Yum Brands Inc , parent of the Taco Bell, Pizza Hut and KFC chains, said a lower-than-expected tax rate helped it report a quarterly profit that topped analysts' view, but it didn't raise its earnings outlook for 2009 and its shares fell 3.3 percent.
Second-quarter net income rose to $303 million, or 63 cents per share, for the quarter ended June 13, compared with net income of $224 million, or 45 cents per share, a year earlier. The company previously had said that the second quarter would likely be its most challenging and a low point for the year.
Profit excluding special items was 50 cents per share, handily topping analysts call for earnings of 43 cents per share, according to Reuters Estimates.
The company's effective tax rate fell to 12.8 percent from 14.9 percent in the year ago quarter.
Total revenue fell to $2.48 billion from $2.66 billion.
Yum also maintained its forecast calling for per-share earnings growth of at least 10 percent in 2009 and said it continues to see full-year earnings of $2.10 per share, excluding items. Analysts are expecting $2.12 per share.
Same-store sales in mainland China fell 4 percent, but other international markets gained 1 percent. U.S. same-store sales fell 1 percent after Pizza Hut posted an 8 percent decline in sales at established restaurants.
Shares in Yum closed up 1.6 percent, or 56 cents, to $36.23 on the New York Stock Exchange, but fell to $35 in extended trade.
(Reporting by Lisa Baertlein; Editing Bernard Orr)