Yum Brands just reported third quarter earnings that came in below expectations.
The company reported adjusted earnings per share of $US0.87. Revenues totaled $US3.35 billion.
Expectations were for earnings of $US0.89 per share on revenue of $US3.4 billion.
Yum reported third quarter systems sales in its China Division fell 9%, and declined 14% on a same-store basis. Yum said that the July report uncovering improper food handling by one of its former suppliers, Shanghai Husi, continued to weigh on its China sales.
The company said foreign currency translation negatively impacted operating profit by $US6 million.
Yum Brand also said it sees 2014 earnings growing 6%-10%, saying that, “it is difficult to confidently forecast the exact trajectory of China sales,” and the company expects China sales to improve, but still be negative for the fourth quarter.
In after hours trade following the report, shares of Yum were down about 0.5%.
Yum Brands, which has a significant presence in China, is seen as strong barometer for that economy’s consumer.
More to come …
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