Brand Earnings (YUM) Q3 2025

Yum brands On Tuesday, it reported quarterly earnings and revenue growth, helped by strong demand for Taco Bell and improving U.S. sales of KFC.

The restaurant company also announced plans to review Pizza Hut’s strategic options. The beleaguered pizza chain has struggled to win customers in recent years. In its home market, pizza fatigue following pandemic lockdowns has depressed sales, and competitors like Domino’s Pizza have taken share from Pizza Hut.

“We believe that taking a different approach, including but not limited to, selling the business, will allow Pizza Hut to achieve its full potential,” CEO Chris Turner said on a company conference call.

Yum shares rose 5% in early trading.

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

• EPS: $1.58 adjusted. It may not compare to the expected $1.49.
• profit: $1.98 billion compared to the expected $1.97 billion

Yum reported third-quarter net income of $397 million, or $1.41 per share, compared with $382 million, or $1.35 per share, a year earlier.

Excluding the cost of Pizza Hut’s strategic review and other items, the company had profit of $1.58 per share.

Net sales It rose 8% to $1.98 billion.

Yum’s digital sales, which include mobile ordering, delivery and kiosks, have reached $10 billion systemwide and represent about 60% of orders.

The company’s same-store sales rose 3%, boosted by Taco Bell and KFC.

Taco Bell’s store sales rose 7% in the quarter, beating analysts’ estimates of 5.2% growth, according to StreetAccount. While other fast food chains have seen their sales decline, the Mexican-inspired chain has bucked the trend. The perception of value, even among low-income diners, and innovation on the buzzy menu have helped boost Taco Bell’s sales.

“We don’t see consumer decline in Taco Bell’s business,” Turner said. “We believe the U.S. consumer is cautious, but incredibly resilient.”

Yum announced it will purchase 128 Taco Bell locations in the southeastern United States. The company owns the franchise rights for about 98% of its restaurants

KFC reported same-store sales growth of 3%, beating StreetAccount estimates of 2.4%. In China, the brand’s largest market, system sales rose 6%.

In the United States, where it lost market share to new players such as Raising Cane’s, KFC’s same-store sales rose 2%.

Turner attributed KFC’s strength to the new leadership of Katherine Tan Gillespie, who took over as president of the chain in the United States in April. Under Tan Gillespie, KFC’s US business changed its marketing methods and introduced spicy wings.

“It’s early days of transformation, but we’re happy with the green shoots,” Turner said.

Only Pizza Hut saw a decline in same-store sales. The struggling pizza chain reported that same-store sales fell 1% in the quarter, due to a 7% drop in sales at U.S. restaurants open at least a year. Analysts surveyed by StreetAccount were expecting a same-store sales decline of just 0.3%.

“We remain focused on driving business performance,” Ranjith Roy, Yum’s chief financial officer, said on the company’s conference call. “However, as we prepare the company for a potential transaction, our fourth-quarter results may see some impact from actions involving isolated franchisee positions.”

For example, DC London Pie Limited, operator of Pizza Hut in the UK, went bust in October, resulting in the closure of at least 68 stores.