2025 Q4 and Full-Year Taco Bell Same-Store Sales Growth of 7%;

KFC Record Development with over 1,100 New Store Builds in Q4 and Nearly 3,000 in 2025

Yum! Brands, Inc. (NYSE:YUM) today reported results for the fourth quarter and year ended December 31, 2025. Fourth-quarter GAAP operating profit grew 12%, and fourth-quarter Core Operating Profit excluding the lap of the 53rd week grew 11%. Fourth-quarter GAAP EPS was $1.91, and EPS excluding Special Items was $1.73. Full-year GAAP operating profit grew 7%, and full-year Core Operating Profit excluding the lap of the 53rd week grew 7%. Full-year GAAP EPS was $5.55, and EPS excluding Special Items was $6.05, an increase of 10%.

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LEADERSHIP COMMENTS

Chris Turner, CEO, said "Yum! delivered another year of outstanding results at KFC and Taco Bell with our fundamentals stronger than ever at both brands. Taco Bell again gained market share with standout same-store sales performance, and KFC delivered another record-breaking year of unit development. We enter 2026 with a clear strategic focus on accelerating long-term growth, embodied in our multi-year 'Raise the Bar' priorities. I'm more convinced than ever that the combination of our global scale, unrivaled culture and talent, and world-class franchise partnerships create a unique and unbeatable competitive advantage."

Ranjith Roy, CFO, said "In the fourth quarter, Yum! demonstrated its unique ability to achieve strong performance while navigating a complex environment. We sustained strong topline results, delivered double-digit profit growth, completed a sizeable Taco Bell store acquisition and commenced a review of strategic options for the Pizza Hut brand. We have momentum entering 2026, an ambitious strategic agenda and are highly energized by the growth opportunities ahead."

SUMMARY FINANCIAL TABLE

	Fourth-Quarter			Full-Year
	2025	2024	% Change	2025	2024	% Change
GAAP EPS	$1.91	$1.49	+28	$5.55	$5.22	+6
Special Items EPS¹	$0.18	$(0.12)	NM	$(0.50)	$(0.26)	NM
EPS Excluding Special Items	$1.73	$1.61	+8	$6.05	$5.48	+10
¹See reconciliation of Non-GAAP Measurements to GAAP Results in our Consolidated Summary of Results for further detail of Special Items. All comparisons are versus the same period a year ago. Our fourth-quarter and full-year 2024 results included an extra week ("53rd week") for business units operating on a weekly periodic calendar. All results presented herein include the impact of lapping this 53rd week unless otherwise noted. System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results in our Consolidated Summary of Results for further details. Digital system sales includes all transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology.

FOURTH-QUARTER HIGHLIGHTS

Worldwide system sales grew 5%, excluding foreign currency translation and excluding lapping the 53rd week, led by Taco Bell at 8% and KFC at 6%.
We opened 1,814 gross units leading to 3% year-over-year unit growth.
Robust digital system sales exceeding $11 billion with digital mix nearly 60%.
Foreign currency translation favorably impacted divisional operating profit by $11 million.

	% Change
	System Sales Ex F/X	Same-Store Sales	Units	GAAP Operating Profit	Core Operating Profit¹
KFC Division	+4	+3	+6	+10	+7
Taco Bell Division	+3	+7	+3	+6	+6
Pizza Hut Division	(5)	(1)	(1)	+7	+6
Worldwide	+2	+3	+3	+12	+5

	Results Excluding Lapping 53rd Week % Change
	System Sales Ex F/X	Core Operating Profit¹
KFC Division	+6	+10
Taco Bell Division	+8	+12
Pizza Hut Division	(2)	+11
Worldwide	+5	+11

FULL-YEAR HIGHLIGHTS

Worldwide system sales grew 5%, excluding foreign currency translation and excluding lapping the 53rd week, led by Taco Bell at 8% and KFC at 6%.
We opened 4,567 gross units during the year.
Robust digital system sales approaching $40 billion with digital mix nearly 60%.
Foreign currency translation favorably impacted divisional operating profit by $12 million.

	% Change
	System Sales Ex F/X	Same-Store Sales	Units	GAAP Operating Profit	Core Operating Profit¹
KFC Division	+5	+3	+6	+10	+9
Taco Bell Division	+7	+7	+3	+8	+8
Pizza Hut Division	(3)	(1)	(1)	(9)	(9)
Worldwide	+4	+3	+3	+7	+5

	Results Excluding Lapping 53rd Week % Change
	System Sales Ex F/X	Core Operating Profit¹
KFC Division	+6	+10
Taco Bell Division	+8	+10
Pizza Hut Division	(2)	(8)
Worldwide	+5	+7

¹See reconciliation of Non-GAAP Measurements to GAAP Results in our Consolidated Summary of Results for further detail of Core Operating Profit.

KFC DIVISION

	Fourth-Quarter				Full-Year
			%/ppts Change				%/ppts Change
	2025	2024	Reported	Ex F/X	2025	2024	Reported	Ex F/X
Restaurants	33,897	31,981	+6	NA	33,897	31,981	+6	NA
System Sales ($MM)	10,033	9,429	+6	+4	36,434	34,452	+6	+5
Same-Store Sales Growth (%)	+3	Even	NM	NM	+3	(2)	NM	NM
Franchise & Property Revenues ($MM)	504	466	+8	+5	1,807	1,685	+7	+6
Operating Profit ($MM)	415	377	+10	+7	1,503	1,363	+10	+9
Operating Margin (%)	39.8	39.0	0.8	0.8	42.4	44.0	(1.6)	(1.4)

	Fourth-Quarter (% Change)		Full-Year (% Change)
	International	U.S.	International	U.S.
System Sales Growth Ex F/X	+6	(7)	+7	(5)
System Sales Growth Ex F/X and Excluding Lapping 53rd Week	+8	(2)	+7	(3)
Same-Store Sales Growth	+3	+1	+3	(1)

KFC Division opened 1,132 gross new restaurants during the quarter and 2,986 gross new restaurants across 105 countries for the year.
For the quarter, the 53rd week lap negatively impacted system sales growth by two percentage points and core operating profit growth by three percentage points. For the year, the 53rd week lap negatively impacted system sales growth by one percentage point and core operating profit growth by one percentage point.
For the quarter, company-owned restaurant margins were 12.7%, up 40 basis points year-over-year. For the year, company-owned restaurant margins were 12.1%, down 10 basis points year-over-year. The impact of lapping the 53rd week negatively impacted the change in company-owned restaurant margins by 20 basis points in the quarter and by 10 basis points for the year.
Foreign currency translation favorably impacted operating profit by $10 million for the quarter and $12 million for the year.

KFC Markets¹	Percent of KFC System Sales²	System Sales Growth Ex F/X and Excluding Lapping 53rd Week
KFC Markets¹	Percent of KFC System Sales²	Fourth-Quarter (% Change)	Full-Year (% Change)
China	27%	+9	+6
United States	13%	(2)	(3)
Europe	12%	+1	+5
Asia	11%	+11	+9
Latin America	8%	+13	+12
United Kingdom	7%	+10	+7
Australia	7%	+4	+3
Middle East / Turkey / North Africa	6%	+7	+8
Africa	5%	+7	+10
Canada	2%	+4	+7
India	2%	+9	+9

¹Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets.

²Reflects Full Year 2025.

TACO BELL DIVISION

	Fourth-Quarter				Full-Year
			%/ppts Change				%/ppts Change
	2025	2024	Reported	Ex F/X	2025	2024	Reported	Ex F/X
Restaurants	9,030	8,757	+3	NA	9,030	8,757	+3	NA
System Sales ($MM)	5,738	5,571	+3	+3	18,361	17,193	+7	+7
Same-Store Sales Growth (%)	+7	+5	NM	NM	+7	+4	NM	NM
Franchise & Property Revenues ($MM)	324	319	+2	+2	1,060	997	+6	+6
Operating Profit ($MM)	359	340	+6	+6	1,129	1,049	+8	+8
Operating Margin (%)	36.0	36.5	(0.5)	(0.5)	36.5	36.7	(0.2)	(0.2)

Taco Bell Division opened 228 gross new restaurants during the quarter and 376 gross new restaurants across 27 countries for the year.
Taco Bell U.S. system sales grew 2% and Taco Bell International system sales excluding foreign currency grew 11% for the quarter. For the year, Taco Bell U.S. system sales grew 6% and Taco Bell International system sales excluding foreign currency grew 11%.
Taco Bell U.S. same-store sales grew 7% and Taco Bell International same-store sales grew 5% for both the quarter and for the year.
For the quarter, the 53rd week lap negatively impacted system sales growth by five percentage points and core operating profit growth by six percentage points. For the year, the 53rd week lap negatively impacted system sales growth by one percentage point and core operating profit growth by two percentage points.
For the quarter, company-owned restaurant margins were 25.4%, down 10 basis points year-over-year. For the year, company-owned restaurant margins were 24.2%, a 20 basis point decrease year-over-year. The impact of lapping the 53rd week negatively impacted the change in company-owned restaurant margins by 40 basis points in the quarter and by 10 basis points for the year.

PIZZA HUT DIVISION

	Fourth-Quarter				Full-Year
			%/ppts Change				%/ppts Change
	2025	2024	Reported	Ex F/X	2025	2024	Reported	Ex F/X
Restaurants	19,974	20,225	(1)	NA	19,974	20,225	(1)	NA
System Sales ($MM)	3,473	3,617	(4)	(5)	12,794	13,108	(2)	(3)
Same-Store Sales Growth (%)	(1)	(1)	NM	NM	(1)	(4)	NM	NM
Franchise & Property Revenues ($MM)	166	176	(6)	(6)	602	622	(3)	(3)
Operating Profit ($MM)	101	95	+7	+6	340	373	(9)	(9)
Operating Margin (%)	33.3	32.4	0.9	0.9	33.6	37.0	(3.4)	(3.4)

	Fourth-Quarter (% Change)		Full-Year (% Change)
	International	U.S.	International	U.S.
System Sales Growth Ex F/X	+1	(11)	+2	(8)
System Sales Growth Ex F/X and Excluding Lapping 53rd Week	+1	(6)	+2	(7)
Same-Store Sales Growth	+1	(3)	+1	(5)

Pizza Hut Division opened 443 gross new restaurants during the quarter and 1,184 gross new restaurants across 65 countries for the year.
For the quarter, the 53rd week lap negatively impacted system sales growth by three percentage points and core operating profit growth by five percentage points. For the year, the 53rd week lap negatively impacted system sales growth by one percentage point and core operating profit growth by one percentage point.
Foreign currency translation favorably impacted operating profit by $1 million for the quarter and had a negligible impact for the year.

Pizza Hut Markets¹	Percent of Pizza Hut System Sales²	System Sales Growth Ex F/X and Excluding Lapping 53rd Week
Pizza Hut Markets¹	Percent of Pizza Hut System Sales²	Fourth-Quarter (% Change)	Full-Year (% Change)
United States	40%	(6)	(7)
China	19%	+2	+2
Asia	13%	Even	+3
Europe	12%	(5)	(3)
Latin America	7%	+7	Even
Middle East / Africa	4%	+6	+8
Canada	3%	Even	+2
India	2%	(3)	+2

THE HABIT BURGER GRILL DIVISION

The Habit Burger Grill Division opened 11 gross new restaurants during the quarter and 21 for the year.
The Habit Burger Grill Division system sales were flat for the quarter and grew 1% for the year excluding the lap of the 53rd week.
The Habit Burger Grill Division same-store sales were flat for the quarter and declined 1% for the year.

OTHER ITEMS

The Company's Board of Directors approved a dividend of $0.75 per share of common stock, an increase of 6%. The quarterly dividend will be distributed March 6, 2026 to shareholders of record at the close of business on February 20, 2026.
See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Special Items by financial statement line item including the impact of Special Items on General and administrative expenses.
Disclosures pertaining to outstanding debt in our Restricted Group capital structure will be provided at the time of the filing of the 2025 Form 10-K.

LONG-TERM GROWTH ALGORITHM

The Company targets the following long-term financial performance metrics, first announced in 2022, that it believes it can achieve over an extended period of time, on average:
- 5% Unit Growth
- 7% System Sales Growth, excluding F/X; and
- At least 8% Core Operating Profit Growth³

¹Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets.

²Reflects Full Year 2025.

³At this time, we are unable to forecast any Special Items or any impact from changes in F/X rates, and therefore cannot provide an estimate of Operating Profit Growth on a GAAP basis.

CONFERENCE CALL

Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 8:15 a.m. Eastern Time Wednesday, February 4, 2026. The number is 646/844-6383 in the U.S., 833/950-0062 in Canada and +1/646-844-6383 for international callers, conference ID 936175.

The call will be available for playback beginning at 10:00 a.m. Eastern Time February 4, 2026 through February 11, 2026. To access the playback, dial 929/458-6194 in the U.S. and +1/866-813-9403 internationally, conference ID 981204.

The webcast and the playback can be accessed via the website by visiting Yum! Brands' website, investors.yum.com/events-and-presentations and selecting "Q4 2025 Earnings Conference Call."

ADDITIONAL INFORMATION ONLINE

Quarter end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at investors.yum.com. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included within this release.

FORWARD-LOOKING STATEMENTS

This announcement may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "likely," "seek," "project," "model," "ongoing," "will," "should," "forecast," "outlook" or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved.

Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food- or beverage-borne illness concerns; adverse impacts of public health conditions or other catastrophic or unforeseen events; the success and financial stability of our concepts' franchisees; the success of our development strategy; anticipated benefits from past or potential future acquisitions, investments, other strategic transactions or initiatives, or our portfolio business model; the possibility that we may not be able to realize the anticipated benefits of a strategic review of the Pizza Hut brand or any potential transaction involving Pizza Hut; our significant exposure to the Chinese market; our global operations and related exposure to geopolitical instability, including the expansion or threatened expansion of restrictive trade policies and increasing anti-American sentiment; foreign currency risks and foreign exchange controls; our ability to protect the integrity or availability of IT systems or the security of confidential information and other cybersecurity risks; compliance with data privacy, data protection and emerging technology legal requirements; our ability to successfully and securely implement technology initiatives, including utilization of artificial intelligence; our increasing dependence on digital commerce and delivery platforms; the impact of social media; our ability to protect our trademarks or other intellectual property; shortages or interruptions in the availability and the delivery of food, equipment and other supplies; the loss of key personnel or failure to successfully transition senior management, labor shortages and increased labor costs, including as a result of state and local legislation related to wages and working conditions; changes in food prices and other operating costs; our corporate reputation, the value and perception of our brands and changes in consumer preferences such as wellness trends; evolving expectations and requirements with respect to social and environmental sustainability matters; adverse effects of severe weather and climate change; pending or future litigation and legal claims or proceedings; changes in, or non-compliance with, legal requirements; tax matters, including changes in tax rates or laws, impositions of new taxes, tax implications of our restructurings, or disagreements with taxing authorities; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and interest rate conditions; competition within the retail food industry; and risks relating to our level of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances.

You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results.

Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 63,000 restaurants in 155 countries and territories under the company's concepts – KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. The Company's KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-inspired food and pizza categories, respectively. Habit Burger & Grill is a fast casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2024, Yum! was named to the Dow Jones Sustainability Index North America and 3BL's list of 100 Best Corporate Citizens. In 2025, the Company was recognized among TIME magazine's list of Best Companies for Future Leaders. In addition, KFC, Taco Bell and Pizza Hut led Entrepreneur's Top Global Franchises 2024 list and were ranked in the first 25 of Entrepreneur's 2025 Franchise 500, with Taco Bell securing the No. 1 spot in North America for the fifth consecutive year.

Category: Earnings

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Analysts are invited to contact:

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Members of the media are invited to contact:

Lori Eberenz, Director, Public Relations, at 502/874-8200

Yum! Brands Reports Fourth-Quarter Results and Increases Dividend