Yum Brands Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did YUM Beat Earnings? Q1 2025 Results
Yum! Brands posted a mixed but broadly encouraging first quarter for 2025, beating earnings expectations while falling short on revenue. Adjusted EPS came in at $1.30, edging past the $1.28 consensus by 1.41%, as core operating profit grew 8% to $586.00 million. Revenue of $1.79 billion trailed the $1.85 billion estimate by 3.44%, though it still represented an 11.8% increase year-over-year. The standout driver was Taco Bell, where 9% U.S. same-store sales growth and value-focused offerings drew consumers in a cautious spending environment, more than offsetting continued weakness at Pizza Hut, which saw same-store sales fall 2% worldwide. KFC International added momentum with 3% same-store sales growth and 7% unit expansion. CEO David Gibbs, who announced his intention to retire in Q1 2026, noted that the company's largely localized supply chain leaves it well insulated from tariff pressures. Yum reiterated its long-term targets of 5% unit growth, 7% system sales growth, and at least 8% core operating profit growth, with stronger performance expected in the second half of the year.
- Taco Bell U.S. same-store sales growth of 9% driving 11% system sales growth
- KFC International same-store sales growth of 3% with 7% unit growth year-over-year
- Digital system sales approaching $9 billion with approximately 55% digital mix
- 751 gross new unit openings across all brands in the quarter
- Core Operating Profit growth of 8% excluding F/X and Special Items
“I'm incredibly proud of our teams' ability to stay nimble and deliver industry-leading results in a complex consumer environment. This quarter, we achieved 8% Core Operating Profit growth, demonstrating the strength and resilience of our business model. Our twin growth engines led the way, with Taco Bell U.S. reporting a remarkable 9% same-store sales growth and KFC International accelerating same-store sales growth while generating 7% unit growth year-over-year.”
Yum Brands CEO, on the earnings call
Forward Guidance & Outlook
The company reiterated its long-term growth algorithm targeting 5% unit growth, 7% system sales growth (excluding F/X and 53rd week), and at least 8% core operating profit growth (excluding F/X and 53rd week), which it believes it can achieve over an extended period of time on average. Taco Bell announced its R.I.N.G. The Bell growth plan with bold growth targets through 2030 and an innovation pipeline of over 30 new products. CEO David Gibbs announced his intention to retire in Q1 2026, with a board selection committee established to identify a successor.
YUM YoY Financials
YUM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.