Yum Brands profit jumps in 2Q

LOUSVILLE, Ky. -- The operator of Pizza Hut, Taco Bell and KFC said Tuesday its profit jumped 35% in its fiscal second quarter on strong growth overseas, an improved tax rate and increased ownership in its business in China.

Yum said it earned $303 million, or 63 cents a share for the quarter compared with $224 million, or 45 cents a share in the same quarter last year.

Revenue fell roughly 7% to $2.5 billion.

Adjusted for special items, the company earned 50 cents a share.

Analysts expected the company to earn 43 cents a share on revenue of $2.5 billion. Analyst estimates typically exclude one-time items.

Yum saw its same-store sales grow in overseas markets but drop 1% in the U.S., where it is struggling with higher-priced brands such as Pizza Hut.

The company maintained its guidance for the year, saying it expects to earn $2.10 a share for the year — 10% growth over the prior year.

Analysts are anticipating $2.12 a share for the year. Investors were not pleased with the full-year outlook and sent shares down more than 3% in after-hours trading. Shares rose 56 cents to $36.23 in regular trading.