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Yum Brands Tops Sales Forecasts on Taco Bell Strength as EPS Misses and Pizza Hut Enters Review

Management has launched a formal Pizza Hut review that includes planned U.S. store closures.

Overview

  • For the quarter ended Dec. 31, worldwide same-store sales rose 3% versus roughly 2.74% expected, with revenue of $2.51 billion beating forecasts and adjusted EPS of $1.73 missing estimates.
  • Taco Bell U.S. same-store sales climbed about 7% on demand for value-focused combo meals priced around $5 to $11.99.
  • Operating margins at Taco Bell slipped by about 0.5 percentage points as higher commodity costs, including beef, weighed on profitability.
  • KFC posted 3% worldwide same-store sales growth, supported by international expansion and new store openings in key markets.
  • Yum confirmed a strategic review of Pizza Hut is underway, expects to complete it in 2026, and plans to close about 250 underperforming U.S. locations in the first half of 2026.