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.

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' ( 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.

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. 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 on Thursday reported quarterly earnings and revenue that included strong sales for KFC's international restaurants and Taco Bell. The company's same-store sales rose 1% in the quarter. Yum Brands on Thursday reported quarterly earnings and revenue that included strong sales for KFC's international restaurants and Taco Bell.

The logo of Taco Bell, a subsidiary of Yum! Brands, Inc. is seen on a store in Manhattan, New York City, U.S., February 7, 2022. Reuters / ANDREW KELLY Yum Brands reported strong fourth-quarter and full-year results,