A Kentucky Fried Chicken (KFC) fried chicken bucket can be seen in this image illustration on April 6, 2017. REUTERS / Carlo Allegri
(Reuters) – Yum Brands Inc. (YUM.N) outperformed Wall Street revenue and earnings estimates in the third quarter on Wednesday, as strong sales by the KFC and Taco Bell chains counteracted Pizza Hut's continued weakness.
Fast food chains in the US, including Yum Brands and McDonald's Corp. (MCD.N) are competing hard for more customers with cheaper menu items, discounts and new breakfast menus.
Taco Bell, Yum's fastest-growing brand, posted a 5 percent increase in sales in the same restaurant, exceeding expectations by 3 percent.
Same-store sales also increased 3 percent at KFC, outperforming analyst estimates.
However, Pizza Hut remained a dark spot for the company as sales in the same restaurants fell 1 percent this quarter due to declines in the US and China, where it faces intense competition.
Excluding one-off income, Yum earned $ 1.04 per share, exceeding analysts' average expectation of $ 83 (according to Refinitiv estimates).
Yum's net income for the three months ended September 30, 2008 increased to $ 454 million, or $ 1.40 per share, from $ 418 million, or $ 1.18 per share, the previous year
Total revenue declined 3 percent to $ 1.39 billion, but exceeded analysts' average estimate of $ 1.38 billion.
Reporting by Aishwarya Venugopal in Bengaluru; Arrangement of Arun Koyyur and Saumyadeb Chakrabarty