Apr 23, 2014 01:47 PM EDT
Yum! Brands 1Q Earnings Rise 18% On Increased Sales in China

Yum Brands posted a higher-than-expected profit on Tuesday for its first quarter earnings on the back of higher sales in China.

The company, which also owns Taco Bell and Pizza Hut, said Tuesday that sales at established locations in China rose 9 percent for the period. The China Division opened 123 new units in the first quarter. Meanwhile, worldwide restaurant margin increased 3.3 percentage points to 19.2% in the first quarter.

China system sales increased 17 percent due to a combination of 7 percent unit growth and 9 percent same-store sales growth. That includes an 11 percent same-store sales increase in the quarter for KFC, and 8 percent at Pizza Hut.

For the quarter, Yum Brands Inc. earned $399 million, or 87 cents per share, topping the 84 cents per share analysts expected. A year ago, it earned $337 million, or 72 cents per share.

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