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Breaking News: Taco Bell Saves the Day

Shareholders of Yum Brands, the owner of Taco Bell, KFC and Pizza Hut, are smiling today after shares shot up over 8% yesterday.

Shareholders of Yum Brands, the owner of Taco Bell, KFC and Pizza Hut, are smiling today after shares shot up over 8% yesterday.

Yum’s profits jumped 23% thanks to their US restaurants. In an ironic twist, China’s growth is slower and the US market – saturated with restaurants – is where Yum found a path to profits.

Yum is expecting 13% earnings-per-share – better than last year’s 12%.

Taco Bell saved the day for Yum. The restaurant chain had been struggling in 2011. This year, Taco Bell cut a deal with Doritos to create Doritos Locos Tacos.

Both companies are Pepsi spin-offs. It’s not hard to imagine executives of both companies sitting for lunch and trying to come up with ways to work together again.

The Doritos flavored taco shells are a hit in the US. Taco Bell’s same store sales rose 7% in the last quarter. Pizza Hut rose 6% and KFC saw a 4% boost. Yum has 18,000 restaurants in the US and almost 5,000 in China.

While KFC is a hit in China, in the US, Taco Bell and Doritos are the restaurant success story of the season.

OCA News Editor

Keeping up with the latest trends in entertainment, Matt Holden brings celeb news to the front page of OCA. Matt loves numbers games and researches the highest paying lottery draws to play.

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