Yum! Brands (YUM) Q2 2026 earnings summary

Executive summary

• Excluding Pizza Hut, system sales grew 7% year-over-year, with 6% unit growth and 4% same-store sales growth in Q2 2026.

• Second-quarter GAAP EPS was $3.08, up 131% year-over-year; EPS excluding Special Items was $1.62, up 12% year-over-year.

• KFC achieved record first-half development, Taco Bell outperformed the QSR industry in same-store sales, and Habit posted 4% same-store sales growth.

• Digital sales excluding Pizza Hut exceeded $17 billion in the first half, up 25% year-over-year.

• Strategic agreements reached to sell Pizza Hut for $2.7 billion, with transactions expected to close in August.

Financial highlights

• Q2 core operating profit grew 8% year-over-year, despite a 3-point drag from refranchising gains and Habit store closure costs.

• Total revenues for the quarter were $2.17 billion, up 12% year-over-year.

• Net income was $853 million, up 128% year-over-year, driven by significant tax benefits related to the Pizza Hut sale.

• Digital system sales mix (excluding Pizza Hut) exceeded 60%, approaching $9 billion.

• 720 stores opened in Q2 (excluding Pizza Hut), with KFC contributing 660 new stores across 55 markets.

Outlook and guidance

• Guidance for full-year performance remains confident, but Taco Bell U.S. Q3 same-store sales growth is -2% quarter-to-date due to a recent industry-wide food safety issue.

• Taco Bell's Q3 equity store-level margins are expected to range between 19% and 21%.

• Long-term targets: 5% unit growth, 7% system sales growth (ex-F/X), and at least 8% Core Operating Profit growth.

• Steady improvement in Taco Bell sales trends observed post-issue, with a goal to return to pre-issue trajectory.