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.