Yum! Brands Down On Q2 Report, Despite Strong International Growth
Yum! Brands (NYSE: YUM) shares are trending lower Wednesday following the food giant’s second-quarter results.
The company reported sales of $3.2 billion for the quarter, slightly missing the $3.23 billion estimate. Year over year this is a 10.3 percent improvement. Sales growth was driven by a 21 percent increase in Chinese sales and 18 percent increase in India.
Other division highlights include five percent KFC growth, three percent Taco Bell growth and one percent Pizza Hut growth.
Earnings beat the analyst consensus by 1.4 percent at $0.73 per share. Compared to the same quarter last year, EPS jumped 30.4 percent. Despite the sales increase, Yum was actually able to decrease restaurant expenses and total expenses by eight percent each.
Related Link: Janney Sends McDonald's Down With Sales Estimate
Regarding cash returned to shareholders, the press release noted that 4.6 million shares were purchased at an average price of $76 for a total of $346 million.
Looking forward, CEO David Novak commented, “I’m confident we are building momentum behind major initiatives around the world that will sustain double-digit EPS growth in 2015 and beyond.”
Shares of Yum last traded down 2.36 percent to $80.55 in the after-hours session.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.