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Yum Brands

Yum Brands (YUM) Q2 2026 Earnings

Reported Jul 30, 2026 at 7:01 AM ET · SEC Source

Q2 26 EPS

$1.62

BEAT +3.71%

Est. $1.56

Q2 26 Revenue

$2.17B

MISS 0.34%

Est. $2.18B

vs S&P Since Q2 26

-4.4%

TRAILING MARKET

YUM -0.2% vs S&P +4.3%

Market Reaction

Did YUM Beat Earnings? Q2 2026 Results

Yum! Brands posted a solid beat on the bottom line in Q2 2026, with adjusted EPS of $1.62 topping the $1.56 consensus estimate by 3.71%, even as revenue of $2.17 billion came in just 0.34% shy of the $2.18 billion Wall Street expected, still represen… Read more Yum! Brands posted a solid beat on the bottom line in Q2 2026, with adjusted EPS of $1.62 topping the $1.56 consensus estimate by 3.71%, even as revenue of $2.17 billion came in just 0.34% shy of the $2.18 billion Wall Street expected, still representing a robust 12.3% year-over-year gain. The defining story of the quarter was the company's announcement of definitive agreements to sell its Pizza Hut business, offloading the chain's non-China operations to LongRange Capital and its Mainland China business to Yum China, a strategic pivot that will leave Yum! Focused on KFC, Taco Bell, and Habit Burger & Grill. Taco Bell carried the quarter operationally, delivering 7% same-store sales growth and a 19% surge in operating profit to $311.00 million, a result made more striking given that a cyclospora outbreak linked to the brand's lettuce supply had drawn investor scrutiny heading into the print. Management reiterated its long-term algorithm targeting 5% unit growth and at least 8% Core Operating Profit growth, as the pending Pizza Hut divestitures are expected to close in Q3 2026.

Key Takeaways

  • • Taco Bell same-store sales growth of 7% in Q2
  • • KFC unit growth of 7% with 660 gross new restaurant openings
  • • Worldwide system sales growth of 5% ex-FX
  • • Digital system sales mix excluding Pizza Hut exceeded 60%
  • • Digital system sales excluding Pizza Hut approached $9 billion
  • • Favorable foreign currency translation impact of $16 million on divisional operating profit
  • • Taco Bell U.S. company-owned restaurant margins of 26.2%

YUM Forward Guidance & Outlook

The company 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 pending sale of Pizza Hut to two buyers is expected to close at significant book gains in Q3 2026 and position Yum! as a more focused organization to accelerate growth. KFC's brand refresh and menu revamp is targeted to have core elements live across its Top 20 markets by the end of 2027.

24/7 Wall St

YUM YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

YUM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“We delivered another strong quarter with robust same-store sales and restaurant-level margin performance. We also reached separate definitive agreements with two exceptional buyers for the Pizza Hut business, bringing our strategic review process to a close. Yum! will enter its next chapter as a more focused organization positioned to accelerate growth. As we continue to Raise the B.A.R., our priorities are to deepen consumer relevance, improve restaurant economics, bring the benefits of Byte by Yum! to more of our system and allocate capital in a way that creates sustained shareholder value. Our message is straightforward: Yum! is built for dependable growth, disciplined execution and long-term value creation.”

— Chris Turner, Q2 2026 Earnings Press Release

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