Yum! Brands, the owner of Taco Bell, Pizza Hut and KFC, has reported a rise in third quarter sales, with a continuing increase in sales across its c.4,200-strong estate in China, offsetting further declines in the US. Revenue rose 14% during the three months to 3 September to $3.27bn, whilst net income stood at $383m up from $357m on the previous year. It Chinese operations, which now account for more than 40% of Yum's profits, saw operating profits rise 19%, while operating profit rose 7%. David Novak, chairman and chief executive of Yum! Brands, said: “This tremendous sales growth, combined with our expectation to open a record 600 new restaurants this year, gives us even more confidence our China business model is as strong as ever.” The group’s international businesses excluding China reported same-store sales growth of 3% during the quarter. It opened 193 new stores internationally during the quarter. The increase in same-store sales in China and its international operations offset a decline in the US, which reported a 3% drop in like-for-like sales and a 16% drop in profit. It saw a 3% drop in sales across is Pizza Hut and KFC estates in its home market and a 2% decline at Taco Bell. Novak said: “Were obviously disappointed in our US performance. We have aggressively developed a pipeline of category leading innovation and have productivity initiatives planned, which we believe will improve sales and profit performance in 2012.” Analysts said sales in the US were impacted by the continuing negative publicity from a lawsuit, since dropped, that alleged its beef didn't qualify as such by Food and Drug Administration standards. The company recorded a $76m impairment charge for the sale of its UK Pizza Hut stores to franchisees, which was partially offset by a tax benefit of $53m from losses related to the sales of its Long John's and A&W brands.