Yum Brands on Thursday posted fourth-quarter profit that beat analyst estimates, helped by higher demand for fried chicken at its KFC restaurants.
The company said net income rose to $436 million, or $1.26 per share, in the quarter ended Dec. 31, up from $303 million, or 83 cents per share, a year earlier.
Excluding items, the company earned 96 cents per share, topping analysts' average estimate of 80 cents.
Total revenue fell 16.4 percent to $1.58 billion, lower than the analysts' estimate of $1.59 billion.
Yum also said it will buy a 3 percent stake in online food-ordering company Grubhub. The $200 million investment in Grubhub is expected to bolster sales of pickup and delivery at KFCs and Taco Bells. As part of this partnership, a Yum executive will join GrubHub's board.
Grubhub's stock surged on the announcement. Yum's stock was down about 1 percent.
Here's what Yum reported compared with projections by a Thomson Reuters survey of analysts:
- Adjusted EPS: 96 cents ex. items vs. 80 cents.
- Revenue: $1.58 billion vs. $1.59 million.
- Overall same-store sales: Up 2 percent vs. 2.4 percent growth.
Overall same-store sales at all of Yum Brands' restaurants, which include KFC, Taco Bell and Pizza Hut, rose 2 percent, just shy of analyst expectations of 2.4 percent, according to StreetAccount.