Updated from 4:47 p.m. EDT

Second-quarter earnings for Yum! Brands ( YUM) rose 8% year over year, and the restaurant operator raised its guidance, saying growth should be robust in its China and international divisions.

The same couldn't be said for the U.S., where Yum is predicting same-store sales will probably grow only 1% in 2006. Previously, the owner of KFC, Pizza Hut and Taco Bell had been planning on 2% to 3% growth.

The cut might have been contributing to a brutal after-hours session for Yum's stock. On the INET ECN, Yum was quoted at $40.69, down $8.44, or 17.2% from the 4 p.m. EDT close. However, only 500 shares had been matched. Yum rose $1.53, or 3.2%, to $49.13 in regular trading.

For the second quarter, the Louisville, Ky., company posted revenue of $2.18 billion, up 1% from $2.15 billion last year. Yum earned $192 million, an increase of $14 million from the prior year. On a per-share basis, the company earned 68 cents, up from 59 cents a year ago.

Analysts surveyed by Thomson Financial were calling for a second-quarter profit of 62 cents and a top line of $2.19 billion.

For the full year, Yum raised its earnings outlook to at least $2.83 a share from at least $2.81. The new projection matches expectations.

"Our China business is obviously experiencing booming growth," the company said Wednesday. "It's particularly impressive that we are achieving record second-quarter restaurant margin as we are on track to open another 400 new restaurants this year. In addition, our Yum! Restaurants International Division brings strong business trends into the second half and is expected to exceed our target of opening at least 750 new restaurants for 2006."