Thursday July 02, 2009
"Yum Brands (NYSE: YUM), the world's largest restaurant company, is our latest featured stocks," says Alex Kolb, editor of Zacks Elite Stocks. Here, he looks at the firm's global reach.
"The company has more than 36,000 restaurants in more than 110 countries and territories. Four of its brands -- KFC, Long John Silver's, Pizza Hut and Taco Bell -- are the global leaders of the chicken, quick-service seafood, pizza and Mexican-style food categories.
"The company, which is based in Louisville, Kentucky, saw more than $11 billion in total revenues in 2008 and is #239 on the Fortune 500 List. Solid Income Yum recently declared a dividend of 19 cents per share.
"The company said it continues to return cash and build shareholder value through its dividend program first initiated in 2004, adding that it has increased its dividend four-fold since then.
"Yum is a dividend leader among its industry peers, offering an annual dividend of 76 cents per share, which translates into a yield of 2%.
"In late April, Yum reported robust results, including first-quarter earnings of 48 cents per share, excluding items.
"The result topped the year-prior 42 cents and exceeded Street expectations by 20%. Yum saw worldwide sales growth of 1%, including 2% growth in mainland China, which offset weaker U.S. sales.
"Management said the power of Yum's global portfolio allowed the company overcome a challenging environment by accelerating productivity and managing costs while continuing to drive and invest in global growth strategies.
"Yum issued a full-year earnings guidance of $2.10 per share, which represents 10% over last year. Analysts are in agreement, pegging full-year earnings at $2.11 per share, 11% higher than the year-prior. For 2010, the consensus forecast stands at $2.34."
