Yum Brands Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.15%.
Did YUM Beat Earnings? Q4 2025 Results
Yum! Brands delivered a mixed fourth quarter for fiscal 2025, beating on revenue while falling just short on the bottom line, as strong top-line momentum across its global portfolio was offset by a collection of special items weighing on per-share earnings. The Louisville-based restaurant giant posted non-GAAP EPS of $1.73, missing the $1.77 consensus estimate by 2.26%, while revenue of $2.51 billion came in ahead of the $2.46 billion Wall Street expected, a 2.38% beat representing 6.4% year-over-year growth. Taco Bell was the clear engine of the quarter, delivering 7% same-store sales growth and gaining market share, while KFC set a development record with over 1,100 new store openings across 105 countries in Q4 alone. Pizza Hut remained a soft spot, with same-store sales down 1%, prompting the company to launch a strategic options review for the brand. Analysts currently rate the stock a "Moderate Buy" and project roughly 9.4% EPS growth in 2026, consistent with management's reiterated long-term algorithm targeting at least 8% core operating profit growth.
- Taco Bell same-store sales growth of 7% in Q4 and full year, gaining market share
- KFC record development with over 1,100 new store builds in Q4 and nearly 3,000 in 2025
- Digital system sales exceeding $11 billion in Q4 with nearly 60% digital mix
- Worldwide system sales grew 5% ex-FX excluding 53rd week lap
- KFC company-owned restaurant margins improved 40 basis points to 12.7% in Q4
- 1,814 gross new units opened in Q4; 4,567 gross new units for full year
“Yum! delivered another year of outstanding results at KFC and Taco Bell with our fundamentals stronger than ever at both brands. Taco Bell again gained market share with standout same-store sales performance, and KFC delivered another record-breaking year of unit development. We enter 2026 with a clear strategic focus on accelerating long-term growth, embodied in our multi-year 'Raise the Bar' priorities. I'm more convinced than ever that the combination of our global scale, unrivaled culture and talent, and world-class franchise partnerships create a unique and unbeatable competitive advantage.”
Yum Brands CEO, on the earnings call
Forward Guidance & Outlook
Yum! Brands reiterated its long-term growth algorithm targeting 5% unit growth, 7% system sales growth excluding foreign currency translation, and at least 8% core operating profit growth, on average over an extended period. The company enters 2026 with an ambitious strategic agenda focused on multi-year 'Raise the Bar' priorities to accelerate long-term growth. A strategic options review for the Pizza Hut brand is underway.
YUM YoY Financials
YUM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.