(Reuters) - Yum Brands Inc <YUM.N>, the owner of KFC and Taco Bell, reported a smaller-than-expected rise in quarterly sales at established restaurants worldwide as fewer diners ate at its Pizza Hut restaurants.


The company, which spun off Yum China Holdings Inc <YUMC.N> late last year, said same-store sales rose 2 percent in the second quarter ended June 30, missing the 2.2 percent rise analysts polled by Consensus Metrix had expected.


The Pizza Hut division, which has been off-setting strong growth at KFC and Taco Bell, reported its fourth-straight quarterly same-restaurant sales decline, falling 1 percent in the reported quarter. It, however, beat the 1.5 percent decline expected by analysts, according to research firm Consensus Metrix.


KFC and Taco Bell continued to show strong same-restaurant growth around the world, rising 3 percent and 7 percent, respectively. Both beat analysts' expectations.


Net income from continuing operations fell to $206 million, or 58 cents per share, in the second quarter, from $266 million, or 64 cents per share, a year earlier, hurt in part by higher expenses related to sprucing up its Pizza Hut stores.


Excluding items, the company earned 68 cents per share. Net sales fell 4 percent to $1.45 billion.

Analysts on average had expected earnings of 61 cents per share and revenue of $1.42 billion, according to Thomson Reuters I/B/E/S

Shares of the Louisville, Kentucky-based company were down 0.7 percent in premarket trading.

(Reporting by Siddharth Cavale and Karina Dsouza in Bengaluru; Editing by Shounak Dasgupta)