Financial Highlights

• Earnings Per Share: Adjusted earnings stood at $1.30, surpassing analyst expectations of $1.29.
• Revenue: Total revenue was reported at $1.79 billion, falling short of the anticipated $1.85 billion.
• Net Income: The company’s net income dropped to $253 million, translating to 90 cents per share, down from $314 million or $1.10 per share a year prior.

Excluding one-time expenses associated with relocating KFC’s U.S. headquarters to Texas, the adjusted earnings per share were also $1.30.

Brand Performance

Yum Brands experienced varied performance across its key segments, highlighting the competitive challenges within the fast-food market.

Pizza Hut

Pizza Hut, in particular, struggled this quarter, reporting a 2% decrease in same-store sales, which was significantly worse than the projected decline of 0.1%. U.S. same-store sales plummeted by 5%, while international markets remained steady.

Taco Bell

Taco Bell emerged as the standout performer, achieving a 9% rise in same-store sales, exceeding the 8% forecast. The brand benefited from increased customer traffic and popular menu items such as the Steak and Queso Crunchwrap sliders and Crispy Chicken Nuggets.

KFC

KFC also posted a 2% increase in same-store sales, surpassing expectations of 1.4%. However, the domestic market faced challenges, as U.S. sales dipped by 1%, impacted by rising competition from brands like Wingstop and Raising Cane’s.

Digital Sales and Future Outlook

Digital orders, including those placed through mobile apps and kiosks, accounted for 55% of Yum’s total sales this quarter. The company emphasized that it does not anticipate significant disruptions to its global supply chain from ongoing trade tensions.

Looking ahead, Yum Brands reiterated its commitment to achieving its long-term goal of 8% core operating profit growth, although it projects lower profit growth in the first half of 2025 due to certain extraordinary expenses.

Leadership Changes

In a notable development, Yum Brands has appointed Catherine Tan-Gillespie as the new leader for KFC’s domestic operations, succeeding in a strategic move aimed at revitalizing the brand’s market presence.

CEO Transition

Lastly, CEO David Gibbs announced plans to retire in early 2026, with the board currently searching for his successor to lead the company into its next phase.