Yum Brands shares rallied on Tuesday after the restaurant operator topped earnings expectations as comparable sales in China declined less than forecast.
Yum, which operates KFC, Pizza Hut and Taco Bell restaurants, reported first-quarter earnings of 80 cents per share on revenue of USD2.62 billion.
Same-store sales in China, a key division for the company, fell 12 percent during the quarter after allegations that a former supplier used expired meat. The company’s China unit has been especially hard hit this year because of a supplier scare last summer. Analysts expect same-store sales in the country to shrink 14.4 percent.