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Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.58Last Year’s EPS
1.44Same Quarter Last Year
Moderate Buy
Based on 16 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted broad company momentum: solid top-line growth, strong unit development, notable Taco Bell and KFC performance, accelerating digital mix (~63% digital) and promising innovation/AI deployments. Profitability excluding Pizza Hut grew strongly (core operating profit +10% ex-Pizza Hut) and management signaled improved margin outlooks and disciplined capital allocation (share buybacks, manageable capex). Offsetting risks include ongoing inflationary pressure (notably beef impacting The Habit), increased G&A and franchise investments, regional supply-chain impacts tied to the Middle East conflict, and a strategic review and investment drag at Pizza Hut. Overall, the positive operational and financial metrics substantially outweigh the challenges described, with management expressing confidence in execution and growth levers.Company Guidance
Solid Top-Line and Store Growth
Q1 system sales grew 6%, new units grew 5%, and global same-store sales were up 3%. The company opened 130 new stores in the quarter.
Taco Bell Outperformance and Margin Expansion
Taco Bell U.S. reported 8% same-store sales growth (8% in Q1) and 18% on a 2-year basis. Q1 U.S. restaurant-level margins reached 23.9%; full-year Taco Bell U.S. restaurant-level margin guidance was raised to 24.5%–25.5%. Loyalty sales grew ~30% YoY and digital mix for Taco Bell U.S. approaches ~80% in-market references.
KFC Growth and Unit Development
KFC delivered 6% system sales growth, 7% unit growth in Q1 with record Q1 gross builds and added stores across 45 countries. KFC restaurant-level margins were 10.3%, up 100 basis points year-over-year (including a 240 bps increase in U.K. margins).
Digital Scale and Byte Platform Momentum
Digital sales approached $11 billion and digital mix reached a new high of 63%. Byte by Yum! expansion continued (Taco Bell U.K. rolled out both digital ordering and Smart Ops bundles) and larger rollouts for KFC U.K./Australia are on track. AI pilots (e.g., drive-thru A/B testing) were piloted with plans to scale.
Strong International Taco Bell Performance
Taco Bell international system sales rose 16% in Q1. Two-year stacked same-store sales growth examples: U.K. +23%, Canada +18%, India +45%. Taco Bell opened 30 gross units in the quarter (14 U.S., 16 international).
Profitability Excluding Pizza Hut
Excluding Pizza Hut, Yum! system sales grew 7%, G&A grew 3% and core operating profit grew 10% year-over-year, demonstrating underlying profit momentum outside of Pizza Hut.
Capital Allocation and Liquidity
Gross capital expenditures were $75 million for the quarter. Net leverage ended at approximately 3.8x. The company repurchased ~1.2 million shares for $185 million and cited an operating cash flow run rate of ~$1.8 billion (and a combined run-rate cash generation >$2.5 billion when including debt capacity).
Beverage and Innovation Traction
Taco Bell pilots (Live Mas Cafe) in 38 restaurants and proprietary beverage innovation drove strong interest: 43% of Taco Bell's specialty beverage sales are stand-alone without food. KFC's Quench beverage platform is scaling and delivering attractive refit ROI in the U.K. (paybacks under 3 years).
Marketing and Cultural Momentum
Taco Bell's Live Mas Live generated ~60% higher social/media mentions year-over-year. KFC U.K.'s 'Pickle Mania' became the brand's most successful limited-time offer in U.K. history, and other culturally relevant innovations produced double-digit weekly growth in select markets.
Franchise Economics and Build Efficiency Initiatives
Examples of improved unit economics include a prefabricated restaurant format used by a franchisee in Chile that reduces on-site construction time by ~17 weeks vs. traditional builds and innovation/supply-chain initiatives targeted at reducing restaurant build costs.
YUM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
YUM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $155.70 | $159.06 | +2.16% |
Feb 04, 2026 | $157.24 | $158.06 | +0.52% |
Sep 30, 2025 | $151.77 | $149.86 | -1.26% |
Aug 06, 2025 | $136.87 | $138.67 | +1.32% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Yum! Brands (YUM) report earnings?
Yum! Brands (YUM) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Yum! Brands (YUM) earnings time?
Yum! Brands (YUM) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is YUM EPS forecast?
YUM EPS forecast for the fiscal quarter 2026 (Q2) is 1.58.
