Yum Profit Rises 10% as Sales Gain at KFC, Pizza Hut Restaurants in China

Bloomberg.com reports, “Yum! Brands Inc., owner of the KFC and Pizza Hut restaurant chains, said second-quarter profit gained 10 percent and boosted its earnings forecast for the year as customer traffic increased at restaurants in China.”

“Net income advanced to $316 million, or 65 cents a share, from $286 million, or 59 cents, a year earlier, the Louisville, Kentucky-based company said today in a statement. Profit excluding some items was 66 cents a share, topping the 61-cent average of 18 analysts’ estimates compiled by Bloomberg. Yum, with more than 18,000 locations outside the U.S., said sales at stores in China open at least a year grew 18 percent. In April, Yum said it would buy Little Sheep Group Ltd., which has about 450 hot pot restaurants in mainland China. About one- third of the company’s revenue came from the nation last year.”