Earnings were released after trading hours on Tuesday.
The firm had earnings of $235 million for the quarter, or 53 cents per share, versus $334 million, or 73 cents per share, a year ago for the same quarter.
Total sales were $3.1 billion for the quarter, versus $3.2 billion a year prior. Analysts had estimated 63 cents per share, on revenues of $3.19 billion.
Same-store sales in China were down 10 percent, year-over-year, and operating profit was down 25 percent.
Some of this China hit was offset by the ongoing strength of the Taco Bell brand, which saw sales climb 9 percent in the quarter, and operating profits rise 29 percent. Taco Bell also saw fat margins, at 23 percent, up 5.3 percent for the quarter.
The KFC division saw sales up 6 percent for the quarter, with same-store sales up 3 percent.
In an official statement, Yum! CEO Greg Creed said the firm’s China division margins were at 14.6 percent, which he called “encouraging,” even as same-store sales declined. “We expect substantial same-store sales and profit growth in the second half given overall trends in sales and brand perceptions,” he said. He also said the China division remains on track to open 700 new restaurants this year.
Yum! Brands rose marginally on the news, up one percent today, to $92.00.