YUM BRANDS (YUM) Company Report

Yum Brands posted Q4 revenue of $2.51 billion and net income of $535 million ($1.91 per share), while adjusted EPS of $1.73 missed estimates.
Worldwide same-store sales rose ~3%, led by Taco Bell US ~7% and KFC international growth; Pizza Hut US sales fell for the ninth consecutive quarter, prompting a strategic review.
Taco Bell US now represents 36% of operating profits, driven by value pricing, menu innovation and popular combo meals.
On a system-sales basis (ex-FX), global sales grew ~5%, with Taco Bell up 8% and KFC up 6%, slightly outpacing the same-store metric.

2 days ago

WSJ

Yum! Brands reports Q4 2025 results and dividend increase

YUM

Earnings

Dividends

Yum! Brands delivered Q4 GAAP EPS of $1.91, up 28% YoY, and EPS excluding Special Items of $1.73, up 8%.
Full-year GAAP EPS was $5.55, up 6%, with EPS excluding Special Items at $6.05, up 10%.
Worldwide system sales grew 5% ex-FX (ex-53rd week), led by Taco Bell (+8%) and KFC (+6%), and the company opened 1,814 net new units, a 3% increase.
The board approved a 6% increase in the quarterly dividend to $0.75 per share, payable March 6, 2026.

3 days ago

8-K

Yum! Brands reports Q4 2025 results

YUM

Earnings

Guidance Update

Yum! grew Q4 system sales 5% (3% unit growth, 3% same-store sales) and full-year system sales 5%, with digital sales of $11 billion up 25% and a Q4 company restaurant margin of 16%.
Taco Bell U.S. delivered 25.7% restaurant-level margins (up 50 bps YoY) on 4% same-store sales growth; full-year margins were 24.4% despite higher beef costs.
KFC reported 12.7% Q4 restaurant-level margins (up 60 bps YoY) driven by U.K. (+150 bps) and U.S. (+350 bps) improvements; full-year system sales rose 6%.
The system opened 1,800+ new units in Q4 and 4,550+ in 2025, led by KFC’s 1,100+ Q4 and nearly 3,000 annual openings—a record pace across 105 markets.
Pizza Hut saw a 1% same-store sales decline in Q4 and FY 2025, opened 440+ Q4 units (1,200+ in 2025), and is conducting a strategic review with ~250 U.S. closures expected in H1 2026.

3 days ago

Transcript

Yum! Brands reports Q4 and FY 2025 results

YUM

Earnings

Guidance Update

Share Buyback

Q4 system sales grew 5%, driven by 3% unit growth and 3% same-store sales; digital sales topped $11 billion (+25% YoY) with digital mix near 60%.
Full-year system sales +5%, led by Taco Bell +8% and KFC +6%; ex-special EPS $6.05 (+10% YoY) and core operating profit +7% (10% ex-Pizza Hut).
Record unit growth: opened >1,800 units in Q4 and >4,550 in FY 2025; KFC opened >1,100 units in Q4 (~3,000 for the year); net leverage ~4×.
2026 outlook (ex-Pizza Hut): >5% net new unit growth, Taco Bell US restaurant-level margins of 24–25%, ex-special G&A up mid-single digits, interest expense $500–520 million, tax rate 22–24%.
Pizza Hut strategic review: Hut Forward program will close ~250 US stores in H1 2026; Q1 core operating profit expected down ~15% due to one-time marketing support and integration costs.

3 days ago

Transcript

Yum! Brands reports Q4 2025 results and raises dividend

YUM

Earnings

Dividends

Yum! delivered strong Q4 results: GAAP EPS of $1.91 (+28%) and EPS ex-special items of $1.73 (+8%); GAAP operating profit grew 12% and core operating profit grew 11% year-over-year.
Worldwide system sales excluding FX and the 53rd week grew 5% in Q4, led by Taco Bell at 8% and KFC at 6% same-store sales growth.
KFC opened over 1,100 new restaurants in Q4 (nearly 3,000 for full-year 2025), and Taco Bell achieved 7% same-store sales growth in both Q4 and the full year.
The board approved a 6% dividend increase to $0.75 per share, payable March 6, 2026.

3 days ago

Press Release

Yum! Brands announces Q4 2025 results

YUM

Earnings

Q4 system sales grew 5% driven by 3% unit growth and 3% same-store sales, with digital sales up 25% to $11 billion and digital mix near 60%.
Company restaurant margin was 16% in Q4; Taco Bell U.S. restaurant-level margin expanded 50 bps to 25.7%.
Q4 core operating profit increased 11%; Q4 ex-special EPS was $1.73, and FY2025 ex-special EPS rose 10% to $6.05.
New unit development reached 1,800+ in Q4 and 4,550+ for FY2025, with a record 1,100+ KFC openings in the quarter.

3 days ago

Transcript

Yum Brands approves merger of Sapphire Foods and Devyani International

YUM

M&A

The boards approved a merger under which Devyani will issue 177 equity shares for every 100 Sapphire shares, consolidating Yum! Brands’ KFC and Pizza Hut operations in India.
The combined company will operate about 3,002 stores across multiple countries and formats.
Management expects roughly 2.5% EBITDA synergies realizable within two years of closing.
The merger is to take legal effect from April 1, 2026, subject to customary regulatory and shareholder approvals over 12–15 months.

Jan 1, 2026, 3:45 PM

CNBC

Yum Brands plans strategic review of Pizza Hut

YUM

Demand Weakening

M&A

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 .