Yum Brands Reports Strong Q1 Earnings, Taco Bell Drives Growth

Yum Brands on Wednesday reported quarterly earnings and revenue that topped analysts' expectations, fueled by another strong quarter for Taco Bell. Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Earnings per share: $1.50 adjusted vs. $1.38 expected Revenue: $2.06 billion vs. $2.04 billion expected Yum reported first-quarter net income of $432 million, or $1.55 per share, up from $253 million, or 90 cents per share, a year earlier. Excluding charges related to its strategic review of Pizza Hut and other items, the company earned $1.50 per share. Net sales climbed 15% to $2.06 billion, lifted by higher revenue from company-owned restaurants. Last year, the company bought more than 100 Taco Bell locations across the Southeast with a goal of accelerating development and profitability. Across Yum, global same-store sales rose 3%, driven by growth at Taco Bell, the gem of the company's portfolio. Taco Bell's same-store sales increased 8%, topping Wall Street's estimates of 5.6% growth, according to a survey by StreetAccount. "Taco Bell delivered an outstanding 8% same-store sales growth, meaningfully ahead of the [quick-service restaurant] industry, building off a very strong Q1 same-store sales growth rate in 2025," Yum CEO Chris Turner said in a statement. KFC reported same-store sales growth of 2%, shy of the 2.5% increase projected by StreetAccount. While the fried chicken chain's international business is considered one of Yum's "growth engines," its U.S. business has struggled in recent years, buckling under increased competition and consumers' value expectations. KFC U.S. system sales fell 2% during the first quarter. To win back customers, KFC is taking some cues from Taco Bell's successful playbook by leaning into innovation and affordability. Similarly, Pizza Hut saw stronger results outside of its home market. The struggling pizza chain reported flat same-store sales globally, although its international business saw same-store sales rise 2% in the quarter. Its U.S. same-store sales shrank 4%. Analysts were projecting global same-store sales declines of 0.7% for Pizza Hut, according to StreetAccount. In November, Yum said it would explore strategic options for the chain, which has long been the laggard of its portfolio. Several private equity firms, including Apollo Global Management and Sycamore Partners, are among the potential buyers vying for Pizza Hut, Reuters reported earlier this month. While Yum did not provide an update on the strategic review on Wednesday, its earnings release did include a bullet point showing the company's system sales, unit count and core operating profit excluding Pizza Hut.