Yum! Brands, Inc. (NYSE: YUM), which owns brands including Pizza Hut, KFC and Taco Bell, announced its third-quarter financial results. Due to the improved performance at Pizza Hut division, both earnings and revenue beat analysts’ previous estimates.
The company reported revenue of $1.44 billion for the third quarter, beating estimates of $1.39 billion. Global sales at established restaurants were up 3% for the third quarter, surpassing estimates of 1.7% gain.
In addition, Pizza Hut reported a 1% gain in global sales at established restaurants, Taco Bell reported 3% same-store sales growth, and KFC reported 4% sales growth for restaurants open at least one year.
Net income from continuing operations increased to $418 million, or $1.18 per share. The increase was motivated by strong restaurant sales, a lower effective tax rate and cost controls. Excluding certain items, earnings per share was $0.68, beating estimates of $0.67 per share.
“Don't expect any heroics, but we do believe we can, by getting the foundations in place and doing the right things, continue to progress our Pizza Hut U.S. performance,” Greg Creed, the CEO of Yum Brand, said in the earnings conference call on Thursday.
“So I just feel good about the performance we are making, the steady progress we are making. We are making the brands more distinctive, more relevant and easier. And I think all of that is going to help us get to the long-term goal,” Greg said.