Yum Brands reported quarterly earnings that missed estimates and revenue that edged above. Its crucial China unit saw a less steep than expected drop in same-store sales as the chain continues to battle the impact of a supplier scandal. After the earnings announcement, the company's shares rose extended-hours trading. (Click here to get the latest quotes for Yum.) (YUM) Same-store sales in China were forecast to plunge 19.4 percent, according to Consensus Metrix. Instead, China same-store sales declined 16 percent. Since July, the fast-food giant has seen continued fallout from a scandal that hit one of its food suppliers in Asia. McDonald's also noted it had been impacted by the scandal's impact.
The company posted fourth-quarter earnings of 61 cents per share, down from 86 cents a share in the year-earlier period. Revenue decreased to $4 billion from $4.18 billion a year ago. Yum Brands (YUM) was expected to deliver earnings of 66 cents per share on $3.97 billion in revenue, according to a consensus estimate from Thomson Reuters. Same-store sales at the chain's KFC and Taco Bell division both topped estimates.