Louisville, KY, United States (4E) – Yum Brands Inc.’s profit in the fourth quarter fell 4.7 percent, but the parent company of KFC, Pizza Hut and Taco Bell posted a modest gain in revenue.
The company also confirmed its 2014 full-year forecast of at least 20 percent rise in per-share earnings.
Chief Executive David Novak said the company is on track in meeting its earnings per-share growth rate in 2014, and it has the ability to return to its double-digit EPS growth pace.
The company’s total revenue at its important China division jumped 6 percent to $2.27bn in the final three months of 2013, while same-store sales fell 4 percent, including a 5 percent growth at Pizza Hut and 4 percent drop at KFC. Operating profit at the division was higher by 9 percent from last year to $220mn.
Yum posted a quarterly profit of $321mn, or per-share earnings of 70 cents, lower than $337mn, or 72 cents, from the preceding year. Stripped of some items that include tax benefit and pension settlements, adjusted per-share earnings increased to 86 cents from 83 cents.
The company combined its international and U.S. divisions into three global brand divisions of KFC, Taco Bell and Pizza Hut effective Jan. 1.