Yum! Brands Inc. downgraded its outlook for the year on Tuesday, saying negative trends in China will continue into the fourth quarter. For its Sept. 7-ended third quarter, the company recorded a 68-percent decline in net income. Same-store sales fell 11 percent in China, where the company’s KFC brand has not yet recovered after concerns were raised about poultry quality in the region earlier this year. In the U.S., same-store sales were flat for the third quarter. For the year, the company now expects a high-single to low-double-digit decline in earnings per share, excluding special items, compared to earlier projections of a mid-single-digit decline. Louisville, Ky.-based Yum Brands operates or franchises 37,446 restaurants under the KFC, Taco Bell, Pizza Hut and other brand names worldwide, including 16,042 in the U.S.
NET INCOME
Result: $152 million, or 33 cents per share (excluding charges related to the Little Sheep brand in China)% Decrease: 68% (from $471 million, or $1 per share)
REVENUE
Result: $3.5 billion% Decrease: 3% (from $3.6 billion)
SAME-STORE SALES
% Decrease at KFC: 4%
% Increase at Taco Bell: 2%
% Decrease at Pizza Hut: 1%
Source: Company report
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This article has been revised to reflect the following correction:
Correction: October 9, 2013 This story has been updated to state that Taco Bell's same-store sales increased by 2%.
Contact Lisa Jennings at [email protected].
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