said Tuesday second-quarter earnings jumped 45%, helped by strong sales overseas. As a result, the company consequently raised its full-year earnings guidance above analysts' estimates.
Shares of the company were moving up 14 cents, or 0.4%, at $37.15 in Tuesday after-hours trading. The stock had closed the regular session up 31 cents, or 0.8%, at $37.01.
The operator of Taco Bell, Pizza Hut and KFC fast-food restaurants said its profit rose in the quarter to $178 million, or 58 cents a share, from $122 million, or 40 cents a share, in the year-earlier period.
Before certain items, the company earned 55 cents a share, compared with the consensus for 52 cents a share. That was up from 48 cents a share in the second quarter last year.
Revenue came in at $2.1 billion, up 7% from the prior year's $1.94 billion. U.S. systemwide same-store sales rose 2%.
The company cited a lower tax rate and strong results from its international segment for the quarter's results. Yum! is in the process of a heavy international expansion, having added 537 new restaurants worldwide this year. It now operates about 33,000 restaurants in more than 100 countries.
Yum!'s two most profitable markets, China and the U.K., increased system sales in local currency terms by 19% and 7%, respectively. Meanwhile, system restaurants in operation increased 26% in China and 8% in the U.K. Further, the company's international franchise-only businesses represent 34% of international system restaurants and had 12% growth in system sales, before currency conversion.
"The underlying strength of our global base business is allowing us to offset significant commodity inflation in the U.S.," the company said in a statement.
For the third quarter, Yum! said it is comfortable with the current consensus estimate for earnings of 60 cents a share, before items. The company earned 52 cents a share in the year-ago third quarter.
The Louisville, Ky.-based company anticipates full-year earnings of at least $2.33 a share, excluding items, ahead of the consensus estimate for $2.31 a share. Including items, full-year earnings are expected to be $2.36 a share.
Yum! also said its first-ever quarterly dividend of 10 cents a share will be paid to shareholders on Aug. 6.