Yum Brands Beats Estimates on China Growth

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Yum Brands (YUM) rose in after hours trading as the company continued to post robust sales growth in China, where its fast-food chains are proliferating.

Yum posted 75 cents of EPS, a penny ahead of analysts’ expectations. The owner of KFC, Taco Bell, and Pizza Hut, said same restaurant sales rose 21% in China, and 1% in the U.S. Restaurant margins declined by 1.1 percentage points to 14.3%, the company said.

“The highlight of 2011 was again the exceptional performance of our China business, which grew system sales by 29% and operating profit by 15%, prior to foreign currency translation. We opened a record 656 new restaurants and delivered extraordinary same-store sales growth of 19%,” the company said.



Original Article Source by Barrons.com