Yum Brands posted a smaller-than-expected drop in comparable sales and beat profit estimates today.
The fast food chain was helped by strong online sales at its Taco Bell chain as Covid-19 pandemic fears kept customers at home.
Fast-food restaurants, including rivals McDonald's and Chipotle Mexican Grill, have benefited from earlier digital investments, especially when they were closed at the height of the health crisis.
Yum's chief executive David Gibbs said online sales in the third quarter surged by over $1 billion to $4 billion from a year earlier, setting a new quarterly record.
"Drive-thru demand skyrocketed this quarter as Taco Bell served over 30 million more cars," he added.
Taco Bell, which trounced third-quarter comparable sales estimates, remains the crown jewel in Yum's portfolio, Cowen analyst Andrew Charles said in a note.
CEO Gibbs said while the upward online sale trend continues in the current quarter, pandemic-related uncertainty persists. He said there could be more challenges from fresh lockdowns.
Yum's net income rose about 11% to $283m.
It was helped by $8m in pre-tax income due to change in fair value of its investment in Grubhu, which would be acquired by European online food-ordering company Just Eat Takeaway.com early next year, once approved by regulators.
Yum sold its stake in food delivery firm Grubhub for $206m, more than two years after making a $200m investment to improve its delivery services.
Comparable sales fell 2% for the KFC owner in the quarter ended September 30, compared with the estimate of a 3.74% slide, according to IBES data from Refinitiv.
Excluding items, Yum earned $1.01 per share, 21 cents more than expectations.
