Chinese growth pushes Yum profit higher

Reuters

LOS ANGELES — — Yum Brands Inc., operator of the KFC, Taco Bell and Pizza Hut fast-food chains, posted a bigger-than-expected jump in quarterly profit Tuesday, fuelled by growth in China, and raised its full-year forecast.

Shares at Yum rose 3.8 per cent after it said first-quarter net income jumped to $254-million (U.S.), or 50 cents per share, from $194-million, or 35 cents per share, a year earlier.

Including a gain of 8 cent per share from the sale minority interest in KFC Japan and other items, the per-share profit was 42 cents. Analysts, on average, looked for 40 cents, according to Reuters Estimates.

Worldwide sales at stores open at least one year were up 4 per cent, including 12 per cent growth from its China division.

Yum raised its forecast for 2008 per-share earnings to a range of $1.85 to $1.87 per share, excluding special items that would boost results by 6 cents per share.

Shares rose 3.8 per cent to $39.95 in extended trade, after closing down 1.5 per cent to $38.49 on the New York Stock Exchange.