Yum Brands Inc

Latest Results (22.07.2026):

Yum Brands Inc (Yum! Brands, Inc.) — First quarter 2026: The company reported strong top- and bottom-line results for Q1 2026, with GAAP diluted EPS of $1.55 ($1.50 excluding Special Items, +15% year‑over‑year), worldwide system sales up 6% excluding foreign exchange, unit count up 5% (1,030 gross new units), and GAAP operating profit up 17% while Core Operating Profit rose 6%.

EPS and Net Income

GAAP diluted EPS was $1.55 for Q1 2026 (versus $0.90 in Q1 2025, +72%). EPS excluding Special Items was $1.50 (up 15% year-over-year). Reported net income was $432 million, up 71% from $253 million a year earlier.

Revenue and System Sales

Total revenues were $2.059 billion (up 15% YoY). Worldwide system sales grew 6% excluding foreign currency translation; excluding Pizza Hut, system sales grew 7% ex‑F/X.

Unit Growth and New Openings

Global unit count increased 5% year-over-year, with 1,030 gross new units in the quarter. Division openings: KFC +648 gross new restaurants, Pizza Hut +346, Taco Bell +30, Habit Burger +6.

Digital and Technology

Digital system sales approached $11 billion in the quarter, with a record digital mix of 63% of system sales — a continued driver of sales and customer engagement highlighted by management’s emphasis on tech and AI capabilities.

Profitability and Margins

GAAP operating profit was $644 million (+17% YoY). Core Operating Profit (ex‑Special Items and F/X) was $612 million (+6% YoY). Company‑owned restaurant margins improved in key divisions (e.g., KFC company restaurant margin 10.3%, Taco Bell U.S. company‑owned margin ~23.9%).

Division Highlights

KFC (Q1 2026): Restaurants 34,332 (+7%); system sales +6% ex‑F/X; same‑store sales +2%; operating profit $383M (+16% GAAP). Taco Bell (Q1 2026): Restaurants 9,021 (+3%); U.S. same‑store sales +8%, system sales +10% ex‑F/X; operating profit $281M (+16%). Pizza Hut (Q1 2026): Restaurants 19,944 (+1%); system sales roughly even ex‑F/X; same‑store sales flat; operating profit declined to $64M (down 14% GAAP).

Foreign Exchange and Special Items

Foreign currency translation favorably impacted divisional operating profit by about $25 million in the quarter. Notable Special Items: ~$37M of costs tied to the Pizza Hut strategic options review, ~$1M Brand HQ consolidation charges, and a $44M net litigation settlement recorded as Other income; Special Items net to a modest benefit to operating profit in Q1.

Cash Flow and Balance Sheet Notes

Net cash provided by operating activities was $416M for the quarter. Cash and cash equivalents ended at $689M (note consolidated cash, cash equivalents and restricted cash reported $889M in cash-flow table end-of-period). Short-term borrowings rose in the quarter; long‑term debt remains sizeable ($10.2B at 3/31/26).

Long‑Term Targets

Management reiterated its long-term algorithm targets: ~5% unit growth, ~7% system sales growth excluding F/X, and at least 8% Core Operating Profit growth on average over time.