Yum Brands (YUM), the parent company of KFC, Taco Bell and Pizza Hut, handily beat first-quarter earnings expectations, driven by growth in China.
Yum reported earning $391 million for the quarter ended March 19, up 8% from $362 million a year ago. With earnings per share coming in at 95 cents, the results beat analyst expectations for earnings per share of 83 cents, according to S&P Global Market Intelligence.
The report sent Yum shares rising 4.1% in after-hours trading to $85.95, up $3.42.
Revenue came in at $2.6 billion, basically unchanged from the same quarter a year ago and just slightly under analyst expectations for revenue of $2.66 billion.
Yum CEO Greg Creed attributed the performance to a number of factors, including a 42% gain in Yum's China business. KFC China, in particular, scored big on a Chinese New Year promotion. Creed called it a "transformational year" with plans to separate the Chinese business, "establishing two powerful, independent, focused growth companies dedicated to building on our brand strengths and rewarding our shareholders."
Yum, looking to aggressively grow its business in China, opened 743 new restaurants there last year.
Yum also posted higher same-store sales in each of its fast-food chains. KFC's same-store sales, a measure that takes out growth to show how the chains are performing at existing eateries, increased 1%, while Pizza Hut was up 3% and Taco Bell grew 1%.
Taco Bell has gained traction with its breakfast menu in recent years. The brand, which has been battling for breakfast eaters with McDonald's, launched a $1 breakfast menu last month.
