Parent company of the world famous Pizza Hut and KFC restaurant chains, Yum! Brands Inc., posted second-quarter profits that surpassed analysts' expectations. sales in its China market helped increase numbers as it started to recover from an investigation of a supplier amid the recent bird flu scare .
Just last year, Yum! Brands'net income fell 15% to US$281 million from US$331 million, the company said yesterday in a statement comparing financial results. An increase of US$0.56 per share was the average of analysts' estimates collected by Bloomberg. Leaving to the side a few elements, profit this year was US$0.56 per share.
Yum! Brands, a Louisville, Kentucky-based company, faced obstacles in China after an outbreak of bird flu concerned diners and drove them away from poultry related restaurants including KFC. A former chicken supplier was also probed for providing meat with excessive antibiotics.
"They are discounting, promoting and advertising pretty heavily to try to get people back into the restaurants. Once you get the traffic, I think you'll be OK," Peter Saleh, a New York-based analyst said in an interview with media.
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