Yum! Brands Reports First-Quarter Results

Taco Bell Same-Store Sales Growth 8%; KFC Unit Growth 7%;
Record Digital System Sales Mix of 63%

LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the first quarter ended March 31, 2026. First-quarter GAAP EPS was $1.55 and first-quarter EPS excluding Special Items was $1.50, a 15% increase year-over-year.

CHRIS TURNER COMMENTS

Chris Turner, CEO, said "We delivered solid topline momentum to start the year, with our fundamentals as strong as ever. 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. 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."

FIRST-QUARTER HIGHLIGHTS

• Worldwide system sales grew 6%, excluding foreign currency translation.
• Unit count increased 5% including 1,030 gross new units in the quarter.
• GAAP Operating Profit grew 17% and Core Operating Profit grew 6%.
• Digital system sales approached $11 billion, with record digital mix of 63%.
• Foreign currency translation favorably impacted divisional operating profit by $25 million.
• Excluding Pizza Hut, system sales grew 7% excluding foreign currency translation, unit count grew 6% and Core Operating Profit grew 10%.

Reported Results	% Change
	System Sales Ex F/X	Same-Store Sales	Units	GAAP Operating Profit	Core Operating Profit^1
KFC Division	+6	+2	+7	+16	+9
Taco Bell Division	+10	+8	+3	+16	+16
Pizza Hut Division	Even	Even	+1	(14)	(16)
Worldwide	+6	+3	+5	+17	+6

	First-Quarter
	2026	2025	% Change
GAAP EPS	$1.55	$0.90	+72
Less Special Items EPS^1	$0.05	$(0.40)	NM
EPS Excluding Special Items	$1.50	$1.30	+15

^1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items. All comparisons are versus the same period a year ago. System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details. Digital system sales includes all transactions at system restaurants where consumers utilize ordering interaction that is primarily facilitated by automated technology.

KFC DIVISION

	First-Quarter
			%/ppts Change
	2026	2025	Reported	Ex F/X
Restaurants	34,332	31,998	+7	N/A
System Sales ($MM)	9,328	8,340	+12	+6
Same-Store Sales Growth (%)	+2	+2	NM	NM
Franchise and Property Revenues ($MM)	461	407	+13	+7
Operating Profit ($MM)	383	331	+16	+9
Operating Margin (%)	43.6	42.9	+0.7	+0.9

• KFC Division opened 648 gross new restaurants across 45 countries.
• Company-owned restaurant margins were 10.3%, up 100 basis points year-over-year.
• Foreign currency translation favorably impacted operating profit by $23 million.

KFC Markets^1	Percent of KFC System Sales^2	System Sales Growth Ex F/X
		First-Quarter (% Change)
China	26%	+5
Europe	13%	+2
United States	12%	(2)
Asia	12%	+11
Latin America	8%	+12
Australia	7%	+4
United Kingdom	7%	+9
Middle East / Turkey / North Africa	6%	+19
Africa	5%	+8
Canada	2%	(1)
India	2%	+16

^1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. ^2Reflects Full Year 2025.

TACO BELL DIVISION

	First-Quarter
			%/ppts Change
	2026	2025	Reported	Ex F/X
Restaurants	9,021	8,723	+3	N/A
System Sales ($MM)	4,394	3,980	+10	+10
Same-Store Sales Growth (%)	+8	+9	NM	NM
Franchise and Property Revenues ($MM)	251	234	+7	+7
Operating Profit ($MM)	281	241	+16	+16
Operating Margin (%)	35.2	36.7	(1.5)	(1.5)

• Taco Bell Division opened 30 gross new restaurants across 8 countries.
• Taco Bell U.S. system sales grew 10% and same-store sales grew 8%. U.S. company-owned restaurant margins were 23.9%.
• Taco Bell International system sales excluding foreign currency translation grew 16% and same-store sales grew 5%.

PIZZA HUT DIVISION

	First-Quarter
			%/ppts Change
	2026	2025	Reported	Ex F/X
Restaurants	19,944	19,786	+1	N/A
System Sales ($MM)	3,114	3,028	+3	Even
Same-Store Sales Growth (%)	Even	(2)	NM	NM
Franchise and Property Revenues ($MM)	142	143	(1)	(3)
Operating Profit ($MM)	64	74	(14)	(16)
Operating Margin (%)	25.4	32.3	(6.9)	(7.2)

• Pizza Hut Division opened 346 gross new restaurants across 27 countries.
• Foreign currency translation favorably impacted operating profit by $2 million.

	First-Quarter (% Change)
	International	U.S.
System Sales Growth Ex F/X	+4	(6)
Same-Store Sales Growth	+2	(4)

Pizza Hut Markets^1	Percent of Pizza Hut System Sales^2	System Sales Growth Ex F/X
		First-Quarter (% Change)
United States	40%	(6)
China	19%	+8
Asia	13%	+6
Europe	12%	(8)
Latin America	7%	+8
Middle East / Africa	4%	+11
Canada	3%	(2)
India	2%	+1

^1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets. ^2Reflects Full Year 2025.

HABIT BURGER & GRILL DIVISION

• Habit Burger & Grill Division opened 6 gross new restaurants.
• Habit Burger & Grill Division system sales grew 7% and same-store sales grew 5%.

OTHER ITEMS

• See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Special Items by financial statement line item including the impact of Special Items on General and administrative expenses.
• Disclosures pertaining to outstanding debt in our Restricted Group capital structure will be provided at the time of the filing of the first-quarter Form 10-Q.

LONG-TERM GROWTH ALGORITHM

• The Company targets the following long-term financial performance metrics, first announced in 2022, that it believes it can achieve over an extended period of time, on average:
  • 5% Unit Growth
  • 7% System Sales Growth, excluding F/X; and
  • At least 8% Core Operating Profit Growth¹

^1At this time, we are unable to forecast any Special Items or any impact from changes in F/X rates, and therefore cannot provide an estimate of Operating Profit Growth on a GAAP basis.

CONFERENCE CALL

Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 8:15 a.m. Eastern Time April 29, 2026. The number is 800/715-9871 for North America callers and +1/646-307-1963 for international callers, conference ID 8719077.

The call will be available for playback beginning at 10:00 a.m. Eastern Time April 29, 2026 through May 6, 2026. To access the playback, dial +1/800-770-2030 in North America and +1/609-800-9909 for all international callers, conference ID 8719077.

The webcast and the playback can be accessed by visiting Yum! Brands' website, investors.yum.com/events-and-presentations and selecting “Q1 2026 Yum! Brands, Inc. Earnings Call.”

ADDITIONAL INFORMATION ONLINE

Quarter-end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at investors.yum.com. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included in our Condensed Consolidated Summary of Results.

FORWARD-LOOKING STATEMENTS

This announcement may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved.

Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food- or beverage-borne illness concerns; adverse impacts of public health conditions or other catastrophic or unforeseen events; the success and financial stability of our concepts’ franchisees; the success of our development strategy; anticipated benefits from past or potential future acquisitions, investments, other strategic transactions or initiatives, or our portfolio business model; the possibility that we may not be able to realize the anticipated benefits of a strategic review of the Pizza Hut brand or any potential transaction involving Pizza Hut; our significant exposure to the Chinese market; our global operations and related exposure to geopolitical instability, including the expansion or threatened expansion of restrictive trade policies and increasing anti-American sentiment; foreign currency risks and foreign exchange controls; our ability to protect the integrity or availability of IT systems or the security of confidential information and other cybersecurity risks; compliance with data privacy, data protection and emerging technology legal requirements; our ability to successfully and securely implement technology initiatives, including utilization of artificial intelligence; our increasing dependence on digital commerce and delivery platforms; the impact of social media; our ability to protect our trademarks or other intellectual property; shortages or interruptions in the availability and the delivery of food, equipment and other supplies; the loss of key personnel or failure to successfully transition senior management, labor shortages and increased labor costs, including as a result of state and local legislation related to wages and working conditions; changes in food prices and other operating costs; our corporate reputation, the value and perception of our brands and changes in consumer preferences such as wellness trends; evolving expectations and requirements with respect to social and environmental sustainability matters; adverse effects of severe weather and climate change; pending or future litigation and legal claims or proceedings; changes in, or non-compliance with, legal requirements; tax matters, including changes in tax rates or laws, impositions of new taxes, tax implications of our restructurings, or disagreements with taxing authorities; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and interest rate conditions; competition within the retail food industry; and risks relating to our level of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances.

You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions “Risk Factors” and “Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results.

Yum! Brands, Inc., and its subsidiaries franchise or operate more than 63,000 restaurants in 155 countries and territories under its iconic brands — KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. KFC, Taco Bell and Pizza Hut are global leaders in the chicken, Mexican-inspired food and pizza categories, respectively. Habit is a fast-casual concept known for fresh, cooked-to-order food. Fueled by Yum!’s Recipe for Good Growth, KFC, Taco Bell and Pizza Hut led Entrepreneur's 2026 Franchise 500 rankings and its Top Global Franchises 2025 list. In 2026, Yum!’s unrivaled culture and talent led it to be named one of TIME magazine’s list of Best Companies for Future Leaders for the third consecutive year.

Category: Earnings