Yum Brands Inc., a quick service restaurant with over 33,000 units in more than 100 countries and territories, on Wednesday posted second-quarter profit that exceeded analysts’ estimates after cutting restaurant costs.

The operator of the Taco Bell, Pizza Hut and KFC restaurant chains, Yum Brands raised its 2006 earnings forecast on increased sales in China; however, shares were indicated lower in after-hours trade on disappointing U.S. same-store sales in the last month.

The second-quarter gross income jumped 7.9%, to $ 192 million, or 68 cents a share, from $ 178 million, or 59 cents per share, the company said in a statement. Sales aggrandized 1.3%, to $ 2.18 billion, the minimal gain in more than four years.

Sales at the KFC and Taco Bell parent's U.S. restaurants open at least a year dropped 3% overall in the four weeks ended July 15, beneath some analysts' estimates.

"People are concerned about the U.S. same-store sales," said A.G. Edwards analyst Jack Russo, citing a surprising 3% drop at Taco Bell, which has been a major performer in Yum's portfolio. In the same period last year, Taco Bell same-stores sales rose 10%.

“Taco Bell and KFC had good quarters. Pizza Hut is struggling in a tough category,” Jack Russo added.

Revenue in China rose 28% after customer concerns about avian influenza were mitigated, while Taco Bell and KFC restaurants in the United States raised similar sales during the quarter. The company slashed food, paper and payroll expenses.

The Mexican food chain, Yum's management is planning to expand Taco Bell into an international brand in hopes of duplicating the success of KFC and Pizza Hut abroad.

The profits report was released after regular trading yesterday. Shares of Louisville, Kentucky based restaurant company descended 40 cents to $ 48.73 in extended trading. They soared $ 1.53, or 3.2%, to $ 49.13 at 4 p.m. in New York Stock Exchange (NYSE) composite trading. The stock has gained 4.8% in current year.