Yum expects a same store sales drop of 8% for Q4 in the US

Yum! Brands Inc., operator and franchisor of KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W, said same-store sales for its final quarter this year will be negative across the board, especially with continued weakness in the United States.

In an update Friday, Louisville-based Yum said same-store sales for the December-ending quarter are expected to decline 3 percent in mainland China, typically the company’s strongest region, and fall 1 percent in other international markets. Same-store sales are expected to drop 8 percent in the U.S.

“Our biggest challenge continues to be driving same-store sales growth in the difficult consumer environment,” chief executive David Novak said in a statement. “All indications are that 2010 will be another challenging year …”

Despite projecting continued sales weakness, the company reaffirmed its 2009 earnings per share guidance, which it said will increase by 12 percent from 2008, excluding special items.