Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Shares in Yum! Brands fall slightly after poor same-store sales in China

Published 07/14/2015, 06:41 PM
Updated 07/14/2015, 06:50 PM
© Reuters.  Yum Brands, the parent company of Taco Bell, saw its EPS fall during the 2Q

Investing.com -- Shares in Yum! Brands Inc (NYSE:YUM), the parent company of Pizza Hut, KFC and Taco Bell, fell mildly in after-hours trading after its second quarter earnings were dented by weak same restaurant sales among its branches in China.

Yum Brands, an American multinational Fortune 500 company based in Louisville, posted second quarter earnings of $253 million or 0.53 per share significantly below earnings per share of 0.73 during the same period in 2014. The owner of Wingstreet Worldwide and Super Chix also earned revenues during the quarter of $3.1 billion, down slightly from $3.2 billion in last year's second quarter. Sales from Yum's Taco Bell division swelled 9%, while revenues from KFC increased by 6% during the period that ended in mid-June.

While Yum reported a 14.6% margin in its restaurants from its Chinese division, same restaurant sales in China over the quarter fell sharply by approximately 10%.

“EPS exceeded our original expectations in the second quarter and I'm pleased with the continued progress we are making in China, as well as the performance from our Taco Bell and KFC Divisions. I’m confident we will deliver full-year EPS growth of at least 10%, driven by a strong second half in China and solid brand-building initiatives underway at each of our divisions," Yum Brands CEO Greg Creed said in a statement.

Yum expects same-restaurant sales figures to rebound in the second half of the year given current sales and brand perceptions in China. In addition, Yum said it is on track to open 2,100 new restaurants worldwide this year including 700 in China.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Our goal remains building three iconic, global brands people trust and champion, while delivering shareholder value through our three key drivers: same-store sales growth, new-unit development and high returns on invested capital," Creed added. "As we continue to strengthen our business around the world, I'm confident that this formula will produce consistent double-digit EPS growth over the long term."

Shares in Yum Brands fell 0.47 or 0.53% in after-hours to 91.53.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.