Yum Brands Reports 3.8% Decline in Profit

Fast-food chain operator Yum Brands Inc. said its fourth-quarter profit fell 3.8% on costs for software and expensing stock options.

Net income dropped to $226 million from $235 million a year earlier. Per-share profit was unchanged at 77 cents after the company bought back shares during the year.

Fourth-quarter sales rose 4.1% to $2.9 billion, the Louisville, Ky.-based company said. Same-store sales at Yum rose 4% in the U.S., led by 7% increases at Taco Bell and KFC. Same-store sales at Pizza Hut dropped 1%.

Quarterly profit was cut by expenses of $6 million for employee stock options and $7 million to cancel software development projects. The chain was hurt in China, its fastest-growing market, by concerns over bird flu and an incident in which a cancer-causing dye was put in some foods.

Yum released its earnings report after the markets closed. Its stock rose 1.6% to $52 in after-hours trading after ending the regular session at $51.17, up 72 cents.