Earnings Preview: Yum Brands

OVERVIEW: The Louisville-based parent company of Taco Bell, KFC and Pizza Hut chains has been focusing on building up its international business, which is now one of the biggest drivers of its profit.

In its second quarter, the company again relied on its international operations to offset its slumping U.S. profits. Like most restaurant chains, Yum has been hit hard by high costs for commodities.

The company's KFC brand was another soft spot for the company, reporting weak sales and profit.

BY THE NUMBERS: Yum has not offered any outlook for the quarter. Analysts polled by Thomson Reuters expect profit of 54 cents per share on revenue of $2.78 billion.

ANALYST TAKE: Buckinghman Research analyst Mitchell J. Speiser said in a note to investors that sales growth in China likely slowed in the quarter. But, he added, profit in the region--which now makes up 37 percent of the company's profits--is expected to rise more than 30 percent.

WHAT'S AHEAD: Investors will likely be watching to see whether the slowdown in consumer spending which is hurting the sales and traffic of casual dining restaurants in the U.S. also is hurting Yum's sales or if it's actually helping, as customers trade down in price. The company offers a number of value-focused meals at its Taco Bell chain and has attempted to reinvigorate its Pizza Hut menu with new pasta offerings.

STOCK PERFORMANCE: Shares rose 0.1 percent in the quarter and dropped about 8 percent during the past 52 weeks.