Overview
- Fourth-quarter revenue rose 6% to $2.51 billion, topping estimates, while adjusted EPS of $1.73 came in below the $1.77 consensus as worldwide same-store sales increased 3%.
- Taco Bell U.S. same-store sales climbed about 7% on demand for value-focused items and combo meals priced roughly $5 to $11.99, though its operating margin slipped by 0.5 percentage point due to higher costs.
- KFC posted 3% global same-store sales growth, including about 1% in the U.S., as international expansion benefited from consumer trade-down to chicken and rising demand reported by Tyson Foods.
- Pizza Hut remained a drag with quarterly same-store sales down 1% and nine straight declines, and Yum said it targets completing the brand’s strategic review in 2026 and plans to close about 250 underperforming U.S. locations in the first half of the year.
- Taco Bell’s U.S. business accounts for roughly 36% of Yum’s operating profit, underscoring how value-led offerings are steering performance across the portfolio.