Yum Brands Inc., owner of the Taco Bell, Pizza Hut and KFC chains, said Wednesday its second-quarter net income rose 5 percent, overcoming a rare setback in China with the help solid sales elsewhere, including supersized gains at U.S. Taco Bell stores.
The company said its operating profit sagged by 4 percent in China, adjusted for currency fluctuations, as a result of high commodity inflation that squeezed restaurant profitability. The company also ramped up around-the-clock operations and home delivery at more KFC stores in China, another contributor to higher costs, said Jonathan Blum, a Yum senior vice president. Meanwhile, U.S. operating profit was up 26 percent.
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