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.

Louisville-based Yum BrandsYUMpreviously has said it expected this quarter to be its low point for the year. But CEO David Novak cheered the quarter's results in the difficult economy, noting "dramatic results" from the launch of Kentucky Grilled Chicken at KFC.

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.