Nostradamus. Babe Ruth. The Taco Bell Chihuahua. They're all colorful visionaries who made a great call. Wait a minute? The Chihuahua? That's right. "Yo Quiero Taco Bell" proved to be as accurate a prognostication as any. Now, the Mexican fast-food chain has helped fuel another strong showing for parent company Yum! Brands (NYSE:YUM).
With KFC and Pizza Hut, Taco Bell completes the trio of eatery giants that once weighed on Pepsi (NYSE:PEP). Apparently, independence has done the concepts good as the stock has doubled since being spun off six years ago. That may not sound like much, but it's a better showing than many stocks, including Pepsi itself.
Last night, Yum topped Wall Street's quarterly targets and is now guiding investors to expect earnings of $2.03 a share this fiscal year. The fact that KFC and Taco Bell performed well is par for the drive-thru course. A meatier morsel lies in the news that struggling Pizza Hut produced its best quarter in more than two years.
But, in the end, domestic sales simply produced flat growth stateside. For Yum! -- which managed to bag $6.2 billion in quarterly sales -- the real fiscal treasure came from the growing international business.
While investors already realize the importance of global expansion for such companies as McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX), Yum is now banking on a third of its operating profits coming from international operations. Apparently "Yo Quiero Taco Bell" is voiced in more languages than just Spanish.
What next? Kentucky Fried Chicken's acronym standing for Keep Financials Coming? Maybe not, but with the world lending a chalupa-gripping hand, the tasty numbers keep coming.
Have you tried the new and improved Popcorn Chicken at KFC? What about that spicy chicken burrito at Taco Bell? Can Pizza Hut keep pace with its nimbler pizza rivals? All this and more -- in the Yum Brands! discussion board. Only on Fool.com.
