Companies /Consumer Cyclical

Yum Brands Inc

NYSE: YUM Restaurants
$153.31
▼ $0.55 (−0.36%) today
Markets closed · 9:51pm ET

Q2 2025 Earnings

Reported Aug 5, 2025, 7:01am ET · SEC source
$1.44
Miss −1.32%
EPS · est. $1.46
$1.9B
Miss −0.31%
Revenue · est. $1.9B
+0.6%
Beating market
YUM vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0Aug 5Aug 6report 7:01am ETearnings−0.1%−1.9%
−2%0Aug 5Aug 6earnings−0.1%−1.9%
YUM −1.9%S&P 500 −0.1%
−2%0Aug 5Aug 6report 7:01am ETearnings−0.1%−1.9%
−2%0Aug 5Aug 6earnings−0.1%−1.9%
YUM −1.9%NASDAQ −0.1%
−2%0+2%Aug 4Aug 12report 7:01am ETearnings+1.6%−1.7%
−2%0+2%Aug 4Aug 12earnings+1.6%−1.7%
YUM −1.7%S&P 500 +1.6%
−2%0+2%Aug 4Aug 12report 7:01am ETearnings+2.5%−1.7%
−2%0+2%Aug 4Aug 12earnings+2.5%−1.7%
YUM −1.7%NASDAQ +2.5%
−5.10%
Day of report
+1.32%
Next session
+1.86%
One week
+3.64%
30 days

S&P 500 over the same 30 days: +3.07%.

Did YUM Beat Earnings? Q2 2025 Results

Yum! Brands delivered a modest earnings miss in Q2 2025, with adjusted EPS of $1.44 falling just short of the $1.46 consensus estimate by 1.32%, while revenue of $1.93 billion trailed expectations by 0.31% despite rising 9.6% year-over-year, sending shares down roughly 3% in the immediate aftermath. The results reflected a tale of sharply divided brand performance: Taco Bell was the clear bright spot, posting 4% same-store sales growth and 6% system sales growth ex-FX, while KFC International drove unit expansion with 565 gross new openings in the quarter. Offsetting those gains, KFC U.S. same-store sales fell 5% and Pizza Hut operating profit dropped 15%, weighed down by technology spending timing and franchise transition costs. Digital momentum remained a genuine positive, with digital system sales exceeding $9 billion at a record 57% mix. Looking ahead, Yum reiterated its long-term targets of 5% unit growth and at least 8% core operating profit growth, while a planned CEO transition to CFO Chris Turner in October adds a layer of strategic uncertainty heading into the second half.

Key Takeaways
  • Taco Bell U.S. meaningfully outpaced the category with 4% same-store sales growth
  • KFC International opened 565 gross new units with 7% system sales growth ex-FX
  • Digital system sales exceeded $9 billion with record 57% digital sales mix
  • 871 gross new units opened system-wide, growing unit count 3%
  • Worldwide system sales grew 4% excluding foreign currency translation
  • Foreign currency translation favorably impacted divisional operating profit by $4 million

“Our second-quarter results are a testament to the power of our bold food innovation, digital transformation, and the strength of our iconic brands. Taco Bell U.S. meaningfully outpaced the category with 4% same-store sales growth, and KFC International opened 565 gross new units. I am confident that with our strong development across the system, improving value propositions, and exciting new uses of our proprietary, integrated tech stack, Yum! is well positioned to win in an ever-changing consumer landscape.”

Yum Brands CEO, on the earnings call

Forward Guidance & Outlook

Yum! Brands maintains its long-term growth algorithm targets: 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). Taco Bell is pursuing a long-term beverage strategy targeting $5 billion in beverage sales by 2030 through its Live Más Café concept, which is scaling to 30 locations by year-end 2025.

YUM YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$600.0M$1.2B$1.8B$1.8B$1.9BRevenue$607.0M$622.0MOperating Income$367.0M$374.0MNet Income
$0$600.0M$1.2B$1.8BRevenueOperating IncomeNet Income

YUM Revenue by Segment

KFC$849.0M
Taco Bell$711.0M
Pizza Hut$239.0M
Habit Burger & Grill$134.0M

Figures from SEC filings and company reports. Not investment advice.