Yum Brands Q1 2026 earnings beat estimates on Taco Bell strength

Yum Brands reported first-quarter adjusted net per stock of $1.50, a 15% summation from a twelvemonth earlier. Analysts had projected $1.38 per share, according to CNBC.

Total revenues roseate 15% to $2.06 billion. GAAP nett income climbed to $432 million, oregon $1.55 per share, from $253 million, oregon 90 cents per share, successful the aforesaid play a twelvemonth earlier.

Taco Bell was the standout performer, with its same-store income coming successful astatine 8% — good supra the 5.6% analysts had forecast, according to CNBC. U.S. strategy income for the concatenation roseate 10%, and operating nett accrued 16%. Digital strategy income crossed Yum approached $11 billion, with a grounds premix of 63%.

KFC posted same-store income maturation of 2% and portion maturation of 7%, adding 648 gross caller restaurants crossed 45 countries. Operating nett astatine KFC roseate 16% connected a reported basis. Domestically, KFC's strategy income contracted 2% implicit the period.

Pizza Hut remained the weakest portion of the portfolio. Global same-store income were flat, with U.S. same-store income down 4% and operating nett falling 14%. Yum said earlier this twelvemonth it would research strategical options for the chain. During the quarter, the institution recorded astir $37 cardinal successful charges tied to that review, chiefly third-party advising costs. Apollo Global Management and Sycamore Partners are among the backstage equity firms that person emerged arsenic imaginable acquirers, according to CNBC.

Yum besides received astir $44 million, nett of ineligible expenses, from a recognition paper interchange interest litigation settlement, which the institution recorded arsenic a peculiar item.

"Taco Bell delivered an outstanding 8% same-store income growth, meaningfully up of the [quick-service restaurant] industry, gathering disconnected a precise beardown Q1 same-store income maturation complaint successful 2025," CEO Chris Turner said successful a statement. "Yum! is incredibly good positioned to prolong income momentum acknowledgment to beardown planetary user entreaty for our brands, semipermanent depletion tailwinds, and our tech and AI capabilities."

Worldwide strategy income grew 6% excluding overseas currency translation, and portion number accrued 5% with 1,030 gross caller locations added during the quarter. Excluding Pizza Hut, strategy income grew 7% excluding currency effects and halfway operating nett grew 10%.

Yum operates much than 63,000 restaurants successful 155 countries and territories nether the KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill brands.