Yum! Brands (YUM) Q3 2026 earnings summary

Executive summary

• Excluding Pizza Hut from both periods, Q3 unit growth was 7%, system sales growth 3%, and Core Operating Profit growth 1%; YTD Core Operating Profit growth was 6%.

• Q3 GAAP EPS was $5.92; EPS excluding Special Items was $1.56 versus $1.58 a year earlier.

• Digital system sales exceeded $9B, with digital mix at 64%.

Financial highlights

• Q3 revenue rose 4% to $2.054B; YTD revenue increased 10% to $6.282B.

• Q3 net income was $1.623B versus $397M; YTD net income was $2.908B versus $1.024B, including the Pizza Hut divestiture gain.

• Reported operating profit increased 248% in Q3 to $2.317B and 97% YTD to $3.616B, including the $1.683B pre-tax divestiture gain.

• EPS excluding Special Items was $1.56 in Q3, down 1%; YTD EPS excluding Special Items rose 8% to $4.68.

• Ex-special G&A was $235M, up 8% YoY; 3 percentage points of the increase reflected Global Leadership Summit and Pizza Hut transition costs.

Outlook and guidance

• Long-term targets, on average over an extended period: 5% unit growth, 7% system sales growth excluding FX, and at least 8% Core Operating Profit growth.

• FY unit growth excluding Pizza Hut is expected to exceed the 5% long-term algorithm; 2026 is expected to be a record year for KFC gross openings.

• Taco Bell U.S. same-store sales were up ~1% QTD and ~3% over the trailing four weeks; Q4 restaurant-level margin guidance is 21.5%-23.5%.

• Q4 ex-special G&A guidance is $285M-$305M, including ~$2.5M per month of Pizza Hut corporate costs; transition fees are expected to taper by mid-2027.

• Q4 net interest expense is expected at $130M-$140M, excluding financing activity; $1.6B of debt maturities are expected to be addressed by H1 2027.