NEW YORK (AP) — The company that runs the KFC, Taco Bell and Pizza Hut chains easily beat first-quarter expectations, but that’s being overshadowed by weak sales at established restaurants.
Shares of Yum Brand Inc. slipped before the opening bell Wednesday.
Net income soared 55 percent to $433 million, or $1.27 per share. Removing a number of nonrecurring gains, per-share profit was 90 cents, far outpacing Wall Street projections for 76 cents, according to a survey by FactSet.
Revenue for the Louisville, Kentucky, company totaled $1.37 billion, also beating expectations.
Worldwide sales at restaurants open at least a year climbed 1 percent in the quarter. While that’s an improvement from last year’s decline of 3 percent, it’s short of the 2 percent gain industry analysts projected.