Brand Earnings (YUM) Q1 2026

Yum brands On Wednesday, it reported quarterly earnings and revenue that beat analysts’ expectations, helped by another strong quarter for Taco Bell.

Here’s what the company reported compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: $1.50 was revised from $1.38 expected
• profit: $2.06 billion versus $2.04 billion expected

Yum reported first-quarter net income of $432 million, or $1.55 per share, up from $253 million, or 90 cents per share, a year earlier.

Excluding fees related to Pizza Hut’s strategic review and other items, the company had earnings of $1.50 per share.

Net sales By 15% to $2.06 billion, supported by higher revenues from company-owned restaurants. Last year, Yum purchased more than 100 Taco Bell locations throughout the Southeast with the goal of accelerating development and profitability.

Across Yum, global same-store sales rose 3%, driven by growth at Taco Bell, the jewel of the company’s portfolio.

Taco Bell’s store sales rose 8%, beating Wall Street estimates of 5.6%, according to a StreetAccount survey.

“Taco Bell achieved outstanding same-store sales growth of 8%, significantly exceeding same-store sales [quick-service restaurant] “The industry will build a very strong same-store sales growth rate in the first quarter of 2025,” Yum CEO Chris Turner said in a statement.

Yum also plans to expand its use of AI-driven A/B testing in Taco Bell’s drive-thru lanes, after a successful pilot in the first quarter. This technology allows Taco Bell to change the design, visuals and content displayed for cars in drive-thru lanes, allowing the chain to quickly identify which messages resonate most with customers.

“If you think about our philosophy around AI, first and foremost, we want to use AI to drive growth,” Turner said on the company’s earnings conference call.

KFC reported same-store sales growth of 2%, less than the 2.5% increase StreetAccount expected. While the international business of the fried chicken chain is considered one of Yum’s “growth engines”, its US business has suffered in recent years, declining in the face of increasing competition and consumer value expectations.

KFC’s U.S. system sales declined 2% during the first quarter. Yum no longer shares same-store sales for KFC’s U.S. business, indicating that the segment is now considered unimportant to the company’s broader results. Its home market is now KFC’s third largest region in terms of system sales, trailing behind China and Europe. However, Turner said KFC US remains “strategic” for Yum.

To win back customers, KFC is taking some cues from Taco Bell’s successful playbook with a penchant for innovation and affordability. It’s also expanding a sub-chain focused on chicken tenders called Saucy, which provides KFC’s broader business with ideas on menu items that resonate with diners.

Likewise, Pizza Hut saw stronger results outside its home market. The struggling pizza chain reported flat same-store sales globally, although its international business saw same-store sales rise 2% in the quarter. Same-store sales in the United States shrank by 4%.

Analysts had expected global same-store sales to decline By 0.7% for Pizza Hut, according to StreetAccount.

In November, Yum said it would explore strategic options for the chain, which has long been a laggard in its portfolio. Reuters reported earlier this month that several private equity firms, including Apollo Global Management and Sycamore Partners, are among the potential buyers vying for Pizza Hut.

While Yum did not provide an update to its strategic review on Wednesday, its earnings release included a bullet point detailing the company’s system sales, number of units and underlying operating earnings excluding Pizza Hut.