Yum! Brands, the owner of Taco Bell, Pizza Hut and KFC, has reported a 5.6% drop in its second quarter profits to $286m. Revenue came in at $2.57bn, up from $2.48bn as it revealed that international growth offset an essentially flat performance in the US A year earlier, it earned $303m; including a $68m one-time gain for increasing and consolidating its stake in KFC in China. Same-store sales were up 4% in China, flat in the US and grew 1% in the company's international division. It said that worldwide restaurant margins had gained one percentage point, boosted by lower costs and higher same-store sales. David Novak, chief executive, said: “A key driver of our overall growth continues to be new unit development in China and the international division. "We continue to expect to open about 1,400 international units this year and remain the industry's leading international new unit developer." The operator, which is due to open a Taco Bell restaurant shortly at the Lakeside shopping centre, has stated it aims to have a “substantial presence” for the brand in the UK. It is also trialling a new Chinese restaurant concept in China called east Dawning.