Yum! Goes Down Easy: Fool by Numbers

On July 11, Yum! Brands (NYSE: YUM  ) released second-quarter earnings for the period ended June 16.

  • Sales grew by 8%, backed by impressive performances from both the international and China divisions.
  • Another quarter, and more shares have disappeared. Average diluted shares fell 3%, marking the 12th consecutive quarter of share buybacks.
  • Buoyed by the strong growth coming from the China division, the company has raised its full-year EPS to $1.63, indicating a growth forecast of 12%.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$2,367.0

$2,182.0

8.5%

Net Profit

$214.0

$192.0

11.5%

EPS

$0.39

$0.34

14.7%

Diluted Shares

547.0

563.0

(2.8%)

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

25.5%

26.2%

(0.7)

Operating Margin

13.1%

14.1%

(1.0)

Net Margin

9.0%

8.8%

0.2

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$436.0

$267.0

63.3%

Accounts Rec.

$252.0

$223.0

13.0%

Inventory

$98.0

$84.0

16.7%

Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable*

$1,264.0

$1,185.0

6.7%

Long-Term Debt

$2,088.0

$2,027.0

3.0%

*Includes other current liabilities.

The balance sheet reflects the company's health.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$593.0

$558.0

6.3%

Capital Expenditures

$217.0

$186.0

16.7%

Free Cash Flow

$376.0

$372.0

1.1%

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.


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