On July 19, Yum! Brands
- Earnings handily beat expectations, helped by strong growth in China.
- Domestic same-store sales growth was flat for the quarter and down 3% for the four weeks ended July 15.
- Margins improved across the board, helped by lower food costs.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$2,190 |
$2,182 |
$2,153 |
1.3% |
|
Net Profit |
-- |
$192 |
$178 |
7.9% |
|
EPS |
$0.62 |
$0.68 |
$0.59 |
15.3% |
|
Diluted Shares |
-- |
281 |
301 |
(6.6%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin** |
69.51% |
68.45% |
1.06 |
|
Operating Margin |
14.07% |
12.12% |
1.95 |
|
Net Margin |
8.80% |
8.27% |
0.53 |
**Defined as sales less cost of food and beverage, without revenue from franchisees.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$341 |
$200 |
70.5% |
|
Accounts Rec. |
$223 |
$212 |
5.2% |
|
Inventory |
$84 |
$77 |
9.1% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,185 |
$1,214 |
(2.4%) |
|
Long-Term Debt |
$2,027 |
$1,562 |
29.8% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$261 |
$339 |
(23%) |
|
Capital Expenditures |
$114 |
$116 |
(1.7%) |
|
Free Cash Flow |
$147 |
$223 |
(34.1%) |
Find out why Fools always follow the money.
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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.
At the time of publication, Jim Mueller had no position in any company mentioned. Fool rules are here.
