Chain-restaurant operator Yum Brands Inc has reported an 18 per cent increase in its net profit for the third quarter of current financial year, in lines with China's robust performance for the period.
The company, having popular brands, such as Taco Bell, KFC and Pizza Hut, hoped to do even better in the forthcoming quarter. Yum also expects an increase in earning per share, given the rising response to its products.
The brand suffered a 5 percent sales drop in the United States that was offset by lower commodity expenses and other cost cutting measures. Yum's net income showed 69 cents per share increase in the quarter under observation, and earned 70 cents after every share. However, its revenue declined by 2 per cent to $2.78 billion for the quarter ending September.
Pizza Hut reported 13 per cent increase in its sales in US, obviously, under the impact of global slowdown. Larry Miller, a restaurant analyst with RBC Capital Markets, expressed surprise over its unexpected performance and said: "The category is down, but the other guys are holding (steady). So they're taking some share from Pizza Hut right now."
Chairman and Chief Executive of the firm, David C. Novak said: "We are more confident than ever in the consistent earnings power of our global portfolio."
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