LOS ANGELES: Yum Brands Inc>, parent of the KFC, Taco Bell and Pizza Hut chains, said higher costs for labor and commodities would hit margins in the current quarter, and its shares fell 1.2 percent in extended trading on Tuesday, Oct 5.
The company reported a 7 percent rise in third-quarter net profit, helped by better-than-expected China sales, and boosted its profit outlook for the full year.
Shares in the fast-food company slipped 1.2 percent to $46.20 from their session close of $46.80.
Net income for the quarter ended Sept. 4 rose to $357 million, or 74 cents per share, from $334 million, or 69 cents per share, a year earlier.
Excluding items, Yum earned 73 cents per share in the latest quarter, to top analysts' average view by 1 cent, according to Thomson Reuters I/B/E/S.
Total revenue was $2.86 billion compared with $2.78 billion a year earlier. Sales at restaurants open at least one year were up 6 percent in China, versus analysts' call for a rise of 4 percent. Yum gets 35 percent of its profit from China.
The company raised its 2010 earnings target to $2.48 per share from $2.43 per share previously. - Reuters
The company reported a 7 percent rise in third-quarter net profit, helped by better-than-expected China sales, and boosted its profit outlook for the full year.
Shares in the fast-food company slipped 1.2 percent to $46.20 from their session close of $46.80.
Net income for the quarter ended Sept. 4 rose to $357 million, or 74 cents per share, from $334 million, or 69 cents per share, a year earlier.
Excluding items, Yum earned 73 cents per share in the latest quarter, to top analysts' average view by 1 cent, according to Thomson Reuters I/B/E/S.
Total revenue was $2.86 billion compared with $2.78 billion a year earlier. Sales at restaurants open at least one year were up 6 percent in China, versus analysts' call for a rise of 4 percent. Yum gets 35 percent of its profit from China.
The company raised its 2010 earnings target to $2.48 per share from $2.43 per share previously. - Reuters
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