Yum gets big boost from overseas sales

louisville, ky. -- Fast-food giant Yum Brands Inc. said Monday that its third-quarter profit rose 17% on the strength of surging sales in its international and China divisions that offset sluggishness in the United States, led by slumping Taco Bell.

The operator of KFC, Taco Bell and Pizza Hut reported 28% profit growth in its China division and 21% growth in its international division for the three months ended Sept. 8. Yum’s U.S. operation had a scant 1% profit growth for the period.

Overall, net income rose to $270 million, or 50 cents a share, from $230 million, or 42 cents, in the same quarter a year earlier. Analysts polled by Thomson Financial expected earnings per share of 45 cents.

Louisville,Ky.-based Yum said it planned up to $4 billion in share repurchases in the next two years.

The company predicted that 2007 would be its sixth straight year of exceeding its target of at least 10% annual earnings per share growth.

Yum’s revenue rose 13% to $2.56 billion. Analysts predicted revenue of $2.44 billion.

Much of the increase was due to the company’s international division, in which revenue jumped 43%.

Quarterly revenue jumped 31% in Yum’s China division, which includes China, Thailand and Taiwan.

In the U.S., meanwhile, revenue fell 6%. System same-store sales, including franchisees’ sales, rose 1% from a year ago as growth in franchise performance offset a 1% decline for company restaurants.

Company same-store sales fell 6% at Taco Bell, which is trying to recover from an E. coli outbreak at some of the chain’s East Coast restaurants last year that sickened 70 people.

Shares of Yum Brands rose $1.94 on Monday to $36.29.