Yum gains from rising performance in China, posts 23% income rise in Q3
October 11, 2012, 12:11 am TWN
LOUISVILLE, Kentucky--The owner of the Taco Bell, Pizza Hut and KFC chains, Yum Brands Inc., said Tuesday that its fiscal third-quarter net income rose by 23 percent on a turnaround in its fast-growing China division and higher demand in the U.S.
The Louisville, Kentucky, company raised its earnings guidance for the year. Shares rose nearly 4 percent in after-market trading.
Operating profit in China rose 22 percent, when adjusted for currency fluctuations. Its costs for ingredients and workers didn't rise as fast as it had in the second quarter, when operating profit dropped. The profit decline had been a rare event for Yum's key China division.