NEW YORK – Yum Brands Inc. (YUM), owner of the KFC and Taco Bell fast-food chains, on Wednesday said third-quarter earnings rose nearly 16 percent on strong sales in the United States and growth overseas.
Yum, whose shares rose 5 percent, said net income rose to $214 million, or 72 cents a share, from $185 million, or 61 cents a share, a year earlier.
Excluding special items, the company earned 71 cents a share, a penny better than the average forecast among analysts polled by Reuters Estimates.
Revenue rose 3 percent to $2.24 billion, compared with analysts' average forecast of $2.25 billion.
For the fourth quarter, Yum forecast earnings of 78 cents a share, in line with Wall Street expectations.
The Louisville, Kentucky-based company previously warned that earnings for the second half of the year would be hurt by taxes related to the repatriation of foreign earnings.
Yum shares were up $2.43 to $50.70 in early trade on the New York Stock Exchange. The shares have traded in a 52-week range of $53.79 to $40.22.
Yum shares have risen nearly 3 percent in the past six months, compared with a decline of more than 1 percent for the S&P Restaurants Index.