Yum! Brands chairman and CEO David C. Novak expectsthe strong sales growth in the US and expansion inthe China and International divisions to result in 12%EPS growth this year and at least 10% EPS growth in2006.

So far this year, Yum! Brands International Division's same-store sales have increased 9%. Similarly, the chain's China Division's same-store sales posted growth of 12%, while the US division's achieved modest same-store sales expansion of 6%. Specifically, Taco Bell grew 8%, Pizza Hut grew 4% and KFC grew 6% for the first 10 months of the year. The company's annual target growth rate for U.S. same-store sales is 1% to 2%, according to a press release.

Yum! Brands' third quarter earnings report showed thatthe chain earned 71 cents per share, an 18% increaseover the same period last year on revenues of $2.2billion. Based on the third-quarter results, thecompany raised its 2005 EPS estimate to $2.64 or 12%growth.