Yum! Brands Inc. (YUM) reported 2Q13 earnings on Wednesday, July 10th after market hours. The company revealed that it earned $0.56 per share (excluding special items) in the period on revenue of $2.53 billion. Analysts were expecting earnings of $0.54 per share on revenue of $2.9 billion. Food safety concerns in China over Avian flu caused revenues for the quarter to fall 8%, from $3.17 billion last year to $2.9 billion in 2Q13.
With concern over food quality subsiding in China and the continued international growth and expansion into emerging markets, we reiterate our BUY rating for Yum! Brands Inc.