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Pizza Hut has struggled in recent quarters amid competition,
most notably from Domino's <DPZ.N>, which has maintained strong
growth in the United States thanks to its dominance in digital
ordering, customization and promotions.
But Pizza Hut's latest results showed that efforts to turn
around the franchise through more advertising and promotions
were beginning to pay off.
Measures included making its popular $7.99 large, two-topping
pizzas available for online ordering and improving its mobile
app.
Sales at the chain's restaurants open at least a year rose 1
percent, compared with the 0.5 percent decline expected by
analysts polled by research firm Consensus Metrix.
Pizza Hut's same-restaurant sales rose 4 percent in developed
markets, which include Continental Europe, Japan and the United
Kingdom. Sales in the United States and emerging markets
remained flat.
Yum Brands, which also owns the KFC and the Taco Bell chains,
reported global same-restaurant sales growth of 3 percent in the
quarter, better than the 1.7 percent increase expected by
analysts.
Net income from continuing operations rose to $418 million, or
$1.18 per share, in the third quarter ended Sept. 30, from $218
million, or 55 cents per share, last year.
Excluding items, the company earned 68 cents per share.
Revenue was $1.44 billion, compared to $3.31 billion a year
earlier. The company spun off its China business in November
last year.
Analysts on average had expected earnings of 67 cents per share
on revenue of $1.39 billion, according to Thomson Reuters
I/B/E/S.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Bernard Orr)
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