LOUISVILLE Ky. Yum! Brands’ strong international results, especially in China, helped offset lackluster U.S. performances and a slump by Taco Bell to yield an 11.5-percent year-to year jump in second quarter profit, the fast-food giant said Wednesday.
The parent of KFC, Pizza Hut and other brands earned $214 million, with earnings per share of 39 cents, a 15-percent EPS increase. Revenues for the three months ended June 16 rose 8 percent to $2.37 billion.
Analysts’ consensus expectation was that Yum would earn 36 cents a share on revenues of $2.28 billion. Same-store sales for the quarter increased 2 percent worldwide, including a jump of 7 percent in mainland China, whose total sales grew 25 percent for the quarter on a 19-percent increase in outlets. Yum’s non-China international division posted a 5-percent gain in same-store sales and a 15-percent total sales increase. But blended U.S. same-store sales were flat systemwide and down 3 percent at Yum-owned outlets, reflecting a 7-percent same-store dive by Taco Bell.
Citing strengths in China and elsewhere abroad, Yum increased its full-year EPS growth projection by 1 point to 12 percent, which would yield $1.63 per share for 2007.