Yum Brands, the world's largest restaurant company with nearly 38,000 KFC, Pizza Hut and Taco Bell outlets in 120 countries, reported a 4.8 per cent growth in second-quarter earnings. The company raised dividend 18 per cent to 33.5 cents from 28.5 cents.
According to David Novak, the CEO, the company has more than doubled its dividend payout over the past five years. Its revenues have expanded nearly a third in five years.
The company reported a profit of $331 million, up from $316 million a year earlier. Revenues expanded by 12 per cent to $3.17 billion.
While same-store sales in the US grew by seven per cent in the quarter and operating earnings were up by 26 per cent, in China same-store sales were up by 10 per cent. China and other emerging markets including India continue to remain the focus of the American giant.
Last year, Yum Restaurants India became a separately reported division, underscoring the potential scale of the country as a key emerging market. The India unit, along with Yum! China and Yum! Restaurants International, contributes to the robust international growth of the group.
In India, the group operates more than 200 KFCs and nearly 170 Pizza Hut restaurants with strong unit growth. KFC is the fastest growing quick-service restaurant brand in India, and Pizza Hut has been ranked as the most trusted food-service brand for the sixth year in a consumer survey by The Economic Times. India also has nearly 100 Pizza Hut Home Service units. Taco Bell has also entered the country.