Taco Bell parent Yum Brands tops profit estimates for second quarter as revenue falls short

Yum Brands Inc.’s stock
YUM,
-1.42%
edged up 0.8% premarket Wednesday, after the parent of Taco Bell, Pizza Hut and KFC fast-food restaurants beat profit estimates for the second quarter but posted weaker-than-expected revenue. The company had net income of $418 million, or $1.46 a share, for the quarter, up from $224 million, or 77 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.41, ahead of the $1.24 FactSet consensus. But revenue rose 3% to $1.687 billion from $1.636 billion a year ago, to miss the $1.745 billion FactSet consensus. Chief Executive David Gibbs said the company believes it can deliver full-year results that are well above its long-term growth algorithm for system sales and core operating profit growth. The stock has gained 6% in the year to date, while the S&P 500
SPX,
-1.31%
has gained 19%.