Yum Brands on Thursday reported third-quarter earnings and revenue that beat analysts' expectations, helped by improved performance at its Pizza Hut division.
The pizza chain has been a major drag on the company's earnings, prompting some to suggest that executives divest the brand. However, the company's strides in the third quarter to bolster Pizza Hut sales seem to be paying off.
Shares jumped more than 7 percent on the news.
Here's what Yum Brands reported compared with Wall Street's expectations:
- EPS: 68 cents ex-items vs. 67 cents expected by analysts surveyed by Thomson Reuters.
- Revenue: $1.44 billion vs. $1.39 billion expected in the Thomson Reuters survey.
- Global same-store sales: 3 percent vs. 1.9 percent expected by StreetAccount.
"Don't expect any heroics, but we do believe we can, by getting the foundations in place and doing the right things, continue to progress our Pizza Hut U.S. performance," CEO Greg Creed said during an earnings conference call Thursday. "So I just feel good about the performance we are making, the steady progress we are making. We are making the brands more distinctive, more relevant and easier. And I think all of that is going to help us get to the long-term goal."