Strength at Taco Bell and KFC helps Yum top quarter forecasts

Better-than-expected results at Taco Bell and KFC helped Yum Brands top Wall Street’s forecasts in the third quarter.

But Pizza Hut remained a weak spot on the company’s balance sheet, with same-store sales growth down in the U.S., China and Europe.

Louisville, Kentuckybased Yum said profit rose 8.6 percent to $454 million, or $1.40 per share. Excluding special charges and costs, Yum Brands earned $1.04 per share, topping analyst projections by 20 cents, according to FactSet.

Revenue fell 3 percent to $1.39 billion, but still beat Wall Street forecasts.

Yum shares rose 3.5 percent to $89.34 in morning trading.

Global same-store sales, a key measure for retailers, rose 2 percent, matching expectations. The increase was driven by a 3 percent rise in sales at KFC and a 5 percent rise in sales at Taco Bell, both of which beat expectations.

Yum Brands Inc. CEO Greg Creed said product innovation, value pricing and good advertising are behind Taco Bell’s success. Over the summer, Taco Bell launched a $2 Duo burrito and drink combo and reintroduced its popular Nacho Fries.

KFC saw significant growth overseas. Samestore sales jumped 25 percent in India and 22 percent in Russia and Eastern Europe in the July-September period, the company said.