Stephanie Nall, Cool Cargoes Editor | Apr 20, 2012 2:51PM EDT
A continuing Chinese love affair with American fast food is translating into solid earnings for Yum! Brands and McDonald’s.
Net income at Yum! Brands rose 73 percent year-over-year to $458 million, equal to 99 cents per share on the common stock, in the first quarter ended March 24. This compared with income of $264 million, or 56 cents per share, in the same period a year ago.
The company said its China business “continues to fire on all cylinders.” Yum! set a new unit development record in China with the opening of 168 new restaurants in the first quarter. Sales in the region grew 28 percent year-over-year, while operating profit rose 14 percent to $256 million from $215 million.
McDonald’s credited strong global sales for its 5 percent year-over-year increase in net income during its first quarter.
McDonald’s also saw U.S. revenue increase because of new menu items. Comparable sales in the Asia/Pacific/Middle East and Africa regions rose 5.5 percent year-over-year, and operating income was up 10 percent.
While the restaurant chains source some food locally, the majority is imported, leading to higher sales of U.S. meat, poultry and potatoes.
Contact Stephanie Nall at stephnall@aol.com. Follow her on Twitter @stephnall and @coolcargoes.
