Yum Brands Inc (YUM. N) released their quarterly profit that surpassed Wall Street's estimate, enhanced by sales growth in China, its biggest market, in spite of labor and food costs rising there.

The increasing costs have reduced margins slightly for the company in China, which owns all KFC, Pizza Hut and Taco Bell chains. Margins for the firm improved in America as well as other markets.

Shares of Yum went up by 2.3 percent to reach forty eight dollars and eighty five cents seen in extended trading. It did surprise Wall Street with China and U. S. sales at established restaurants that went past those posted by key rival McDonald's Corp (MCD. N)

Yum gathers about thirty three percent of its earnings from China, the fastest growing major economy of the world, and same-restaurant sales in that market soared by eight percent in the final quarter, going above analysts' expectations and going up from the previous quarter's six percent rise.

Yum's overall American same-restaurant sales went up by five percent for the latest quarter, improving from one percent gain in the previous quarter and surpassing analysts' expectations.

The domestic business of Yum funds its international expansion and takes a back seat for businesses in China, where the company established a foothold before other Western rivals.

McDonald's posted 4.4 percent same-restaurant sales growth in their final quarter.

Shares of Yum have advanced thirty six and a half percent since Jan. 1, 2010, mainly on the back of its growth in China. It is widely considered as one of the biggest China plays for investors in the American stock market.

Yum owns more than three thousand and seven hundred restaurants of which most are KFC outlets in China and has a big lead over Western rivals there.