Yum Brands Profit Rises 10%

Fast-food giant Yum Brands Inc. posted a 10% gain in fourth-quarter profit Tuesday, fueled by robust international earnings and strong gains domestically at Taco Bell and Pizza Hut. The company raised its earnings outlook for 2005.

For the quarter ended Dec. 25, Yum reported net income of $235 million, or 77 cents a share, up from $214 million, or 70 cents a share, in the year-earlier period.

The company posted earnings of 73 cents a share excluding one-time items, a penny higher than the consensus estimate of 72 cents a share from analysts surveyed by Thomson First Call.

In extended trading Tuesday, Yum shares rose 46 cents to $46.30, after closing at $45.84, down 51 cents, in the regular session on the New York Stock Exchange.

The Louisville, Ky.-based company reported a 20% increase in earnings for the full year and predicted continued strong earnings. Yum’s brands also include KFC, Long John Silver’s and A&W; All-American Food Restaurants.

For the full year, net income rose to $740 million, or $2.42 a share, compared with $617 million, or $2.02 a share, the previous year.

Total revenue rose 5% to $2.79 billion for the quarter, versus $2.65 billion in the same period a year earlier. For the year, revenue rose 8% to $9.01 billion from $8.38 billion in 2003.