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.
"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.