Kentucky-based, owner and franchisor of fast food chains including Taco Bell and KFC worldwide, Yum! Brands Inc. (NYSE: YUM) reported results for the third-quarter of 2012 ended September 8, 2012.
Consolidated revenues increased 9% to $3,569 million. Operating Income rose 38% to $671 million. Net income also increased 23% to $471 million.
YUMâ€™s revenues increased in all geographic regions except a 3% decrease in Japan and Canada. The company opened 394 new units including 192 units in China, and 181 new units in Yum! Restaurant International Division (YRI); among which 86% were opened in Emerging markets.
YUMâ€™s worldwide restaurant margin increased 1.9% to 18.9%, including increases of 0.1% inÂ China, 1.0% at YRI and 4.6% in theÂ U.S.
Operating profit increased more than revenues. The 38% increase in Operating profit are mainly due to the proportionate decrease in franchise and license expenses by 22%, decrease in closure and impairment expenses and also from refranchising gains.
In spite of having high operating profit and even net interest expenses, net income increased only by 23% due to the increase in income tax provision by 140%. Effective tax rate increased to 25.1% from 14.6%
As on Sep 8, 2012, the company had total assets of $8,974 million including cash and its equivalents worth $942 million. Total liabilities were $6,635 million, among which 31% were current and the remaining was long term. Total Stockholdersâ€™ equity was $2,294 million.
OnÂ September 20, 2012, the Company announced an 18% increase in its quarterly dividend, marking the eighth consecutive year the dividend increased at a double-digit percentage rate.
Yumâ€™s shares have risen sharply following the release of third-quarter results. At the last check, it was trading 8.62% higher at $71.37 with volume up from its daily average of 3.26 million to 12.26 million. The stock has so far traded in the range of $69.15 and $72. Its 52 week range is between $49.72 and $74.44. The stock had gained over 44% year to date.