Tricon Restaurants Nearly Doubles 4th-Quarter Profit
Tricon Global Restaurants Inc., the No. 2 U.S. restaurant company and operator of Taco Bell, Pizza Hut and others, said Thursday that fiscal fourth-quarter earnings nearly doubled as it boosted sales at restaurants and trimmed operating costs, sending its shares higher.
Tricon said profit from operations rose to $87 million, or 55 cents a share, from $44 million, or 30 cents, in the year-earlier period. That was better than expectations of 50 cents, the average estimate of analysts surveyed by First Call Corp. After charges and gains, Tricon had a loss a year earlier.
The company has been streamlining operations since its October 1997 spinoff from PepsiCo Inc. by closing unprofitable restaurants and cutting expenses.
Shares of Louisville, Ky.-based Tricon rose $5 to close at $58.75 on the New York Stock Exchange, a record.
Revenue fell 9.6% to $2.53 billion from $2.79 billion, as Tricon continues to reduce the number of restaurants it owns and relies more on fees from franchised restaurants. Systemwide sales at the company’s nearly 30,000 restaurants, including sales of franchised restaurants, rose to $6.42 million from $6.36 million.
At a Glance
Other earnings, excluding one-time gains and charges unless noted:
* Aurora Foods Inc., the San Francisco producer of Duncan Hines, Log Cabin and other packaged foods, reported fourth-quarter net income rose to $18.5 million, or 28 cents, compared with $7.3 million, or 11 cents, a year ago. Sales rose to $279.6 million, compared with $241.7 million.
* Agoura Hills-based Guitar Center Inc. said fourth-quarter earnings for the period ended Dec. 31 were $13.6 million, or 66 cents per share, compared with net income of $12.7 million, or 61 cents, a year earlier. Sales rose $30% to $119 million from $91.3 million. The company opened four new stores in the fourth quarter.
* 20th Century Industries of Woodland Hills reported a net loss of $5.2 million, or 6 cents per share, for the fourth quarter ended Dec. 31, compared with net income of $19.3 million, or 23 cents, a year ago. Revenue rose to $218.1 million from $217.9 million.
