Shares of Yum! popped as much as 3% in post market trade after the company reported earnings that beat expectations.
The Louisville, Ky.-based restaurant chain said it earned 59 cents a share excluding one-time items in its first-quarter, compared with 48 cents a share this time last year.
Sales for the most recent quarter reached $2.35 billion, up from $2.22 billion in the same period last year.
Analysts who follow the company projected Yum earning 53 cents a share on sales of $2.26 billion.
Yum's worldwide operating profit grew 13 percent prior to foreign currency translation, including a 37 percent surge in China and 2 percent international growth. However, the results were offset by a 9 percent decline in the U.S.
"We are particularly pleased with our business in China, which reported robust profit growth of 37 percent—this was driven by new unit growth of 14 percent and same-store-sales growth of 4 percent," David Novak, CEO of Yum, said in a prepared statement.
What’s the trade?
I have no reason to think this stock moves lower, says Guy Adami. I’m a buyer of dips. And elsewhere in the space I like Jack-In-The Box.
I’m going to look at McDonald’s again, says Pete Najarian.