Yum Brands on Thursday reported quarterly earnings and revenue that topped Wall Street estimates. Results were fueled by strong sales for KFC's international restaurants and Taco Bell. Net sales climbed 16% to $2.

Yum Brands surpassed Wall Street estimates for fourth-quarter comparable sales on Thursday as value offerings from Taco Bell attracted budget-conscious U.S. consumers to the popular Tex-Mex chain, sending its shares up about 7%.

Yum! Brands, Inc. (NYSE:YUM) shares are trading higher on Thursday. The company reported fourth-quarter adjusted earnings per share of $1.61, beating the street view of $1.60. Quarterly sales of $2.362 billion outpaced the analyst consensus estimate of $2.

Yum! Brands Inc. shares had their biggest gain in almost five years after sales surpassed expectations, buoyed by growth at the Taco Bell fast-food chain.

Yum Brands reported strong fourth-quarter and full-year results, fueled by Taco Bell's value-driven menu. The fast food giant made $885 million in company sales in Q4, up from $647 million in 2023. Yum Brand made over $9 billion in digital system sales last year, the company's quarterly earnings report.

Yum! Brands' ( NYSE: YUM) core operating profit rose 17% across the company, led by the Taco Bell division. The company's restaurant margin rate of 17.9% was ahead of the consensus estimate of 16.2%. Adjusted EPS was reported at $1.61 vs. $1.60 consensus and $1.26 a year ago.

Its shares rose about 3% in premarket trading. Fast-food chains from McDonald's to Burger King are leaning on their value meals to revive demand, after high prices of essentials and steep borrowing costs forced customers to dine out less.