Yum Turns In Better-than-expected Results On Strong China Sales

Yum Brands Inc. shares rallied in Wednesday's extended session after the fast-food company posted better-than-expected earnings, largely on the back of strong sales at its China division. Yum reported its first-quarter earnings rose to $391 million, or 93 cents a share, from $362 million, or 83 cents a share, a year earlier. On an adjusted basis, the parent company of KFC and Taco Bell would have earned 95 cents a share. Revenue was mostly flat at $2.62 billion. Analysts surveyed by FactSet had projected the Louisville, Ky., company to earn 83 cents on revenue of $2.66 billion. Its China division, which it plans to spin off by the end of the year, reported same-store sales of 6% while global same-store sales increased 2%. Yum raised its core operating profit growth outlook for 2016 to 12% versus 10% previously. Shares of Yum gained 3.7% in after-hours trading.