Yum! Brands (YUM) Q4 2025 earnings summary

Executive summary

• KFC and Taco Bell delivered 10% divisional core operating profit growth year-over-year, with Taco Bell gaining market share and 7% same-store sales growth.

• KFC reached 30,000 international restaurants and led record unit development, while Taco Bell's system sales rose nearly 40% since 2021.

• Fourth-quarter GAAP operating profit increased 12% year-over-year; Core Operating Profit excluding the 53rd week rose 11%.

• Digital sales grew 20% year-over-year, with digital mix approaching 60% and investments in technology platforms and loyalty programs driving momentum.

• Strategic review of Pizza Hut is ongoing, with targeted closures and modernization efforts underway.

Financial highlights

• Q4 system sales grew 5%, driven by 3% unit growth and 3% same-store sales growth; digital sales topped $11 billion, up 25% year-over-year.

• Full-year system sales grew 5%, led by Taco Bell at 8% and KFC at 6%; Q4 company restaurant margins were 16%.

• Q4 net income was $535M (+27% YoY); full-year net income was $1,559M (+5% YoY).

• Q4 core operating profit grew 11%; ex special EPS was $1.73. Full-year core operating profit grew 7%, ex special EPS was $6.05, up 10%.

• Q4 total revenues were $2,514M (+6% YoY); full-year revenues were $8,214M (+9% YoY).

Outlook and guidance

• Excluding Pizza Hut, portfolio expected to meet or exceed long-term growth algorithm, including over 5% net new unit growth and Taco Bell US margins of 24%-25%.

• Targets long-term average annual growth of 5% in units, 7% in system sales (ex-F/X), and at least 8% in Core Operating Profit.

• Ex special G&A to grow mid-single digits; interest expense expected at $500M-$520M; tax rate in the 22%-24% range.

• Pizza Hut Q1 core operating profit expected to be down ~15% due to one-time marketing support and integration costs.

• Entering 2026 with strategic focus on accelerating long-term growth and 'Raise the Bar' priorities.