After market close on Wednesday, Yum! Brands (NYSE:YUM) released fiscal third-quarter 2006 earnings for the period ended Sept. 9. Here are the quick-and-dirty details for the quarter.

  • Shares of Yum! jumped big-time after the company reported earnings above analyst projections and upped guidance for the year. Sales only advanced 1.6%, but profits rose 12.2%, and diluted earnings jumped an impressive 20.3% because of share repurchases.

  • Yum! saw strong sales in China and internationally, but U.S. growth continued to be anemic, with negative same-store sales at Taco Bell and Pizza Hut.

  • Management increased its guidance for the year; it now expects earnings of $2.89, up from $2.83.

  • The strong earnings results have sent the shares up 6.5% in just a couple of days. At a recent $58.14, they're up almost 30% from the yearly lows reached in July. As a result, a couple of sell-side analysts recently downgraded the stock.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$2,280

$2,278

$2,243

1.6%

Net Profit

--

$230

$205

12.2%

EPS

$0.75

$0.83

$0.69

20.3%

Diluted Shares

--

277

298

(7%)


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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

26.78%

25.06%

1.72

Operating Margin

15.10%

13.73%

1.37

Net Margin

10.10%

9.14%

0.96
*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$394

$352

11.9%

Accounts Rec.

$223

$227

(1.8%)

Inventory

$80

$74

8.1%


Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$1,212

$1,240

(2.3%)

Long-Term Debt

$1,932

$1,590

21.5%


Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

Change

Cash From Ops.

$1,007

$995

$12

Capital Expenditures

$290

$337

($47)

Free Cash Flow

$717

$658

$59
*36 weeks ended Sept. 9, 2006, and Sept. 3, 2005

Find out why Fools always follow the money.

Related companies:

  • McDonald's (NYSE:MCD)
  • Wendy's (NYSE:WEN)
  • Chipotle Mexican Grill (NYSE:CMG)
  • Burger King (NYSE:BKC)
  • Sonic (NASDAQ:SONC)
  • Jack in the Box (NYSE:JBX)

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.

Fool contributor Ryan Fuhrmann is long shares of McDonald's, but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.