The strong U.S. dollar weighed on the results of the company.
Same-store sales at its restaurants rose as revenue came in above expectations. More premium menu items in the U.S. are proving popular, and consumers haven't been changing their behavior, according to executives from the fast food chain.
Some restaurant companies have reported a decrease in spending from lower income customers. In the United Kingdom, demand for Pizza Hut is lagging due to higher energy costs, according to a report by the company.
The company's shares rose before the market opened.
Here is what the company reported compared with what Wall Street was expecting.
Net sales increased 2% Same-store sales for the company increased 5% in the quarter, beating StreetAccount estimates. The majority of the transactions came from digital channels.
Wall Street was estimating 2% same-store sales growth. Same-store sales rose 9% even though they were not included in China.
In the U.S., the fried chicken chain brought back its mac and cheese bowls, which helped drive domestic same-store sales growth.
The company announced in October that it had reached a deal to sell its restaurants in Russia.
The company's same-store sales rose less than expected in the quarter. Same-store sales increased in the U.S. The Mexican-inspired chain is one of the strongest performers.
In the fourth quarter, we are even more excited about the resurgence of the Mexican pizza in the U.S.
Wall Street had projected that Pizza Hut's same-store sales would decline. The pizza chain has been in decline for a long time. Demand for pizza delivery helped boost sales, but has waned as people go out more again.
Net income for the quarter was $331 million, or $1.14 per share, down from $528 million, or $1.75 per share, a year ago. The company's earnings per share were affected by foreign currency rates.
The restaurant company earned $1.09 per share without Russian profits.
There will be an investor day in New York City.
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