(YUM) - YUM! Brands, Inc - 14 analysts submitted upward revisions over the past 30 days

YUM! Brands, Inc. (YUM) exceeded analysts’ earnings expectations for the past 15 quarters, most recently by 9.2%. Earnings per share are projected to grow 12% over the next 3-5 years. After reporting solid results for the third quarter, the company raised its full-year 2006 profit guidance. The Board of Directors announced a quarterly dividend of 15 cents per share and expanded its share repurchase program by $500 million in mid September. Full Analysis YUM! Brands, Inc. engages in the development, operation, franchising and licensing of quick service restaurants. Its restaurant brands comprise KFC, Pizza Hut, Taco Bell, Long John Silver and A&W All-American Food Restaurants. YUM is the world's largest restaurant company in terms of system restaurants with over 34,000 restaurants in over 100 countries. YUM’s history of beating the Street’s earnings estimate is truly remarkable. The company exceeded analysts’ earnings expectations for 15 consecutive quarters. Earnings per share grew 12.4% over the past five years. On Oct 11, YUM announced third-quarter profits of $230 million, or 83 cents per share. With analysts expecting 76 cents per share, the company produced a solid 9.2% positive earnings surprise. Total revenues grew slightly to $2.28 billion from $2.24 billion in the prior-year period. Profits increased 26% in China and the country now sports nearly 1,700 KFC restaurants—an increase of 18% over the same period last year. YUM stated that KFC is opening a new restaurant in China every day. YUM increased revenues and expanded gross margins over the past four years. The company grew profits for five years running. Strong growth from its China Division, coupled with double-digit growth from its Yum! Restaurants International Division, prompted the company to raise its full-year 2006 earnings per share guidance. YUM now expects profits of $2.89 per share, compared to its previous outlook that called for $2.83. Analysts responded to the company’s bullish guidance by revising their profit forecasts for 2006, with 14 submitting upward revisions over the past 30 days. The consensus jumped six cents to $2.90. For the full year of 2007, 15 analysts upped their earnings estimates. The consensus rose seven cents to $3.21. Earnings per share are projected to grow 11.7% over the next 3-5 years. The Board of Directors made two announcements on Sep 14 in an effort to enhance shareholder value. The Board approved a quarterly dividend of 15 cents per common share of stock. The company is currently yielding 1.0%. Also, an additional $500 million was added to YUM’s share repurchase program. Year-to-date the company bought back $853 million of its stock. YUM is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home