Yum Brands Earnings: Revenue Tops; EPS Misses

Yum! Brands reported fourth-quarter and full-year 2025 results on Feb. 4, 2026, saying revenue topped forecasts as Taco Bell and KFC drove growth, even as GAAP earnings per share (EPS) missed estimates and the company raised its quarterly dividend.

Fourth-Quarter Results and Dividend Increase

Yum! Brands said fourth-quarter revenue reached $2.51 billion, up 6% year over year and exceeding analyst estimates between $2.45 billion and $2.48 billion. GAAP operating profit rose 12%, while core operating profit excluding the 53rd-week lap increased 11%. CEO Chris Turner said, "Yum! delivered another year of outstanding results at KFC and Taco Bell with our fundamentals stronger than ever at both brands."

The company reported GAAP EPS of $1.91, lifting net income 27% to $535 million. Adjusted EPS rose 8% to $1.73 but fell short of analyst expectations in the $1.76 to $1.79 range. For the full year, GAAP operating profit increased 7% on both a reported and core basis, with GAAP EPS at $5.55 and ex-special-items EPS at $6.05, up 10% from 2024.

Yum! raised its quarterly dividend 6% to $0.75 per share, payable Mar. 6, 2026, to shareholders of record on Feb. 20, 2026.

Brand Performance, Unit Growth, and Outlook

Worldwide system sales rose 5% in the quarter on an ex-foreign-exchange and ex-53rd-week basis, while companywide same-store sales increased 3%. Taco Bell led with system sales up 8% and U.S. same-store sales rising 7%. KFC added 6% in system sales and achieved record unit development. Pizza Hut’s system sales declined 5% as the company began reviewing strategic options for the brand.

Yum! opened 1,814 gross new restaurants in the quarter, a 3% increase from a year earlier, bringing full-year gross openings to 4,567. Digital sales exceeded $11 billion in the quarter, accounting for roughly 60% of total sales, with full-year digital sales near $40 billion.

Management outlined 2026 targets including net new unit growth above 5%, Taco Bell U.S. restaurant-level margins of 24% to 25%, and digital sales driving about 25% of Taco Bell’s average unit volume growth. KFC International plans to accelerate economics through a "raise the bar" strategy. The company reiterated long-term Taco Bell goals of at least 10,000 North American units and 3,000 international locations. Excluding Pizza Hut and special items, general and administrative expenses are expected to grow in the mid-single-digit range, reflecting acquisition overhead from Taco Bell.

Yum China Results and Shareholder Returns

Yum China reported fourth-quarter system sales up 7% on a constant-currency basis, same-store sales up 3%, and operating profit rising 25% year over year. For the full year, operating profit increased 11%. The company raised its dividend by 21% and said it is on track for $1.5 billion in shareholder returns in 2026.