Restaurant operator Yum Brands Inc. (YUM) estimated adjusted
earnings for fiscal 2014 will rise "at least" 20% from the prior
year's level, a target that suggests the company could meet Wall
Street's latest expectations.
Analysts surveyed by Thomson Reuters expected Yum will report
24% bottom line growth for 2014, on the assumption profit for the
current fiscal year totals $2.91 a share.
Yum outlined some expectations for the upcoming fiscal year,
including a plan to open at least 1,850 new international locations
and spend $1.2 billion on capital expenditures.
The parent company of the KFC, Taco Bell and Pizza Hut chains
also reported same-store sales in China increased an estimated 1%
in November. Results for the period were bolstered by a limited
time "half priced" bucket promotion at KFC, helping that chain
achieve flat same-store sales for the month. Pizza Hut's same-store
sales rose 7% in China.
Yum is still facing challenges in China as consumer fears over
food safety have had a prolonged impact on sales in the region. Yum
is embarking on its latest phase of a publicity campaign aimed to
assure consumers its chicken is safe. Turning around sales in that
market is important as it is Yum's biggest division.
Yum, which intends to hold an annual investor meeting on
Wednesday, touted several themes for 2014. The company hopes to
turn around sales at KFC in China and will unveil a national
breakfast launch at Taco Bell restaurants in the U.S.
Shares slid 2.9% to $75.48 in after-hours trading.
Write to John Kell at john.kell@wsj.com
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