KFC owner reaffirms forecast, cites consumer environment as their “biggest challenge”
Yum! Brands, the owner of the KFC and Pizza Hut brands, has reaffirmed its full year 2009 EPS growth forecast of 12% and expects further growth of beyond 10% in 2010.
“2009 has been a year of solid performance led by our China and Yum! Restaurants International businesses, and we remain on track to deliver 12% EPS growth,” David Novak, Chairman and CEO, said. “This performance has been driven by our industry leading international new unit development, favourable commodity costs, productivity gains across our businesses and a lower effective tax rate.”
“Our biggest challenge continues to be driving same-store-sales growth in the difficult consumer environment. All indications are that 2010 will be another challenging year, and we have built our plans accordingly.”
Next year’s growth is likely to stem from favourable currency movements, international expansion (1,400 new stores are planned) and “modest” same-store sales growth.