According to a news report from Bloomberg.com, “Yum! Brands Inc., the owner of the Pizza Hut and KFC restaurant chains, said second-quarter profit increased more than analysts anticipated on higher sales in China and a lower tax rate. The company boosted its annual profit forecast by 1 cent to $1.63 a share.”
“Net income rose 12 percent to $214 million, or 39 cents a share, exceeding estimates by 3 cents. A year earlier, profit was $192 million, or 34 cents, Louisville, Kentucky-based Yum said today in a statement. Operating profit at restaurants in China, where Yum plans to open 400 locations this year, climbed 14 percent. The company has expanded overseas as it faces increased competition in the U.S. from McDonald’s Corp. and slumping sales at its Taco Bell restaurants following an E. coli outbreak last year,” said the story.
According to the article, “The real story for Yum is growth in China,” said Scott Rothbort, president of Lakeview Asset Management LLC in Millburn, New Jersey, which owns Yum shares.”