KFC’s parent company Yum Brands says its profit fell 68 percent in the third quarter, as its China unit struggles to recover from a controversy over its chicken supply and bird flu scare.
Results missed expectations and Yum lowered its outlook. Shares fell 6 percent in aftermarket trading.
Yum, which also owns Taco Bell and Pizza Hut, says net income for the quarter ended Sept. 7 fell to $152 million, or 33 cents per share. Excluding a write down related to its Little Sheep chain in China, net income was 85 cents per share. That compares with net income of $471 million, or $1.02 per share last year. Analysts expected 93 cents per share.
Revenue fell 4 percent to $3.02 billion, missing expectation s of $3.54 billion. ASSOCIATED PRESS
EARNINGS
Alcoa posts slim 3Q profit on lower costs
Alcoa says it swung to a profit in the third quarter despite lower aluminum prices, as it was helped by demand from auto makers and by cost-cutting moves.
Alcoa Inc. said Tuesday that it earned $24 million, or 2 cents per share, compared with a year-ago loss of $143 million, or 13 cents per share.
The company says that excluding restructuring costs, it would’ve earned 11 cents per share.
Analysts were forecasting a profit of 5 cents per share after special items.
Revenue is down 1 percent to $5.77 billion, but that is better than the $5.64 billion analysts were forecasting. ASSOCIATED PRESS
IPOs
NYSE, Nasdaq woo Twitter
Twitter’s stock debut is the biggest coming-out party since Facebook, and Wall Street’s largest exchanges are fighting to host it.
The company has yet to announce an exchange, but when its shares go public — most likely before Thanksgiving — Twitter executives could either ring the opening bell on the floor of the New York Stock Exchange or sign Nasdaq Stock Exchange’s digital screen.
Either way, the initial public offering is much more than a photo op for the winner. Listing Twitter’s shares and overseeing their trading means adding revenue at a time when NYSE and Nasdaq are losing business and struggling to keep up with changes in trading technologies. Hosting this year’s hottest tech debut also gives the winner an edge when it tries to lure other IPOs, especially in the fertile area of social media.
Both Nasdaq and NYSE are courting Twitter heavily. Bloggers, traders and the mainstream financial media are buzzing with rumors about Twitter’s choice. On Friday, CNBC reported that Nasdaq’s CEO was visiting Twitter’s headquarters. Earlier reports said the micro blogging service was leaning toward NYSE. ASSOCIATED PRESS
About the Author