Yum Brands (YUM), parent company of KFC, Pizza Hut and Taco Bell, reported an earnings beat on both the top and bottom lines, and international sales were better-than-expected.
Same-store sales globally for Yum grew at 2% which was stronger than the 1.8% growth that was projected, according to analysts polled by Bloomberg.
Same-store sales at KFC, Yum’s largest brand, grew at a 3% rate, beating analysts’ estimates of 2.2%.
Sales at Taco Bell stores grew at a better-than-expected rate of 5% which was higher than 3% growth expected by analysts.
However, Pizza Hut reported a sales decline of 1% versus analysts’ consensus of 0.2% growth.
“We are pleased to deliver third-quarter system sales growth of 5%, consisting of same store sales growth of 2% and net new unit growth of 4%. Core operating profit growth of 2% was consistent with our expectations. We are now two years into our three year transformation and remain firmly on-track to becoming more focused, more franchised and more efficient,” CEO Greg Creed said in a statement.
The fast-food chain earned $1.04 per share which was above Wall Street’s expectation of 58 cents per share.
Yum also reported better-than-expected revenue at $1.39 billion versus $1.38 billion.
Shares were 2% higher in pre-market trade on Wednesday.