The “bounce-back year” that Yum! Brands Inc. officials predicted for 2014 gained momentum in the June 14-ended second quarter, as net income soared 18.9 percent from a year earlier, to $334 million, or 73 cents per share.
Initiatives in its China division produced a 15-percent same-store sales increase and a 188-percent jump in operating profit, as that country laps last year’s anomalous sales declines from the Chinese public’s concern over the supply of poultry.
Performance in the United States among Louisville, Ky.-based Yum’s three flagship brands was mixed, as same-store sales fell 2 percent at KFC and 4 percent at Pizza Hut, but rose 2 percent at Taco Bell.
Yum operates or franchises more than 40,000 restaurants in more than 125 countries.
2Q NET INCOME
Result: $334 million, or 73 cents per share% Increase: 18.9% (from $281 million, or 61 cents per share)
2Q REVENUE
Result: $3.2 billion% Increase: 10.3% (from $2.9 billion)
2Q SAME-STORE SALES
% Increase China: 15%
% Decrease India: 2%
% Increase KFC: 2%
% Decrease Pizza Hut: 3%
% Increase Taco Bell: 2%
Source: Company report
RELATED:
• China recovery drives 18.4% jump in 1Q profit for Yum
• Yum: China, Taco Bell breakfast off to good start in 1Q
• More restaurant finance news
This story has been revised to reflect the following correction:
Correction: July 16, 2014 An earlier version of this story misstated in the headline Yum's net income growth. Yum's second-quarter net income rose 18.9 percent.
Contact Mark Brandau at [email protected].
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