Yum! Brands Cuts FY14 EPS Growth Outlook

(RTTNews) - Yum! Brands, Inc. (YUM) said Tuesday that it now estimates mid-single-digit full year 2014 earnings per share growth, excluding special items, compared to its prior forecast of 6% to 10% growth.

The Louisville, Kentucky-based company said its China Division sales, which were significantly impacted by adverse publicity in July regarding improper food handling practices by a former supplier, continue to recover, but at a slower pace than expected.

The company estimates China Division full year 2014 same-store sales will be negative mid-single digits.

The parent of Taco Bell, KFC and Pizza Hut also said it expects to deliver at least 10% earnings per share growth in 2015, excluding special items.

Analysts polled by Thomson Reuters currently expect the company to post EPS growth of 9.1% for 2014 and 16.7% for 2015.

Greg Creed, Yum! Brand CEO effective January 1, 2015, said, "We are firmly committed to returning to double-digit EPS growth in 2015, delivering at least 10% growth with the potential to do significantly better."

"Overall, we expect to open over 2,100 new international restaurants next year, further strengthening our lead in emerging markets. We remain focused on the three keys to driving shareholder value: same-store sales growth, new-unit development and generating high returns on invested capital. I'm confident we'll deliver full-year EPS growth of at least 10% in 2015 and produce consistent double-digit EPS growth over the long term," Creed added.