Shares in Yum! Brands Inc (NYSE:YUM) rose after the KFC, Pizza Hut and Taco Bell owner served up second-quarter earnings that beat Wall Street forecasts, but revenues were lower than expected.
Underlying earnings per share in the three months to June came to $1.35, down from EPS of $1.41 a year ago, but beat the consensus estimate of $1.32 per share, per Zacks.
Revenues of $1.76 billion were up from $1.69 billion a year ago but missed the consensus forecast of nearer $1.8 billion.
Last week YUM said it was rolling out "voice AI" technology in its Taco Bell drive-through restaurants having employed it in more than 100 outlets across 13 US states so far.
The technology is "designed to enhance back-of-house operations for team members and elevate the order experience for consumers," the Louisville-based company said, with benefits for staff said to include easing task load and improving order accuracy, while for customers it leads to a more "friendly experience and reducing wait times".
CEO David Gibbs said the fast-food chains "managed through a challenging operating environment" to increase core operating profit by 10%.
Taco Bell in the US and the more international KFC were the "twin growth engines," delivering 5% sales 'system' growth led by 8% growth in the number of outlets.
Based on results for the first half, Gibbs said the group continue to expect to deliver at least 8% core operating profit growth this year.
"Meanwhile, as we progress into the next phase of our technology and digital journey, we are laying the groundwork for another promising year in 2025 as evidenced by the expansion of drive-thru voice AI technology at Taco Bell.”
The shares climbed up 2.7% to $136.93,