Yum Brands Earnings: Strong Quarter Reveals Accelerating Growth

YUM! Brands YUM announced its results for the most recent quarter on July 13, 2011. Let's take a closer look at the numbers and see what steps you can take. The Big Numbers: The company reported EPS of adjusted net income of 65 cents/share versus the 64 cents/share estimate and revenues of $2.82 billion versus the $2.7 billion estimate. Investors cheered YUM! Brands' latest numbers as the company reported EPS and revenues that topped predictions. EPS rose 10.2% while revenue climbed 9.4% from the same period last year. YUM!'s net income has now risen the past three quarters in a row. Over the last five quarters, revenue has increased 5.1% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 9.4% from the year earlier quarter. Revenue has risen the past four quarters on a year-over-year basis. Income: For the year, YUM! Brands reported net income of $2.59 per share. The company trumped analyst projections of $2.50 by 3.6%. According to the reported number, the company's income rose 10.5% from last year's levels. Official Comment: David C. Novak, Chairman and CEO said, "I'm pleased to report we are raising our full year EPS growth forecast to at least 12% based on the continued strength of our international businesses. We delivered EPS growth of 13% in the second quarter as strong performance in China and other emerging markets, combined with the benefit of a lower tax rate, offset a very disappointing quarter in the U.S." Industry: YUM! Brands is in the retail-restaurant industry. That industry is currently enjoying price/earnings growth of 1.4%. With its recently reported EPS, the company is trailing the industry's estimate average by 74.6%. What to Do Next: Now you're all set to decide what to do with those YUM! Brands shares until the next earnings announcement. Whether you buy, sell or hold, check back with before the company's next earnings release for a full preview.