Yum Brands

YUM Q1 2026 Earnings

Reported Apr 29, 2026 at 7:02 AM ET · SEC Source

Q1 26 EPS

$1.50

Q1 26 Revenue

$2.06B

BEAT +0.78%

Est. $2.04B

vs S&P Since Q1 26

-7.1%

TRAILING MARKET

YUM -3.4% vs S&P +3.6%

Market Reaction

Did YUM Beat Earnings? Q1 2026 Results

Yum! Brands kicked off fiscal 2026 with a stronger-than-expected quarter, posting adjusted diluted EPS of $1.50, beating the $1.39 consensus estimate by 7.95%, while revenue of $2.06 billion edged past the $2.04 billion forecast and climbed 15.2% yea… Read more Yum! Brands kicked off fiscal 2026 with a stronger-than-expected quarter, posting adjusted diluted EPS of $1.50, beating the $1.39 consensus estimate by 7.95%, while revenue of $2.06 billion edged past the $2.04 billion forecast and climbed 15.2% year over year. The primary engine behind the beat was Taco Bell, where U.S. Same-store sales surged 8% and total division revenue jumped 21% to $797 million, with company restaurant margins expanding 1.2 percentage points to 23.6%. KFC added further momentum, contributing 7% unit growth across 45 countries and 6% system sales growth excluding foreign exchange. Pizza Hut remained a drag, with U.S. Same-store sales falling 4% and division operating profit declining 14% to $64 million, prompting management to incur $37 million in advisory costs tied to an ongoing strategic review of the brand. Looking ahead, Yum! Reiterated its long-term algorithm targeting 5% unit growth, 7% system sales growth ex-FX, and at least 8% core operating profit growth, citing global consumer demand and expanding technology capabilities as key supports.

Key Takeaways

  • Taco Bell U.S. same-store sales growth of 8%, meaningfully ahead of QSR industry
  • KFC unit growth of 7% with 648 gross new restaurants across 45 countries
  • Worldwide system sales grew 6% excluding foreign currency translation
  • Digital system sales approached $11 billion with record 63% digital mix
  • KFC company-owned restaurant margins improved 100 basis points to 10.3%
  • Taco Bell International system sales grew 16% ex-FX with 5% same-store sales growth
  • Foreign currency translation favorably impacted divisional operating profit by $25 million
  • $44 million net litigation settlement from credit card interchange fees
  • Effective tax rate excluding Special Items improved to 18.0% from 19.8%
24/7 Wall St

YUM YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

YUM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“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.”

— Chris Turner, Q1 2026 Earnings Press Release