Yum Brands Shares Fall As 2015 Outlook Falls Short Of Estimates

MarketWatch Pulse

Yum Brands Inc. shares fell 3.6% in after-hours trade Tuesday, after the company's 2015 outlook fell short of analyst estimates. The fast-food chain said it expects per-share earnings growth of at least 10% for the year, below the roughly 16% growth expected by analysts polled by FactSet. The company is also expecting 2014 EPS growth of 10%, but said sales in China are recovering from a food supply scandal at a slower pace than expected. China same-store sales for 2014 are expected to fall in the mid-single digits. "We have solid plans to drive same-store sales growth and margin improvement in China, while continuing to open new restaurants with confidence in the world's fastest-growing economy," Chief Executive Greg Creed said in a statement. The company is planning to open more than 2,100 restaurants overseas in 2015, with an emphasis on emerging markets. Shares are down 0.5% in the year so far, while the S&P 500 has gained 11%.

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