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Yum fails to satisfy investors as quarterly profit drops 6pc
YUM BRANDS, parent of the KFC, Taco Bell and Pizza Hut chains, issued a disappointing full-year earnings outlook yesterday and said it expects labour costs to rise in its key China market, sending shares down 3.1 per cent.
Yum raised its full-year earnings per share forecast to $2.43 from $2.39, based on results from the first half of the year, lower than consensus estimates of $2.48 per share.
But net income for the quarter ended June 12 fell six per cent to 59 cents per share, or $286m, from 63 cents per share, or $303m, a year earlier when it booked a $68m gain related to increasing its stake in the operator of the KFC business in Shanghai. Total revenue was $2.57bn compared with $2.48bn a year earlier.