Comps grew 1 percent in the U.S., while falling 20 percent in China (down 12 percent prior to FX impact).
YRI Division system sales increased 6 percent prior to foreign currency translation, driven by new-unit development and 1 percent same-store sales growth.
India sales rose 24 percent with comps up 2 percent.
Yum! said that June same-store sales declined an estimated 10 percent for the China Division, improving from a 19 percent decline in May. This included an estimated decline of 13% at KFC and 6 percent growth at Pizza Hut Casual Dining. June sales are included in the China Division’s third-quarter results.
Second-quarter EPS declined 16%, which was generally in line with our expectations. KFC sales and profits in China were significantly impacted by intense media surrounding Avian flu, as well as the residual effect of the December poultry supply incident,commented CEO David Novak.
I’m pleased with the very strong performance at Pizza Hut Casual Dining, which delivered solid same-store sales growth as we continue to open new units at a record pace. For the total China Division, we remain on track to open at least 700 new units this year. This means we will have opened about 1,600 units over a two-year period. As KFC sales continue to recover, we expect to have solid momentum in China heading into 2014.
Adjusted EPS expectations for FY13 remains unchanged at about $1.33.