Taco Bell was the standout performer, while Pizza Hut remained the weakest part of the company's portfolio
Yum Brands $YUM reported first-quarter adjusted earnings per share of $1.50, a 15% increase from a year earlier. Analysts had projected $1.38 per share, according to CNBC.
Total revenues rose 15% to $2.06 billion. GAAP net income climbed to $432 million, or $1.55 per share, from $253 million, or 90 cents per share, in the same period a year earlier.
Taco Bell was the standout performer, with its same-store sales coming in at 8% — well above the 5.6% analysts had forecast, according to CNBC. U.S. system sales for the chain rose 10%, and operating profit increased 16%. Digital system sales across Yum approached $11 billion, with a record mix of 63%.
KFC posted same-store sales growth of 2% and unit growth of 7%, adding 648 gross new restaurants across 45 countries. Operating profit at KFC rose 16% on a reported basis. Domestically, KFC's system sales contracted 2% over the period.
Pizza Hut remained the weakest part of the portfolio. Global same-store sales were flat, with U.S. same-store sales down 4% and operating profit falling 14%. Yum said earlier this year it would explore strategic options for the chain. During the quarter, the company recorded about $37 million in charges tied to that review, primarily third-party advising costs. Apollo Global Management and Sycamore Partners are among the private equity firms that have emerged as potential acquirers, according to CNBC.
Yum also received about $44 million, net of legal expenses, from a credit card interchange fee litigation settlement, which the company recorded as a special item.
"Taco Bell delivered an outstanding 8% same-store sales growth, meaningfully ahead of the [quick-service restaurant] industry, building off a very strong Q1 same-store sales growth rate in 2025," CEO Chris Turner said in a statement. "Yum! is incredibly well positioned to sustain sales momentum thanks to strong global consumer appeal for our brands, long-term consumption tailwinds, and our tech and AI capabilities."
Worldwide system sales grew 6% excluding foreign currency translation, and unit count increased 5% with 1,030 gross new locations added during the quarter. Excluding Pizza Hut, system sales grew 7% excluding currency effects and core operating profit grew 10%.
Yum operates more than 63,000 restaurants in 155 countries and territories under the KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill brands.
