LOUISVILLE, Ky. – Yum Brands Inc. (YUM) on Wednesday reported that its second-quarter profit rose as the operator of the KFC (search) and Taco Bell (search) fast-food chains continued to see its international business propel sales. But the company lowered its third and fourth quarter guidance, while raising its full-year earnings outlook.
Profit during the quarter climbed to $187 million, or 62 cents per share, from $178 million, or 58 cents per share, last year. Revenue increased to $2.15 billion from $2.08 billion last year.
On average, analysts surveyed by Thomson Financial expected earnings of 57 cents per share on revenue of $2.15 billion.
Based on its second-quarter results, Yum boosted its full-year earnings expectations by 2 cents to $2.62 per share before one-time items. The company said it still expects earnings per share to grow at least 10 percent each year due to its plans to build dominant restaurant brands in China, boost multibranding and expand internationally.
But the company lowered its earnings forecasts for the third and fourth quarters, before items, 70 cents and 77 cents per share, respectively. Yum previously expected earnings of 73 cents and 80 cents per share for the respective third and fourth quarters.
Analysts expect Yum to post earnings per share of 71 cents for the third quarter, 82 cents for the fourth quarter, and $2.62 for the full year.
Yum shares closed down 55 cents at $51.71 on the New York Stock Exchange (search), and later fell 71 cents to $51 in after-hours trading.
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