Yum profit jumps, and so do shares

YumYUM‘s second-quarter profit rose as its China business continued to show signs of recovery, posting its third consecutive quarterly increase in a key sales metric. The results handily beat forecasts on the bottom line, but missed on the top. Excluding special items, Yum reported earnings per share of 95 cents vs. 80 cents a year ago. Revenue was $2.62 billion. Analysts surveyed by Thomson Reuters had projected 83 cents a share on $2.65 billion in revenue (MarketWatch). Citing the results, Yum raised its projections for growth in core operating profit to 12%, from its previous target of a 10%. Here’s the press release. Wall Street liked the news; Yum shares rose nearly 4% to a recent $85.67 in extended trading. The China unit is Yum’s top profit-driver, and investors are focused on how the company will separate that business and how richly it will be valued (Reuters via NYT)

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