YUM BRANDS (YUM) Company Report

Pizza Hut’s U.S. same-store sales fell 6% last quarter, marking eight consecutive quarters of declines.
Pizza Hut accounts for about 11% of Yum’s operating profits, versus 38% for Taco Bell in the U.S..
Yum Brands has launched a strategic review of Pizza Hut, including the possibility of spinning off the brand to realize its full value.
Internationally, Pizza Hut’s same-store sales rose 2% last quarter outside the U.S., but overall international sales fell over 2% in 2024.

Nov 4, 2025, 1:24 PM

Bloomberg

Yum! Brands announces Q3 2025 results and strategic review

YUM

Earnings

CEO Change

M&A

Leadership changes: Chris Turner appointed CEO, succeeding David Gibbs, with Ranjith Roy promoted to CFO and other key roles expanded to strengthen consumer, technology, and scale capabilities.
Pizza Hut strategic review: Initiated exploration of strategic options, including potential sale, to maximize Pizza Hut’s value and position the brand for greater success.
Taco Bell acquisition: Agreed to purchase 128 U.S. Taco Bell restaurants for approximately $670 million, expected to add $70 million incremental EBITDA in 2026, financed largely by cash and a $1.5 billion note issuance.
Q3 2025 results: System sales +5%, core operating profit +7%; KFC operating profit +14% (6% unit growth, 3% same-store sales) and Taco Bell same-store sales +7% with digital sales up 28% year-over-year.
Share repurchase & Q4 outlook: Repurchased 244 K shares for $36 million in Q3 (YTD $372 million); Q4 restaurant margins targeted at 24%, full-year interest expense $505–515 million, and a $15 million FX tailwind, with Pizza Hut review costs treated as special items.

Nov 4, 2025, 1:15 PM

Transcript

Yum! Brands announces Q3 2025 results

YUM

Earnings

M&A

Debt Issuance

Yum commenced a strategic review of the Pizza Hut brand, exploring options including a potential sale to maximize value for Yum and franchise partners .
Q3 system sales grew 5% and core operating profit increased 7%, driven by 5% unit growth and 3% same-store sales growth .
Restaurant-level margins improved at Taco Bell U.S. to 23.9% (+50 bps) and at KFC to 13.7% (+120 bps) year-over-year .
Digital sales reached $10 billion, comprising 60% of total sales mix, and Yum opened a Q3 record 1,131 new units globally (including 760 KFC) .
Financial actions included a $1.5 billion issuance of Taco Bell senior secured notes, $36 million of share repurchases in Q3 (bringing YTD to $372 million), and a $670 million acquisition of 128 Taco Bell restaurants, expected to add $70 million of incremental EBITDA in 2026 .

Nov 4, 2025, 1:15 PM

Transcript

Yum! Brands reports Q3 2025 results and strategic update

YUM

Earnings

CEO Change

CFO Change

Reported Q3 system sales up 5%, unit growth 3%, same-store sales 3%; digital sales reached $10 billion with a ~60% mix; core EPS was $1.58, a 15% increase year-over-year.
Opened a Q3 record 1,131 gross new units globally: 760 KFC, 74 Taco Bell, and 289 Pizza Hut locations.
Announced leadership changes: David Gibbs retired and will advise through 2026; Chris Turner became CEO and Ranjith Roy was promoted to CFO, with Sean Tresvant and Jim Dausch assuming expanded global roles.
Launched a formal strategic review of Pizza Hut to evaluate options—including potential separation or divestiture—to enhance the brand’s growth and value.

Nov 4, 2025, 1:15 PM

Transcript

Yum! Brands reports third-quarter 2025 results

YUM

Earnings

Management Change

M&A

Yum! Brands delivered GAAP EPS of $1.41 and EPS excluding special items of $1.58, a 15% year-over-year increase, with worldwide system sales up 5% excluding FX, led by Taco Bell at +9% and KFC at +6%.
Chris Turner assumed the role of CEO, Ranjith Roy was promoted to CFO, Sean Tresvant named Taco Bell CEO and Chief Consumer Officer, and Jim Dausch appointed Chief Digital & Technology Officer and President of Byte by Yum!.
Initiated a formal review of strategic options for the Pizza Hut brand to unlock long-term value for Yum!, franchisees, and stakeholders.
Expects to complete the acquisition of 128 Taco Bell restaurants in the U.S. Southeast in Q4 2025 to strengthen its equity-owned base and drive EBITDA growth.

Nov 4, 2025, 12:01 PM

8-K

Yum! Brands reports Q3 2025 results

YUM

Earnings

CFO Change

M&A

GAAP EPS of $1.41 and EPS excluding Special Items of $1.58 (15% YoY growth) in Q3 2025.
Worldwide system sales up 5% ex F/X, unit count +3% (1,131 new units), and record $10 billion digital system sales with ~60% mix.
Initiated a strategic review of Pizza Hut and expects to acquire 128 Taco Bell restaurants in Q4 to bolster equity ownership.
Effective October 1, appointed Ranjith Roy as CFO, Sean Tresvant as Taco Bell CEO & Chief Consumer Officer, and Jim Dausch as Chief Digital & Technology Officer.
Taco Bell subsidiary issued $1.5 billion of securitization notes in Q3 to refinance debt and fund corporate needs.

Nov 4, 2025, 12:00 PM

Press Release

Yum! Brands initiates strategic review of Pizza Hut

YUM

M&A

Yum! Brands has launched a formal review of strategic options for Pizza Hut to maximize shareholder value and help the brand reach its full potential.
The review will explore a range of strategic outcomes while Pizza Hut maintains focus on near-term business imperatives.
No definitive timetable or assurance of a transaction has been set; further disclosures will occur only if deemed appropriate.
The company has retained Goldman Sachs and Barclays as financial advisers for this strategic review.

Nov 4, 2025, 11:50 AM

Press Release

Yum! Brands plans menu revamp to regain U.S. fried chicken market share

YUM

CEO Change

Product Launch

KFC has seen six consecutive quarters of declining U.S. same-store sales amid a shift from bone-in chicken to sandwiches and boneless tenders, losing ground to Chick-fil-A, Popeyes and Raising Cane’s.
Since 2023, Yum! Brands has closed about 300 KFC locations in the U.S. while opening 412 new Taco Bell outlets, underscoring a strategic tilt toward Taco Bell over KFC domestically.
KFC has not received major U.S. capital investment in over a decade, with the last significant funding of $185 million for advertising and equipment roughly 10 years ago.
New CEO Chris Turner is spearheading a leadership overhaul and menu revamp—backed by marketing campaigns featuring an “angry Colonel Sanders”—to restore KFC’s relevance.

Oct 28, 2025, 10:17 AM

Bloomberg

YUM Brands subsidiary issues $1.5 billion senior secured notes

YUM

Debt Issuance

On September 24, 2025, Taco Bell Funding, LLC, a wholly owned subsidiary of Taco Bell Corp. (and indirect subsidiary of YUM! Brands), completed a refinancing and issued $1.0 billion of Series 2025-1 Class A-2-I 4.821% notes and $500 million of Series 2025-1 Class A-2-II 5.049% notes in a private offering under a Second Amended and Restated Base Indenture.
The notes are secured by substantially all assets of the issuer and its special-purpose subsidiaries, including U.S. Taco Bell franchise and license agreements, related royalties, intellectual property, transaction accounts, and equity interests in the securitization entities.
Interest and principal are payable quarterly from continuing franchise fees, with anticipated repayment dates in August 2030 for Class A-2-I and August 2032 for Class A-2-II, and a legal final maturity in August 2055; amortization of 1% per annum may be required if leverage exceeds 5.50x.
The transaction amended and restated leverage covenant thresholds for issuance of additional notes, setting Senior Leverage Ratio limits of 6.50:1 (increasing to 7.00:1 post-springing amendments) and Holdco Leverage Ratio limits of 7.00:1 (increasing to 7.50:1).

Sep 30, 2025, 8:38 PM

8-K

Yum Brands appoints Chris Turner to Board of Directors

YUM

Board Change

CEO Change

Management Change

Chris Turner, Yum! Brands’ CFO since 2019 and Chief Franchise Officer since 2024, has been appointed to the Board effective October 1, 2025, coinciding with his start as CEO of the company.
Turner will succeed David Gibbs, who will retire as CEO on October 1, 2025 after 36 years with Yum! Brands and step down from the Board but remain as an executive advisor through 2026.
The Board expects Turner’s dual role to deepen collaboration between leadership and Directors and support Yum! Brands’ next stage of growth.

Aug 28, 2025, 11:35 AM

8-K

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