YUM! Brands Inc. Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

S&P 500 (NYSE:SPY) component YUM! Brands Inc. (NYSE:YUM) reported its results for the third quarter. Yum Brands develops, operates, franchises and licenses a system of restaurants.

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YUM! Brands Earnings Cheat Sheet for the Third Quarter

Results: Net income for YUM! Brands Inc. rose to $383 million (80 cents per share) vs. $357 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 7.3% from the year earlier quarter.

Revenue: Revenue rose 14% to $3.27 billion from a year ago.

Actual vs. Wall St. Expectations: The company reported adjusted net income of 83 cents a share. By that measure, it fell in line with the mean estimate.

Quoting Management: David C. Novak, Chairman and CEO said, “I’m pleased to report EPS growth of 13% in the third quarter, excluding special items. As a result of strong performance in China and other emerging markets, we confidently reaffirm our full-year EPS growth forecast of at least 12%, which will make 2011 the 10th consecutive year we exceed our annual target of at least 10% EPS growth.”

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 76 cents a share to 74 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $2.83 a share to $2.85 over the last ninety days.

Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Wendy’s Arby’s Group Inc. (NYSE:WEN), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Morgan’s Foods, Inc. (MRFD), Papa John’s Int’l, Inc. (NASDAQ:PZZA), Domino’s Pizza, Inc. (NYSE:DPZ), Chipotle Mexican Grill, Inc. (NYSE:CMG), Nathan’s Famous, Inc. (NASDAQ:NATH), Jack in the Box Inc. (NASDAQ:JACK), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC) and AFC Enterprises, Inc. (NASDAQ:AFCE).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)