Asahi Associates - Yum Brands Shares Get Boost.


Asahi Associates - Yum Brands third quarter profits jump by 23%, based largely on strong sales growth in China.

Wisconsin (I-Newswire) November 21, 2012 - Yum Brands, which owns fast food brands Pizza Hut, Kentucky Fried Chicken and Taco Bell among others, reported a $471 million net profit, up 23% on the previous year, for the ending of the third quarter. In a recent meeting Asahi Associates reported to investors that China accounted for more than 50% of Yum's $3.6 billion revenue for the quarter.

After struggling domestically last year, Yum is recently showing signs of a comeback in the oversaturated, depressed U.S. marketplace. Taco Bell's new Doritos Locos Tacos, with a nacho cheese Doritos taco shell, took off earlier this year, and now it is adding "cool ranch" and other Doritos-flavored shells.

The chain is building on that strength with its new "Cantina Bell" menu, which launched nationally in early July and focuses on fresher and higher-quality ingredients.

Since June, the group has opened 394 new restaurants, of which 192 new units were in China, which contributed to its sales growth. Globally, profits for the group grew 18% during the period. The company beat its earnings targets and has raised its full year outlook.

Taco Bell's U.S. same-store sales rose 7% in the latest quarter, compared with a 6% increase at Pizza Hut and a 4% boost at KFC.

Yum Brands based in Louisville, Kentucky, is the largest western based restaurant operator in China, where operating profits, adjusted for currency fluctuations, rose by 22%. Operating profits in the U.S. rose by 13%. Yum Brands has approximately 5,000 stores in China, while there are over 18,000 stores in the U.S.

Asahi Associates announced to investors that Yum Brands intend to open a minimum of 1,750 new stores this year outside of the United States, which would represent a new record. Yum Brands have invested heavily in overseas expansions, an investment that seems to be paying dividends.

Customer numbers have been declining recently in China due to the economy, but Yum Brands allegedly stated that revenues at existing restaurants will still grow slightly while new store launches will help to drive revenue growth. Yum Brands is opening two new stores each day on average in China.

Some analysts working with Asahi Associates have reportedly raised concerns that some new stores will simply steal business from existing ones, however Yum Brands have begun to focus on expanding into smaller cities rather than on urban growth, alleviating some of those fears.






About Global Journal

Global Journalists deliver crucial knowledge backed up by a state-of-the-art global network that inc   More..ludes some of the world's best minds in communication.Less..

Contact Information

Global Journal
Marvin Chaffin
4511 Saint Francis Way
West Allis
53227
Phone : 262-910-5152

Published in:

Business

Published On:

November 21, 2012

Print Release:

Print Release

If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.


Related Releases

EMS Internet Reviews: A Look at the New After Effects CC
Graphic artists and photo editors now have a new thing in the market that can improve their job a notch better and easier with its advanced features. The new Adobe After Effects CC has hit the market, with a range of great and better features and too

World Bioinformatics Market Will Grow at a CAGR of Over 23.0% from 2014 to 2020
GrandViewResearch.com has announced the addition of "Global Bioinformatics Market Analysis And Segment Forecasts To 2020" Market Research report to their Database.

L'Oral SA to Revolutionise Digital Beauty Experiences Globally with Sitecores Experience Platform
April 16, 2014 - Sitecore, the global leader in customer experience management software, announced today that Sitecore's experience platform has been selected by The L'OrŠ¹al Group to enable their marketers to deliver personalised customer experiences

Properties in Delhi and NCR - Living Full of Delight and Contentment
properties in Delhi and NCR - Delhi is considered to be most favored destinations for real estate investment. It is best location to live, play and work. It homes numerous of property dealers.

The Dark Horse at the South African Service Awards Is Purple
At the recent South African Service Awards, the purple-brand First Car Rental scooped the illustrious 'Most Consistent Performer over the Past Three Years' Award defeating all of South Africa's big industry and retail contenders.