Yum! Brands Inc (NYSE:YUM), the owner of fast food chains from Pizza Hut to KFC chicken, reported on Wednesday beats in both third quarter earnings and revenue due to a steady rise in its sales, prompting shares to rise in premarket trade.
The company said quarterly EPS came in at $1.04, beating both last year's EPS of $0.68 and the consensus of $0.83. Revenue stood at $1.39 billion, above the consensus of $1.38 billion but under the year-ago quarter of $1.44 billion.
Worldwide system sales excluding foreign currency translation grew 5%, with Taco Bell at 8%, KFC at 7%, and Pizza Hut flat.
“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%," said company CEO Greg Creed.
Shares of YUM rose 3.27% in the premarket to $89.26, having closed on Tuesday 1.12% higher at $86.43.
READ: Yum! Brands tick higher premarket after its market-beating fourth quarter numbers
Creed said: "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. The collective power of our three iconic brands, anchored by our four key growth drivers, is helping us deliver long-term sustainable growth and higher returns for our stakeholders."
YUM opened 410 net new units for 4% net new unit growth. The Taco Bell Division opened 59 gross new restaurants, including 22 gross new international restaurants.
The company refranchised 134 restaurants, including 57 KFC, 31 Pizza Hut and 46 Taco Bell units.
YUM is a fast foods company which is based in Louisville, Kentucky.
Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com