LOUISVILLE, Ky.--Feb. 6, 2012-- Yum! Brands Inc. today reported results for the fourth quarter ended December 31, 2011 including EPS of $0.75. Reported EPS for the full year was $2.74. Full year and fourth quarter results for Yum! Restaurants International (YRI) and the U.S. reflect the benefit of an additional week. This 53rd week did not impact China Division results.

FULL YEAR HIGHLIGHTS
 

• Worldwide system sales grew 7%, prior to foreign currency translation, including 29% in China
• Same-store sales grew 19% in China, 3%
• Record international development with 1,561 new restaurants, including 656 in China
• Worldwide operating profit grew 8%, including a positive impact from foreign currency translation of $77 million. Prior to foreign currency translation, operating profit grew 4%, including 15% in China

FOURTH QUARTER HIGHLIGHTS
 

• Worldwide system sales grew 11%, prior to foreign currency translation, including 33% in China
• Same-store sales grew 21% in China
•  Operating profit grew 15% in China

David C. Novak, Chairman and CEO said, “I’m pleased to report full-year EPS growth of 14%, making 2011 the tenth consecutive year we exceeded our annual target of at least 10%.

The highlight of 2011 was again the exceptional performance of our China business, which grew system sales by 29% and operating profit by 15%, prior to foreign currency translation. We opened a record 656 new restaurants and delivered extraordinary same-store sales growth of 19%. Clearly, our KFC and Pizza Hut brands in China continued to strengthen their category-leading positions. Emerging markets contributed nearly 50% of operating profit at Yum! Restaurants International. The Yum! growth story is clearly about China and a whole lot more.

CHINA DIVISION
 

• China Division system sales increased 29% for the year and 33% in the fourth quarter, prior to foreign currency translation, driven by same-store sales growth and new-unit development.
  • KFC same-store sales grew 19% for the year and 22% in the fourth quarter.
  •  Pizza Hut Casual Dining same-store sales grew 17% for the year and 15% in the fourth quarter.
  • Pizza Hut Home Service same-store sales grew 19% for the year and 25% in the fourth quarter.
  • China division same-store sales growth was driven by a 21% increase in same-store transactions for the year, including 20% in the fourth quarter.
• China opened a record 656 new units during the year, including 327 in the fourth quarter.
• Total revenues for the year surpassed the $5 billion mark, at $5.6 billion.
• Restaurant margin decreased 2.4 percentage points to 19.7% for the year, driven by commodity inflation of 8% and wage rate inflation of 20%. Consistent with expectations, restaurant margin decreased 2.4 percentage points to 15.8% in the fourth quarter. This decline was driven by 11% commodity inflation and 18% wage rate inflation.
• Foreign currency translation positively impacted operating profit by $43 million for the year and $11 million in the fourth quarter.