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Taco Bell Parent Yum Stock Up on Q3 Earnings Beat

Yum Brands cites 'sustained momentum in digital sales' in its third-quarter results.

Yum Brands  (YUM) - Get Yum! Brands, Inc. (YUM) Report stock climbed Thursday after third-quarter-earnings at the parent of Taco Bell, KFC and Pizza Hut nearly doubled and beat Wall Street's expectations.

Shares of the Louisville, Ky., company at last check were up 0.4% at $126.25.

Yum! reported net income of $528 million, or $1.75 a share, for the quarter, compared with $283 million, or 92 cents a share, in the year-earlier quarter. Adjusted per-share earnings came to $1.22, beating the FactSet consensus of $1.08 a share.

Revenue totaled $1.61 billion, up 11% from a year earlier and coming in ahead of FactSet's call for $1.59 billion. Same-store sales increased 5%.

KFC’s same-store sales climbed 6% after falling 4% a year earlier. 

KFC International saw same-store sales decline 1% on a two-year basis, which includes the impact of about 1% of stores being temporarily closed as of the end of the third quarter.

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Same-store sales at KFC U.S. grew 13% on a two-year basis, the company said.

Taco Bell’s same-store sales rose 5% in the quarter.

Pizza Hut reported same-store sales growth of 4%. Pizza Hut International's same-store sales declined 4% on a two-year basis.

Yum Chief Executive David Gibbs cited "record-breaking unit development and sustained momentum in digital sales" as factors in the quarterly results.

Yum is confident of its growth prospects as it continues "to navigate the short-term uncertainties of the Covid recovery," he said.

On Wednesday, McDonalds  (MCD) - Get McDonald's Corporation (MCD) Report posted stronger-than-expected third-quarter earnings, as the Chicago burger giant's sales were boosted by higher U.S. menu prices and larger order sizes.