Yum! Brands delivered a quarter that modestly exceeded Wall Street’s revenue expectations, underpinned by ongoing strength at KFC and Taco Bell. Management highlighted the impact of digital adoption, with nearly 60% of systemwide sales now generated through digital channels, and noted robust international development, particularly at KFC. CEO Chris Turner cited Taco Bell’s continued market share gains and KFC’s record unit growth as key contributors. Turner emphasized, “Our digital capabilities continued to be a powerful sales driver in 2025…with digital sales growing 20% year over year.”
Is now the time to buy YUM? Find out in our full research report (it’s free for active Edge members).
Yum! Brands (YUM) Q4 CY2025 Highlights:
- Revenue: $2.51 billion vs analyst estimates of $2.45 billion (6.4% year-on-year growth, 2.5% beat)
- Adjusted EPS: $1.73 vs analyst expectations of $1.76 (1.5% miss)
- Adjusted EBITDA: $853 million vs analyst estimates of $828.5 million (33.9% margin, 3% beat)
- Operating Margin: 29.4%, up from 27.8% in the same quarter last year
- Locations: 63,285 at quarter end, up from 61,346 in the same quarter last year
- Same-Store Sales rose 3% year on year (1% in the same quarter last year)
- Market Capitalization: $44 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Yum! Brands’s Q4 Earnings Call
- Dennis Geiger (UBS) asked about opportunities to accelerate growth post-Pizza Hut review. CEO Chris Turner explained that the “raise the bar” strategy aims to further strengthen Taco Bell and KFC’s growth profile, focusing on unit development and restaurant economics.
- David Palmer (Evercore ISI) questioned the outlook for KFC’s non-China unit growth and profitability. Turner detailed how market-by-market focus and franchisee support are expected to unlock development and potentially improve franchise revenue mix.
- David Tarantino (Baird) inquired about the sustainability of above-5% unit growth at KFC and Taco Bell. CFO Ranjith Roy affirmed that the long-term goal is to accelerate development by targeting higher AUV (average unit volume) markets and leveraging global partnerships.
- Jon Tower (Citi) asked about the source of Taco Bell’s comp growth and demographic shifts. Turner responded that traffic gains were driven by both increased guest frequency and penetration among younger and higher-income consumers.
- Christine Cho (Goldman Sachs) sought detail on Byte platform adoption and technology-related expenses. Roy outlined U.S. system penetration, international rollout plans, and continued investment in technology as core to the long-term strategy.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will focus on (1) the pace of Byte platform adoption and its impact on operational metrics, (2) the success of KFC and Taco Bell’s new menu and value initiatives in driving guest traffic and unit-level profitability, and (3) progress on the Pizza Hut strategic review, particularly the stabilization of U.S. operations and closure execution. Continued international store development and franchisee economics will also be critical signposts for sustained growth.
Yum! Brands currently trades at $161.93, up from $158.74 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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