On Feb. 12, fast-food conglomerate Yum! Brands (NYSE:YUM) released fourth-quarter earnings for the period ended Dec. 30.

  • Revenues grew by 4%, with growth in China and its international business leading the way.
  • The company bought the remaining 50% ownership of the Pizza Hut U.K. joint venture from Whitbread.
  • Of 285 investors in our community-intelligence database, Motley Fool CAPS, 248 think Yum! Brands will outperform the S&P 500. What do you think? Bring it to CAPS!

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$3,016

$2,899

4.0%

Net Profit

$232

$226

2.7%

EPS

$0.83

$0.77

7.8%

Diluted Shares

278

292

(4.8%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Restaurant Margin

13.8%

13.2%

0.6

Operating Margin

10.9%

11.5%

(0.6)

Net Margin

7.7%

7.8%

(0.1)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$325

$201

61.7%

Accounts Rec.

$220

$236

(6.8%)

Inventory

$93

$85

9.4%


Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable*

$1,387

$1,256

10.4%

Long-Term Debt

$2,045

$1,649

24.0%

*Accounts payable includes other current liabilities.

Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$1,302

$1,238

5.2%

Capital Expenditures

$614

$609

0.8%

Free Cash Flow

$688

$629

9.4%



Find out why Fools always follow the money.

Related Companies:

  • Chipotle (NYSE:CMG)
  • McDonald's (NYSE:MCD)
  • Pizza Inn (NASDAQ:PZZI)

Related Foolishness:

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