Yum! Brands Q4 Earnings Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy YUM?
Source: seekingalpha
- Earnings Performance: Yum! Brands reported a Q4 non-GAAP EPS of $1.73, missing estimates by $0.03, while revenue reached $2.51 billion, a 6.4% year-over-year increase that beat expectations by $60 million, showcasing resilience in revenue growth.
- Same-Store Sales Growth: The same-store sales growth rate was 7%, indicating strong customer retention amid competitive pressures, particularly with KFC opening over 1,100 new stores in Q4 and nearly 3,000 planned for 2025, further solidifying its market position.
- Profitability Improvement: Q4 GAAP operating profit grew by 12%, and core operating profit (excluding the impact of the 53rd week) increased by 11%, reflecting ongoing improvements in cost control and operational efficiency, enhancing the sustainability of future profits.
- Annual Performance Review: Full-year GAAP EPS was $5.55, with EPS excluding special items at $6.05, marking a 10% increase, which reflects steady improvements in overall financial health and profitability despite facing debt pressures.
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Analyst Views on YUM
Wall Street analysts forecast YUM stock price to rise
21 Analyst Rating
7 Buy
14 Hold
0 Sell
Moderate Buy
Current: 163.280
Low
145.00
Averages
164.33
High
185.00
Current: 163.280
Low
145.00
Averages
164.33
High
185.00
About YUM
YUM! Brands, Inc. and its subsidiaries franchise or operate a system of approximately 61,000 restaurants in 155 countries and territories under the concepts of KFC, Taco Bell, Pizza Hut and The Habit Burger Grill. It consists of four operating segments: The KFC Division, which includes its worldwide operations of the KFC concept; The Taco Bell Division, which includes its worldwide operations of the Taco Bell concept; The Pizza Hut Division, which includes its worldwide operations of the Pizza Hut concept; and The Habit Burger Grill Division, which includes its worldwide operations of the Habit Burger Grill concept. It develops, operates, or franchises a system of both traditional and non-traditional restaurants. KFC restaurants offer fried and non-fried chicken products. Taco Bell offers Mexican-style food products. Pizza Hut specializes in the sale of ready-to-eat pizza products. The Habit Burger Grill offers chargrilled burgers and sandwiches made-to-order over an open flame.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Brand Collaboration Highlights: The campaign features social media spots showcasing a generational showdown between Nick and Howie, emphasizing emotional connections between the brand and consumers, thereby enhancing brand image and market impact.
- Global Influence: As a leading global pizza brand with nearly 20,000 restaurants in over 110 markets, Pizza Hut's initiative not only strengthens its market presence but also demonstrates its ongoing leadership in digital innovation and technology.
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- Store Closure Plan: Pizza Hut plans to close approximately 250 underperforming U.S. restaurants in the first half of 2026 as part of Yum! Brands' strategic review aimed at improving near-term performance.
- Strategic Review Progress: Yum disclosed this plan during its fiscal 2025 fourth-quarter earnings call, emphasizing that the review process is ongoing and expected to be completed this year, although specific outcomes were not provided.
- Same-Store Sales Performance: Pizza Hut reported a 1% decline in same-store sales globally for both the fourth quarter and the full year, while international same-store sales rose 1%, indicating strong performance in the Middle East, Latin America, and Asia.
- Long-Term Growth Targets: Yum reaffirmed its long-term growth algorithm, targeting 5% unit growth and 7% system sales growth, while also aiming for at least 8% core operating profit growth over time, despite a projected decline in unit count in the short term.
See More
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- Profit Outlook Decline: The company anticipates a nearly 15% drop in Pizza Hut's first-quarter core operating profit, primarily due to the impact of one-time marketing support investments that will negatively affect franchise and property expenses.
- Increased Competitive Pressure: Amid a consumer slowdown in the overall restaurant sector, Pizza Hut has struggled to keep pace with competitors, while KFC and Taco Bell have attracted more customers through value meals and new menu options.
- Market Sentiment Shift: According to Stocktwits data, retail sentiment on Yum Brands has shifted from ‘extremely bearish’ a week ago to ‘bullish’, reflecting investor confidence in KFC's international strength and Taco Bell's dominance in the U.S. market.
See More
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- Significant Membership Growth: Yum China's digital loyalty program has surpassed 590 million members, representing over 40% of the country's population, showcasing its strong market appeal and competitive advantage.
- Sales Channel Transformation: With 55% of sales coming from loyalty members, the company has successfully shifted consumers towards digital purchasing, thereby enhancing overall sales efficiency.
- New Technology Implementation: The AI ordering assistant launched by Yum China has been rolled out nationwide, attracting 2 million users, particularly excelling in breakfast and coffee orders, which further enhances customer experience and satisfaction.
- Optimistic Market Outlook: The loyalty program market in China is projected to reach nearly $33 billion by 2029, and Yum China's ongoing expansion and innovation position it to lead in this rapidly growing sector.
See More
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- Store Closure Initiative: Yum! Brands announced the closure of approximately 250 underperforming Pizza Hut locations as part of a portfolio cleanup, focusing on weaker-performing outlets among the total 19,974 globally, aiming to enhance overall operational efficiency.
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- Future Strategic Plans: The
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