Yum Brands raises profit forecasts on China growth

Yum Brands (YUM.NYSE), the owner of KFC, Pizza Hut and Taco Bell, expects profits to rise in 2011 and predicted continued high growth in 2012, thanks to its ventures in China, Reuters reported. The company adjusted its 2011 earnings per share estimate upward to a rise of at least 13%, compared to the 12% previously predicted, while earnings per share are expected to rise at least 10% in 2012 on a systemwide sales increase of 13%. Yum recorded disappointing sales this year in the US, CEO David Novak said, and owes its the growth to its 4,200 locations in China, its top market for profit and revenue. Shares in Yum have climbed 13.7% since its October announcement of an 8% profit increase in the third quarter, Forbes reported.