On July 11, Yum! Brands
- 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 |
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% |
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.
