percent decrease in same-store sales for the year at KFC in China, where fears about avian flu and the quality of that nation’s poultry supply decimated the chain’s momentum, Louisville, Ky.-based Yum also recorded charges for the write-down of assets for its Little Sheep chain in China and for the repurchase of outstanding debt.
Yum operates or franchises more than 40,000 restaurants in more than 125 countries.
4Q NET INCOME
Result: $321 million, or 70 cents per share% Decrease: 5% (from $337 million, or 72 cents per share)
4Q REVENUE
Result: $4.18 billion% Increase: 1% (from $4.15 billion)
4Q SAME-STORE SALES
% Decrease, China: 4%
Including 4% decline at KFC, 5% increase at Pizza Hut
% Increase, Yum! Restaurants International: 2%
% Decrease, United States: 2%
Including 1% increase at Taco Bell, 5% decrease at KFC, 4% decrease at Pizza Hut
Source: Company report
FULL YEAR NET INCOME
Result: $1.09 billion, or $2.36 per share% Decrease: 32% (from $1.6 billion, or $3.38 per share)
FULL YEAR REVENUE
Result: $13.08 billion% Decrease: 4% (from $13.63 billion)
FULL YEAR SAME-STORE SALES
% Decrease, China: 13%
Including 15% decrease at KFC, 4% increase at Pizza Hut
% Increase, Yum! Restaurants International: 1%
—— % Increase, United States: flat
Including 3% increase at Taco Bell, 2% decreases at KFC, Pizza Hut
Source: Company report
RELATED:
• Yum 2Q profit falls 15%
• Yum: China sales recovery unlikely in 2013
• Same-store sales at NRN.com
This story has been revised to reflect the following correction:
Correction: Feb. 4, 2014 This story has been updated with the correct fourth-quarter U.S. same-store sales results for Taco Bell, KFC and Pizza Hut. Additionally, an earlier version of this story incorrectly stated that Yum! Brands Inc. operates restaurants in more than 130 countries. The company operates in more than 125 countries.
Contact Mark Brandau at [email protected].
Follow him on Twitter: @Mark_from_NRN
