Earnings Preview: Yum Brands Inc. Reports Tuesday

According to the Associated Press, “Yum Brands Inc. is scheduled to report its earnings for its fiscal third quarter on Tuesday after the market closes. The following is a summary of key developments and analyst opinion related to the period.”

“OVERVIEW: Restaurant operator Yum Brands Inc. has consistently logged strong growth in earnings per share and has predicted a 10 percent increase for the full year over the prior year. But this year is shaping up as challenging. The Louisville, Ky.-based operator of Taco Bell, KFC and Pizza Hut lowered its sales forecasts for two key markets — China and the United States — in the summer. But Yum has continued to post strong earnings aided by aggressive restaurant expansions overseas and lower commodity costs. Strong performance at KFC as it rolled out Kentucky Grilled Chicken in the second quarter also helped. The company has said it was on track to open some 1,400 new restaurants overseas this year, maintaining its fast pace for expansion.”