Yum Brands beats estimates as Taco Bell posts 8% sales growth

Yum Brands on Wednesday reported quarterly earnings and revenue that exceeded analysts’ expectations, supported by another strong performance from its Taco Bell division.

The company posted adjusted earnings per share of $1.50, surpassing estimates of $1.38, according to a survey by LSEG.

Revenue came in at $2.06 billion, slightly ahead of expectations of $2.04 billion.

Yum reported first-quarter net income of $432 million, or $1.55 per share.

This compares with $253 million, or 90 cents per share, in the same period a year earlier.

Excluding charges tied to its strategic review of Pizza Hut and other items, earnings stood at $1.50 per share.

Revenue growth supported by restaurant expansion

Net sales rose 15% to $2.06 billion, driven by higher contributions from company-owned restaurants.

The company had acquired more than 100 Taco Bell locations across the Southeast last year, aiming to accelerate development and improve profitability.

Across the business, global same-store sales increased 3%.

This growth was largely supported by Taco Bell, which remains a key driver within Yum’s portfolio.

Taco Bell outperforms industry expectations

Taco Bell reported same-store sales growth of 8%, exceeding Wall Street estimates of 5.6%.

“Taco Bell delivered an outstanding 8% same-store sales growth, meaningfully ahead of the QSR industry, building off a very strong Q1 same-store sales growth rate in 2025," Yum CEO Chris Turner said in a statement.

He added," KFC delivered impressive unit growth and resilient same-store growth, with many KFC markets growing system sales double-digits. Yum! is incredibly well positioned to sustain sales momentum thanks to strong global consumer appeal for our brands, long-term consumption tailwinds, and our tech and AI capabilities."

The strong performance highlights Taco Bell’s continued momentum and its role as the company’s top-performing brand.

KFC and Pizza Hut show mixed performance

KFC reported same-store sales growth of 2%, falling short of Street Account projections of 2.5%.

While its international operations remain a key growth engine, its US business continues to face pressure.

KFC US system sales declined 2% during the quarter.

To regain traction, KFC is focusing on innovation and affordability, taking cues from Taco Bell’s strategy.

Pizza Hut also delivered mixed results.

Global same-store sales were flat, although international same-store sales rose 2%.

In contrast, US same-store sales fell 4%.

Analysts had expected a global decline of 0.7% for Pizza Hut, according to Street Account.

Strategic review of Pizza Hut remains in focus

Yum has been exploring strategic options for Pizza Hut, which has lagged behind other brands in its portfolio.

Several private equity firms, including Apollo Global Management and Sycamore Partners, are among potential buyers.

The company did not provide an update on the review in its latest earnings release.

However, it included metrics such as system sales, unit count, and core operating profit excluding Pizza Hut.

Overall, Yum’s latest results underline the strength of Taco Bell as a growth engine, while challenges persist for KFC and Pizza Hut in key markets.