Yum Brands Inc. updated its full-year guidance and China’s same-store sales on Thursday, saying its sales in China are “difficult” to forecast thanks to “ongoing volatility.” China’s same-store sales could range from flat to 4% in the fourth quarter, with positive same-store sales growth at KFC and negative same-store sales at Pizza Hut, Yum said. For the full 2015, same-store sales in China are expected to be low-single-digit negative, and operating profit is expected to be about flat in relation to prior year, the restaurant chain said. The company also said it expects dollar strength to negatively impact its full-year EPS growth rate by 1 to 2 percentage points. Overall, the company expects EPS growth to range from about flat to low-single-digit positive for the full year 2015. Yum also said it will report monthly same-store sales starting in November to provide investors “greater visibility to sales trends in China.” Shares rose 2.3% in late trading Thursday after ending the regular trading session up 1%.
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