Yum Brands Inc., operator of the KFC, Taco Bell and Pizza Hut chains, said fourth-quarter profit fell 3.8 percent on costs for software and expensing stock options.
Net income dropped to $226 million from $235 million a year earlier. Per-share profit was unchanged at 77 cents after the company bought back shares during the year. Sales in the period ended Dec. 31 rose 4.1 percent to $2.9 billion.
Profit was cut by expenses of $6 million for employee stock options and $7 million to cancel software development projects. The chain was hurt in China, its fastest growing market, by concerns over avian influenza and an incident where a cancer- causing dye was put in some foods.
Same-store sales at Yum rose 4 percent in the U.S., led by 7 percent increases at Taco Bell and KFC. Same-store sales at Pizza Hut dropped 1 percent. Pizza Hut continues to be hurt by competitors including Domino's Pizza Inc., which has offered customers new products and better prices.