NEW YORK (MarketWatch) -- Yum Brands Inc. said Wednesday that strong global expansion helped boost third-quarter profit by 16%, enabling the operator of Pizza Hut, KFC and Taco Bell restaurants to lift its earnings target for the full fiscal year.
Revenue for the three-month period ended Sept. 3 advanced 2.9% to $2.24 billion from $2.18 billion a year earlier, matching analysts' average estimate. U.S. same-store sales, or sales generated at stores open at least a year, increased 4%.
Shares of Yum Brands rallied more than 3% to $49.87 in recent action.
Based on the third-quarter results, Yum Brands raised its full-year earnings forecast to $2.64 a share, up from the company's July estimate of $2.62 a share. Analysts' outlook stands at $2.63 a share.
For the fourth quarter, Yum expects earnings to match analysts' average estimate of 78 cents a share.
The company credited the solid results and higher profit forecast to strong same-store sales growth and to international expansion.
"We continue to aggressively expand outside the United States and expect to exceed our full-year target of over 1,100 new restaurants," said Chairman and Chief Executive David Novak in a news release.
"This includes a record number of new-restaurant openings from our China division where we fully expect to exceed our 2005 target of 375 openings."
