Earnings

Yum earnings beat, but key China metric misses

Yum Brands China comps down 10%
VIDEO1:3901:39
Yum Brands China comps down 10%

Yum Brands delivered mixed quarterly results on Tuesday, and a key China metric missed estimates.

Following the report, Yum stock ticked 1 percent lower. (Click here to track its shares following the report.)

The parent of KFC, Pizza Hut and Taco Bell delivered earnings per share of 69 cents, down from 73 cents in the prior-year period.

Revenue fell 3 percent to $3.11 billion from $3.20 billion.

Wall Street forecast Yum Brands would deliver quarterly earnings of 62 cents per share on $3.19 billion in revenue, according to a consensus estimate from Thomson Reuters.

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China same store sales, an important metric, declined 10 percent.

"We expect substantial same-store sales and profit growth in the second half given overall trends in sales and brand perceptions. Furthermore, the China Division remains on track to open at least 700 new restaurants this year, laying the groundwork for future growth," said Yum CEO Greg Creed in the release.

Analysts forecast China, a key segment for Yum, would be especially hard hit during the quarter following continued perception issues after a supplier scandal last year. Comparable sales in China were forecast to drop 8.4 percent, according to Consensus Metrix.

The restaurant company also reconfirmed its full-year 2015 EPS growth guidance of at least 10 percent.