KFC Owner Yum Logs Mixed 4Q Results

KFC Owner Yum Logs Mixed 4Q Results
Aaron M. Sprecher/Bloomberg via Getty Images
By Matt Egan

Yum Brands (YUM) logged a lighter-than-expected 5 personal drop in fourth-quarter earnings on Monday, but the owner of KFC and Pizza Hut posted sales that trailed forecasts.

Despite the mixed results, shares of the fast food giant rallied 4 personal in after-hours action.

Yum said it earned $321 million, or 70 cents a share, compared with a profit of $337 million, or 72 cents a share, a year earlier.

Excluding one-time items, it earned 86 cents a share, exceeding the Street's view of 80 cents.

Revenue ticked up to $4.18 billion, but that missed consensus calls from analysts for $4.26 billion. Excluding currency fluctuations, global system sales increased 3 personal.

Yum said same-store sales slid 4 personal in China and 2 personal in the U.S. KFC China same-store sales dropped 4 personal during the fourth quarter,
which is an improvement considering KFC sales tumbled 15 personal on the year.

The company acknowledged that its sales in China were "significantly impacted" by the December 2012 poultry supply incident and "subsequent news of avian flu."

"While 2013 was a challenging year, I`m pleased to report continued progress as we enter 2014," Yum CEO David Novak said in a statement.

Looking ahead, Novak said his management team is "confident" it has the people and resources to deliver at least 20 personal earnings growth this year.

Shares of Louisville, Ky.-based Yum advanced 3.94 personal to $68.77 in extended trading Monday evening. That more than makes up for the shares' 1.47 personal decline during regular trading.


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