Yum Brands (NYSE:YUM) on Thursday reported that its quarterly revenue rose 8%, fueled by Taco Bell’s return to positive same-store sales growth.
Yum reported third-quarter net income of $283 million, or 92 cents per share, up from $255 million, or 81 cents per share, a year earlier.
Yum’s investment in Grubhub lifted earnings per share by two cents this quarter due to changes in its fair value. The KFC owner, which had disputed the terms of the agreement with Grubhub this summer, also said it sold its stake for $206 million.
Excluding expenses from items including a voluntary early retirement program and restructuring, the company earned $1.01 per share, topping the 80 cents per share expected by analysts.
Net sales of $1.45 billion was 8% higher than a year earlier, beating expectations of $1.42 billion. Same-store sales across Yum fell 2%, but the company’s digital sales set a record for a quarter, reaching $4 billion.
Taco Bell reported same-store sales growth of 3%. Last quarter, the chain saw its same-store sales fall 8%, hurt by lower demand from early morning and late-night customers.
Yum’s other brands reported same-store sales declines in the quarter. KFC’s and Pizza Hut’s results were dragged down by lagging demand in their international markets. KFC’s global same-store sales fell 4%, despite U.S. same-store sales growth of 9%. Pizza Hut reported global same-store sales declines of 3%. The pizza chain’s quarterly same-store sales rose 6% in the United States.
YUM shares lost $2.29, or 2.4%, to $92.71.
