For the fourth quarter, a key sales figure fell 6 percent in China, in line with the decline the company had forecast last month. It marked the first decline in the region since 2009. A year ago, the figure had increased 19 percent.
For the period ended Dec. 29, Yum said net income fell to $337 million, or 72 cents per share. That's compared with $356 million, or 75 cents per share, a year ago. Not including one-time items, it earned 83 cents per share.
Revenue rose 1 percent to $4.15 billion.
Analysts expected a profit of 82 cents per share on revenue of $4.13 billion, according to FactSet.
The U.S. was a bright spot for the company, with sales at restaurants open at least a year up 3 percent in the quarter, driven by a 5 percent increase at Taco Bell and a 4 percent increase at KFC. At Pizza Hut, the figure fell 1 percent.
For all of 2012, sales at restaurants open at least a year rose 4 percent in China and 5 percent in the U.S. Yum said it opened 1,976 restaurants for the year, including 889 new units in China.
Its shares slid 5 percent to $60.36 in after-hours trading.