Yum Brands Shares Down 1.1% After Sales Miss

Yum Brands Inc. on Tuesday reported second-quarter earnings of $235 million, or 53 cents a share, compared with 73 cents a share, a year earlier. Excluding one-time items, the fast-food operator reported earnings of 69 cents a share. Sales reached $3.1 billion, down from $3.2 billion a year ago. Analysts polled by FactSet had expected the parent company of Pizza Hut, KFC, and Taco Bell to report adjusted earnings of 63 cents a share on sales of $3.2 billion. Worldwide sales rose 3%, the company said. The China division's restaurant margin in the second quarter was "an encouraging 14.6%," but same-store sales there declined 10%, the company said. "We expect substantial same-store sales and profit growth in the second half given overall trends in sales and brand perceptions. Furthermore, the China Division remains on track to open at least 700 new restaurants this year, laying the groundwork for future growth," it said. Shares fell 1.1% in after hours after gaining 1% in the regular session.