NEW YORK (TheStreet) -- Yum! Brands (YUM) - Get Report stock is tanking by 16.42% to $69.75 in after-hours trading on Tuesday, after the company reported financial results for the 2015 third quarter after the market close.
Yum! Brands reported earnings of $1 per share for the most recent quarter, up 14% from 87 cents per share for the year ago period.
The company's net revenue increased to $3.43 billion, from $3.35 billion for the 2014 third quarter.
Yum! Brands had been forecast to report earnings of $1.07 a share, on revenue of $3.67 billion.
The company now expects full-year same-store sales in China to be low-single-digit negative and full-year earnings per share growth to be low-single-digit positive, amid China's economic downturn, Yum! said.
"We're pleased same-store sales turned positive and we achieved restaurant margins of nearly 20% in our China business," CEO Greg Creed said in a statement. "However, the pace of recovery in our China division is below our expectations. Outside of China, our Taco Bell and KFC divisions continued to sustain their positive sales momentum while Pizza Hut was relatively flat."
Yum! Brands, based in, Louisville, KY, operates quick service restaurants in five segments: YUM China, YUM India, the KFC Division, Pizza Hut and Taco Bell.
Separately, TheStreet Ratings team rates YUM BRANDS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate YUM BRANDS INC (YUM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: YUM