Categories
Local News

Yum Brands Earnings Report Shows Damage From Taco Bell Lawsuit

Fast-food restaurant operator Yum Brands Inc. says its U.S. business remains in the doldrums as its Taco Bell brand tries to recover from publicity surrounding a dropped lawsuit over the beef content of its taco filling.

Yum Chief Financial Officer Rick Carucci told industry analysts Thursday that the company is bracing for another double-digit drop in operating profit in its U.S. business in the third quarter.

In reporting second-quarter earnings Wednesday, the owner of the Pizza Hut, KFC and Taco Bell brands said its U.S. operating profit fell 28 percent.

The company expects its surging business in China and other foreign markets to more than offset the domestic declines.

Yum posted 10 percent growth in its second-quarter profit and raised its earnings forecast for the full year.

From the Associated Press

Categories
Local News

Yum Brands Selling Long John Silver’s, A&W

Yum Brands is putting its A&W and Long John Silver’s chains on the market.

The Fortune 500 company purchased the two chains in 2002, and is now looking for buyers. Yum officials did not return requests for comments, but in a press release, company officials said the sale is necessary as Yum focuses on expanding its KFC, Pizza Hut and Taco Bell chains domestically and internationally, specifically in China.

Most of Yum’s profits come from abroad, and the company hopes to make 75% of its profits in China by 2015.

Officials say the sale of Long John Silver’s and A&W is not expected to hurt profits. Yum owns more than 37 thousand restaurants worldwide. The two chains account for just over 16 thousand of those.