China business behind Yum's profit surge
17 July 2008
Yum! Brands, the owner of KFC, Taco Bell and other fast food chains, saw its second-quarter income rise 4% on the back of strong sales in China, the Wall Street Journal reported. Profits totaled US$224 million for the quarter ending June 14, over US$214 million the previous year. The company's same-store sales in China jumped 14%, while overall sales grew 43% as 95 new units were opened. In the US, same-store sales grew 2%. Yum expects overseas sales to account for 70% of its total profit in 10 years, compared with 55% today. The company's China-based restaurants currently deliver over a quarter of total operating profits.