Yum earnings miss Street estimate
Yum Brands, the parent company of KFC and Taco Bell, reported quarterly earnings and revenue that missed analysts' expectations on Tuesday.
Following the report, shares dropped in after-hours trading. (Click here to track the company's shares following the report.) Other fast-food stocks, including Wendy's and McDonald's, also edged lower after the announcement.
Net income was $152 million, or 33 cents a share, down from $471 million, or $1 a share, a year earlier.
Excluding special items, including a $258 million write-down related to its Little Sheep business in China, among other items, adjusted earnings fell to 85 cents from 99 cents.
Revenue decreased to $3.47 billion from $3.57 billion a year ago.
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Analysts had expected the company to report earnings excluding items of 93 cents a share on $3.53 billion in revenue, according to a consensus estimate from Thomson Reuters.
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Yum's China same-restaurant sales fell 11 percent in the third quarter, as the company grappled with the after-effects of a food safety scare and bird flu outbreak.
Based on the disappointing sales results from China, and a higher than expected full-year tax rate, Yum now expects a high-single to low-double-digit percentage full-year earnings per share decline versus the prior year. It previously had expected a mid-single-digit percentage decline in earnings per share.