February 4, 2013
Yum! Brands (NYSE: YUM ) has delivered somewhat disappointing numbers with the release of its Q4 and 2012 results. For the quarter, total revenues came in at $4.15 billion, more or less flat over the same period the previous year. Net income was $337 million ($0.72 per diluted share), down from the $356 million of Q4 2011.
Much of the shortfall is due to allegations in Chinese media that KFC China's supplier fed toxic chemicals to the chickens it sold the restaurant chain. Although the company quickly and vociferously denied the charges, the accusations badly affected sales.
Yum!'s Q4 EPS came in under analyst expectations $0.82, although the company's top line beat the market's anticipation of $4.12 billion.
For fiscal 2012, the company posted an 8% rise in total revenues to $13.6 billion. Net profit was $1.6 billion, or 21% higher on a year-over-year basis.
Yum! also provided some guidance for fiscal 2013. The company wrote in its earnings release that it anticipates a "mid-single digit EPS decline in 2013 versus prior year, excluding Special Items."