Yum Brands Posts Q1 Super-Sized Growth

LOUISVILLE, KY-Unwelcome publicity chewed up results in the US, but Yum Brands Inc. parlayed rampant overseas expansion into a robust first quarter, company officials announced yesterday. The world’s largest restaurant chain and parent of KFC, Long John Silvers, Pizza Hut and Taco Bell posted a 12% gain in operating profit versus the same stretch of 2006, paced by a 31% surge on mainland China and 25% boost for the international group overall.

“Our international businesses continue to generate strong, consistent growth,” CEO David Novak said in releasing the results. “Our proven capability of generating global growth with high returns and substantial free cash flow gives us confidence that we are on track to deliver another year of solid financial performance.”

Two publicized health incidents “had the most significant impact on US performance,” Novak acceded, but the firm says it will still open more than 1,000 units globally this year and has raised its earnings per share projection in FY 2007 to 11% ($3.23), up from 10%. If achieved, it would mark the sixth straight year the firm has registered double-digit EPS appreciation. Listed on the New York Stock Exchange, Yum shares closed at $66.73 on Wednesday.