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Earnings

Yum earnings miss Street estimate

CNBC.com With Reuters
A customer eats Kentucky Fried Chicken (KFC) in an outlet in Shanghai on January 9, 2013. Chinese customers of KFC.
Peter Parks | AFP | Getty Images

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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Yum Brands reports Q3 earnings miss

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.