Yum Brands Profit Jumps on China Business

According to the Wall Street Journal, “Yum! Brands Inc. on Wednesday said its first-quarter earnings rose 11%, helped by strong sales in China, a market critical to the restaurant chain.”

“Yum, which operates KFC, Pizza Hut and Taco Bell chains, has pinned much of its future on the fast-growing Chinese market, where it operates more than 3,500 KFC and Pizza Hut restaurants and plans to open 500 more locations this year. After a recent slowdown, Yum said same-store sales increased 4% in mainland China, exceeding analyst expectations, while profits rose more than a third. Results benefited from strong sales at the Chinese New Year.”