Yum! Brands (NYSE:YUM) Posts Earnings Results, Misses Estimates By $0.03 EPS

Yum! Brands (NYSE:YUM) posted its quarterly earnings results on Wednesday. The restaurant operator reported $1.73 earnings per share for the quarter, missing the consensus estimate of $1.76 by ($0.03), Briefing.com reports. The firm had revenue of $2.51 billion for the quarter, compared to the consensus estimate of $2.45 billion. Yum! Brands had a negative return on equity of 22.42% and a net margin of 18.98%.The firm’s revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.61 EPS.

Here are the key takeaways from Yum! Brands’ conference call:

• Yum reported strong momentum at its two largest brands — Taco Bell gained share with ~7% same-store sales growth and KFC delivered record international openings, with both brands driving ~10% divisional core operating profit growth.
• Aggressive unit development and franchise scale — the company opened ~4,550 restaurants in 2025 (KFC ~3,000), expects >5% net new unit growth ex-Pizza Hut, and highlighted franchise partner consolidation (Devyani/Sapphire, Carlyle) as a catalyst for faster international expansion.
• Digital and technology are key growth levers — digital sales topped ~$11 billion (up ~25%) with digital mix near 60%, and the Byte platform is live in ~38,000 restaurants, delivering operational improvements (fewer aggregator failures, reduced stock-outs) and expected to drive further AUV and margin gains.
• Pizza Hut remains a near-term drag and is under strategic review — global same-store sales were down ~1%, the company plans ~250 targeted U.S. closures in H1 2026 and expects Pizza Hut Q1 core operating profit to be down ~15% due to one?time Hut Forward investments, leaving outcome and timing uncertain.

Yum! Brands Trading Up 0.7%

Shares of YUM traded up $1.15 during trading hours on Friday, reaching $162.24. 118,214 shares of the company’s stock traded hands, compared to its average volume of 2,151,340. Yum! Brands has a 12 month low of $137.33 and a 12 month high of $163.60. The stock has a market cap of $45.05 billion, a PE ratio of 29.25, a price-to-earnings-growth ratio of 2.20 and a beta of 0.66. The firm’s 50 day simple moving average is $152.98 and its 200-day simple moving average is $149.00.

Yum! Brands Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Friday, February 20th will be issued a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Friday, February 20th. This is an increase from Yum! Brands’s previous quarterly dividend of $0.71. Yum! Brands’s payout ratio is 54.05%.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Citigroup raised their price objective on shares of Yum! Brands from $170.00 to $171.00 and gave the stock a “neutral” rating in a report on Thursday. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $177.00 price target on shares of Yum! Brands in a report on Wednesday, November 5th. Guggenheim decreased their price objective on Yum! Brands from $167.00 to $160.00 and set a “buy” rating on the stock in a research note on Tuesday, October 28th. Evercore ISI raised Yum! Brands from an “in-line” rating to an “outperform” rating and increased their price objective for the stock from $165.00 to $180.00 in a report on Wednesday, November 5th. Finally, TD Cowen reaffirmed a “buy” rating and set a $180.00 target price on shares of Yum! Brands in a report on Thursday. Thirteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Yum! Brands presently has a consensus rating of “Moderate Buy” and a consensus price target of $172.50.

Key Stories Impacting Yum! Brands

Here are the key news stories impacting Yum! Brands this week:

• Positive Sentiment: Revenue beat driven by Taco Bell strength and KFC international unit growth — Taco Bell’s momentum and overseas KFC expansion helped Yum beat revenue expectations despite an EPS miss, supporting the stock. Earnings Breakdown: Yum Brands Q4
• Positive Sentiment: Dividend hike signals confidence and returns cash to shareholders — Yum raised its quarterly dividend to $0.75 (up from $0.71), which investors typically view as supportive for the share price. Taco Bell, KFC Parent Yum! Brands Hikes Dividend Despite Margin Squeeze
• Positive Sentiment: Bullish analyst stance from TD Cowen — TD Cowen reaffirmed a Buy rating with a $180 price target, highlighting Taco Bell momentum and potential re-rating after any Pizza Hut divestiture. Buy Rating on Yum! Brands Driven by Taco Bell Momentum…
• Positive Sentiment: Byte by Yum AI platform starting to add operational benefits — Adoption of proprietary AI/SaaS tools for franchisees may help margins and same-store sales over time. Yum Brands Battles Rival Restaurants With Proprietary AI
• Neutral Sentiment: Citigroup raises price target to $171 but keeps a Neutral rating — modestly higher PT reflects mixed near-term outlook; not a clear directional catalyst. Citigroup raises YUM price target to $171 (neutral)
• Neutral Sentiment: Wells Fargo nudges its target to $160 with an Equal Weight rating — another cautious view that tempers upside expectations. Wells Fargo raises target to $160 (equal weight)
• Negative Sentiment: Pizza Hut to close ~250 U.S. locations and Yum is conducting a formal review that could include selling the brand — closures reflect weak U.S. comp sales (-5% last year) and could pressure near-term results and investor sentiment around Yum’s pizza portfolio. Pizza Hut closing 250 US stores as parent company considers selling the brand
• Negative Sentiment: U.S. Pizza Hut weakness is a recurring drag and prompts strategic uncertainty — widespread media coverage and analyst concern about store closures and brand-sale talk could weigh on Yum’s multiple until the review concludes. Pizza Hut Is Shutting 250 Restaurants. Here’s Why.
• Negative Sentiment: Analysts warn Pizza Hut closures may depress near-term earnings — closures and potential restructuring/sale costs could squeeze margins before any longer-term benefit. Analysts weigh Pizza Hut closing 250 locations

Insider Activity at Yum! Brands

In other news, COO Tracy L. Skeans sold 24,332 shares of the firm’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $149.10, for a total transaction of $3,627,901.20. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Aaron Powell sold 2,790 shares of Yum! Brands stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $150.48, for a total transaction of $419,839.20. Following the sale, the chief executive officer directly owned 26,650 shares of the company’s stock, valued at $4,010,292. This represents a 9.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 27,398 shares of company stock valued at $4,090,015 over the last three months. 0.33% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Yum! Brands

Large investors have recently added to or reduced their stakes in the company. Wiser Advisor Group LLC purchased a new position in shares of Yum! Brands in the 3rd quarter worth about $28,000. Sunbelt Securities Inc. lifted its position in Yum! Brands by 49.5% in the 3rd quarter. Sunbelt Securities Inc. now owns 290 shares of the restaurant operator’s stock worth $44,000 after buying an additional 96 shares during the last quarter. Kelleher Financial Advisors bought a new stake in Yum! Brands in the 3rd quarter worth approximately $66,000. State of Wyoming boosted its stake in Yum! Brands by 52.2% in the second quarter. State of Wyoming now owns 770 shares of the restaurant operator’s stock worth $114,000 after buying an additional 264 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new position in Yum! Brands during the second quarter valued at approximately $122,000. Hedge funds and other institutional investors own 82.37% of the company’s stock.

About Yum! Brands

Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company’s principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company’s operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.