Yum Brands sees double-digit EPS growth in 2009

LOUISVILLE, Ky. - Fast-food company Yum Brands Inc. on Thursday predicted earnings-per-share growth of at least 10 percent in 2009, excluding special items.

The Louisville-based parent of Taco Bell, Pizza Hut and KFC also reaffirmed its 2008 earnings-per-share-growth forecast of 12 percent, excluding special items.

Analysts surveyed by Thomson Reuters forecast earnings per share of $1.90 in 2008 and $2.08 in 2009, implying year-over-year growth of 9.5 percent.

"We look forward to illustrating how our global portfolio of brands will continue to build on our consistent track record of earnings-per-share growth, led by international new unit development, same-store-sales growth and industry-leading returns," said David C. Novak, Yum's chairman and CEO.

Same-store sales, a key metric for retailers and restaurant chains, measures sales at locations open at least a year.

The company has previously forecast continued strong growth in its international business, led by its rapidly expanding China division.

Yum has had mixed U.S. results but has expressed confidence in achieving 5 percent growth in 2009, predicting a turnaround at struggling KFC, a lessening of commodity inflation and improved cost management.

Yum said Thursday its forecast for 2009 would mark the eighth straight year of double-digit EPS growth. It will provide further details next week at an investor presentation in New York.

The company's brands also include Long John Silver's and A&W All-American Food.

In after-hours trading, shares rose 40 cents to $28.11. The stock ended the regular session up 67 cents, or 2.5 percent, at $27.71.

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