Yum! Brands Earnings: Revenues Not Tasty Enough for Investors

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Yum! Brands, Inc. (NYSE:YUM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.30%.

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Yum! Brands, Inc. Earnings Cheat Sheet

Results: Net income decreased -5.34% to $337 million (83 cents per diluted share) in the quarter versus a net gain of $356 million in the year-earlier quarter.

Revenue: Decreased 12.67% to $3.59 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Yum! Brands, Inc. reported adjusted net income of 83 cents per share. By that measure, the company beat the mean analyst estimate of $0.82. It missed the average revenue estimate of $4.12 billion.

Quoting Management:

David C. Novak, Chairman and CEO, said, “We delivered full-year 2012 EPS growth of 13% or $3.25 per share, excluding Special Items. This marks the 11th consecutive year we delivered at least 13% growth, which puts us in an elite group of high-growth companies. We also take satisfaction with our record level of international development in 2012 which lays the foundation for future growth and makes Yum! a leader in emerging market development. With new-unit development at the core of our growth model and the continued rapid expansion of the consuming class overseas, we believe our opportunity for long-term growth has never been better…

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