Tricon Says Second-Quarter Profit Will Fall

Tricon Global Restaurants Inc., operator of Taco Bell, Pizza Hut and KFC restaurants, said it will earn less in its second quarter than a year earlier and that annual profit will beat estimates. Second-quarter earnings will be 70 cents to 74 cents a share, Chief Financial Officer David Deno said. In the year-ago second quarter, Tricon earned 76 cents a share. Profit was forecast to be 79 cents, the average estimate of seven analysts polled by First Call/Thomson Financial. Tricon said first-quarter profit fell 8.3% and revenue, including franchise fees, fell 5.7%. Taco Bell sales have been hurt by unsuccessful promotions, slow service at its drive-through windows and declining cleanliness in its stores, analysts and investors said. The second-quarter forecast is the first Tricon has given to analysts, Deno said. Shares of Louisville, Ky.-based Tricon fell $2.50 to close at $42.25 on the NYSE.They had risen 36% this year. Tricon said it still expects full-year profit of $3.18 a share, one cent more than the average estimate of analysts.