"Our international businesses continue to generate strong, consistent growth," CEO David Novak said in releasing the results. "Our proven capability of generating global growth with high returns and substantial free cash flow gives us confidence that we are on track to deliver another year of solid financial performance."

Two publicized health incidents "had the most significant impact on US performance," Novak acceded, but the firm says it will still open more than 1,000 units globally this year and has raised its earnings per share projection in FY 2007 to 11% ($3.23), up from 10%. If achieved, it would mark the sixth straight year the firm has registered double-digit EPS appreciation. Listed on the New York Stock Exchange, Yum shares closed at $66.73 on Wednesday.

Yum's China Division covers the mainland plus KFC Taiwan and Thailand. Strong unit expansion of KFC and Pizza Hut in mainland China accounted for much of the increase in profitability during the first quarter, according to the company. Sales were up 18% to $331 million, and same-store sales in that division rose by 9% for the quarter.