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International strength helps Yum

International strength helps Yum

Yum Brands Inc., the operator of KFC, Taco Bell and Pizza Hut fast-food chains, said Tuesday its first-quarter profit climbed 14 percent as a sharp rise in international sales offset lackluster U.S. results in the wake of an E. coli outbreak and rat infestation at Taco Bell restaurants.
The quarterly results beat Wall Street expectations by a wide margin and prompted the company to raise its outlook for the full year.
For the three months ended March 24, net income rose to US$194 million, or US$0.70 per share, from US$170 million, or US$0.59 per share, in the prior-year period.
Revenue grew 7 percent to US$2.22 billion from US$2.09 billion in the first quarter of 2006.
Wall Street had forecast profit of US$0.64 per share on sales of US$2.16 billion, according to a poll by Thomson Financial.
The company said it was able to beat expectations due to its strong international sales, which jumped 56 percent in the quarter to help offset a 12 percent drop in sales in U.S. stores.
Yum Brands blamed the lower U.S. sales on an E. coli outbreak last year that caused more than 70 Taco Bell customers to become sick, mostly in the Northeast.
Sales also were hurt by a public relations nightmare in February, when a TV news camera recorded scores of rats running through a New York City KFC/Taco Bell restaurant. The video, showing rats scurrying across floors and climbing tables and counters, was broadcast on the Internet, causing an uproar around the world.


Updated : 2021-05-09 01:50 GMT+08:00