shares rose as much as 7 percent in after-hours trading on Tuesday after the company beat earnings estimates for the third quarter.
The company, which manages brands like KFC, Pizza Hut and Taco Bell in China, reported earnings of 51 cents per share compared to analysts' estimate of 45 cents per share. The company missed revenue expectations, however, reporting $2.21 billion for the third quarter, while Wall Street expected $2.23 billion.
Overall same-store sales had a smaller-than-expected decline, falling one percent while analysts estimated a 1.5 percent drop. Same-store sales at KFC beat estimates, while Pizza Hut's missed estimates.
The company also raised its dividend 20 percent, from 10 cents to 12 cents per share, and increased its stock buyback plan by $850 million to $1.4 billion.
In August, the company rejected a $17.6 billion buyout offer from Hillhouse Capital.