Yum Brands on Wednesday reported second-quarter earnings that beat analyst expectations, but its quarterly revenue came up shy.
The company reported adjusted earnings of 75 cents per share on $3.01 billion in revenue.
Analysts expected the company to report earnings of about 74 cents a share on $3.09 billion in revenue, according to a consensus estimate from Thomson Reuters.
Shares in the company rose about 4.5 percent in after-hours trading.
Yum reported flat same-store sales growth system-wide, with KFC up 2 percent for the quarter. Analysts expected KFC to report same-store sales growth of 2.3 percent, according to StreetAccount.
The company's China division had flat same-store sales, nearly on par with analyst forecasts.
"Given our strong first-half results and current trends in China, I'm pleased to raise our full-year core operating profit growth forecast to at least 14 percent from 12 percent previously," Greg Creed, CEO of Yum Brands, said in a statement.
China is a substantial part of its business, even as it plans to spin it off, as it is the largest division in terms of revenue, garnering $1.59 billion in the second quarter. Yum reaps more operating profit from China than any other division.
China KFC restaurants, the majority of the 7,246 stores in the division, had a 3 percent rise in same-store sales in the second quarter, while the smaller and more upscale Pizza Hut Casual Dining chain posted a drop of 11 percent. Analysts had expected a 3 percent gain at KFC China and a 7.8 percent drop at Pizza Hut China.
Still, Creed acknowledged "challenging industry conditions in the U.S.," which contributed to soft sales results for the company.