KFC earnings ... grow in China , reversing in US

Yum Brands Beats Estimates as China Sales Jump

Yum Brands reported first-quarter earnings and revenue that exceeded Wall Street projections, pushed higher by an improving business picture in China.

The Louisville, Ky.-based restaurant chain said it earned 59 cents a share excluding one-time items in its first-quarter, compared with 48 cents a share this time last year.

Sales for the most recent quarter reached $2.35 billion, up from $2.22 billion in the same period last year.

Analysts who follow the company projected Yum earning 53 cents a share on sales of $2.26 billion.

Shares of Yum rose more than 3 percent in extended trading Wednesday. Get after-hour quotes for Yum Brands here.

The company's stock [YUM 41.68 0.52 (+1.26%) ] finished the regular New York Stock Exchange session at $41.68. Volume exceeded 7.8 million shares before the closing bell.

Yum's net income, which includes one-time charges and other items, rose to $241 million, or 50 cents per share, from $218 million, or 46 cents per share, a year earlier.

Yum's worldwide operating profit grew 13 percent prior to foreign currency translation, including a 37 percent surge in China and 2 percent international growth. However, the results were offset by a 9 percent decline in the U.S.

"We are particularly pleased with our business in China, which reported robust profit growth of 37 percent—this was driven by new unit growth of 14 percent and same-store-sales growth of 4 percent," David Novak, CEO of Yum, said in a prepared statement.

"We now have over 3,500 restaurants in China, strengthening our leading position in the world's largest growth market," he continued. "We expect to further that lead by opening about 500 new restaurants in China this year."

In the United States, profits were down 9 percent and same-store-sales declined 1 percent.

source : CNBC