Yum forecasts profit rise led by China
YUM Brands, the parent of the KFC, Taco Bell and Pizza Hut fast food chains, raised its 2011 profit forecast and said it expects earnings per share to grow 10% in 2012, led by sales growth in China.
Yum raised its 2011 earnings per share forecast to $2.85, excluding one-time items, meaning growth of at least 13% despite what CEO David Novak said were “disappointing" US results.
Yum has nearly 4 200 restaurants in China, mostly KFCs. China is Yum’s top market for profit and revenue. Yum said it expects system sales to be up at least 13% in 2012, and for same-store sales there to rise at least 5%.
Shares were up 1.1% to $56.89 in premarket trading.