Core Insights - Pizza Hut is closing 250 locations, representing about 3% of its US footprint, as part of a strategic review by its parent company, Yum! Brands, which may consider selling the chain in the future [1][2] - The closures are part of a turnaround strategy named "Hut Forward," which includes marketing investments and technology upgrades [2] - Pizza Hut has faced challenges in competing with rivals like Domino's, with a 5% drop in US same-store sales in 2025 and a 3% decline in the fourth quarter, indicating that turnaround efforts have not yet been effective [3][6] Company Performance - Taco Bell has shown strong performance with a 7% increase in US same-store sales in the fourth quarter, attributed to new menu items appealing to a diverse customer base [6] - KFC has also shown signs of improvement, with a 1% increase in US same-store sales in the fourth quarter, as it attempts to catch up with competitors [6][7]

Core Insights - Yum! Brands, Inc. reported mixed quarterly results with earnings falling short of expectations despite an increase in revenue [1] - Strength in Taco Bell and KFC contributed to systemwide growth and unit expansion, although restaurant margins decreased year over year [1] Quarterly Metrics - Worldwide system sales increased by 5% excluding currency impacts and the extra 53rd week comparison, driven by Taco Bell's 8% growth and KFC's 6% growth [2] - Operating profit for the quarter was $738 million, up from $657 million a year ago, while the company restaurant margin decreased to 16% from 17.9% year over year [2] Unit Expansion - The company opened 1,814 gross new units, achieving a year-over-year unit growth of 3%, with digital system sales exceeding $11 billion, accounting for nearly 60% of total sales [3] - KFC Division opened 1,132 new restaurants, while Taco Bell Division added 228 new restaurants during the quarter [3] - Yum! Brands ended the quarter with cash and equivalents totaling $709 million [3] Management Commentary - The CFO highlighted strong topline results, double-digit profit growth, a significant Taco Bell store acquisition, and a strategic review for the Pizza Hut brand, expressing optimism for growth opportunities ahead [4] Dividend Announcement - The company approved a dividend of 75 cents per share, marking a 6% increase, with distribution scheduled for March 6 [5] Long-term Outlook - Yum! Brands reaffirmed its long-term growth targets, aiming for 5% unit growth and 7% system sales growth, excluding foreign exchange, along with an average core operating profit growth of at least 8% over time [6]

Financial Performance - Yum Brands reported revenue of $2.51 billion for the quarter ended December 2025, reflecting a 6.4% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $1.73, up from $1.61 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.47 billion by 1.99%, while the EPS fell short of the consensus estimate of $1.78 by 2.62% [1] Key Metrics - Total restaurants for Taco Bell Division reached 9,030, surpassing the average estimate of 8,984 [4] - KFC Division had 33,897 total restaurants, slightly below the average estimate of 33,899 [4] - Pizza Hut Division reported 19,974 total restaurants, which was below the average estimate of 20,190 [4] Same-Store Sales and Revenue Contributions - Taco Bell Division's system same-store sales increased by 7% year-over-year, exceeding the average estimate of 5.8% [4] - Company sales for Taco Bell Division were $971 million, above the estimated $948.02 million, representing a 9.7% year-over-year increase [4] - Franchise and property revenues totaled $997 million, exceeding the average estimate of $987.03 million, marking a 5.5% year-over-year increase [4] Division-Specific Performance - Franchise contributions for advertising and other services in Taco Bell Division were $240 million, surpassing the estimated $232.19 million, with a 3.9% year-over-year increase [4] - KFC Division's franchise contributions for advertising and other services were $201 million, slightly above the average estimate of $200.77 million, reflecting an 8.1% year-over-year increase [4] - Habit Burger Grill Division reported company sales of $170 million, below the estimated $176.31 million, indicating a 10.1% year-over-year decline [4]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - YUM! Brands, Inc. reported fourth-quarter 2025 results with earnings missing estimates but revenues exceeding expectations, both metrics showing year-over-year growth [2][5][10] Financial Performance - Adjusted earnings per share (EPS) for Q4 2025 were $1.73, below the Zacks Consensus Estimate of $1.78, but up 8% from the prior year [5] - Quarterly revenues reached $2.51 billion, surpassing the consensus mark of $2.47 billion, and increased by 6% year over year [5][10] - Global system sales rose 5% on a constant-currency basis, with Taco Bell leading at 8% growth and KFC at 6%, while Pizza Hut saw a decline of 2% [6][10] Divisional Performance - KFC revenues totaled $1,041 million, an 8% increase year over year, with same-store sales rising 3% [7] - Pizza Hut revenues were $303 million, up 3% year over year, with same-store sales decreasing by 1% [8] - Taco Bell generated $997 million in revenues, a 7% increase, with same-store sales growth of 7% [9] - Habit Burger Grill revenues were $175 million, down from $192 million year over year, with flat same-store sales [11] Strategic Focus - CEO Chris Turner emphasized the company's long-term "Raise the Bar" strategy aimed at sustaining growth across its portfolio [4] - YUM! Brands reaffirmed its long-term growth targets, aiming for approximately 5% annual unit growth, around 7% yearly system sales growth, and at least 8% annual growth in core operating profit [13] Financial Position - As of December 31, 2025, cash and cash equivalents were $709 million, up from $616 million at the end of 2024, while long-term debt increased to $11.9 billion from $11.3 billion [12]

分组1 - Yum Brands reported quarterly earnings of $1.73 per share, missing the Zacks Consensus Estimate of $1.78 per share, but showing an increase from $1.61 per share a year ago, resulting in an earnings surprise of -2.62% [1] - The company posted revenues of $2.51 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.99%, and compared to year-ago revenues of $2.36 billion [2] - Yum shares have increased approximately 4.9% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.40 on revenues of $1.97 billion, and for the current fiscal year, it is $6.68 on revenues of $8.89 billion [7] - The Zacks Industry Rank indicates that the Retail - Restaurants sector is currently in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - In Q4, the company achieved a 5% growth in system sales, driven by 3% unit growth and 3% same-store sales growth [19] - Digital sales reached over $11 billion, growing 25% year-over-year, raising the digital mix to nearly 60% [20] - For the full year, system sales grew 5%, with Taco Bell at 8% and KFC at 6% [20] - Q4 core operating profit grew 11%, and the full-year core operating profit increased by 7% [22] - Excluding Pizza Hut, core operating profit grew 10% [22] Business Line Data and Key Metrics Changes - Taco Bell reported 7% same-store sales growth, while KFC achieved 6% system sales growth [4][11] - Taco Bell's U.S. restaurant-level margins were 25.7%, a 50 basis points expansion year-over-year [21] - KFC's Q4 restaurant-level margins were 12.7%, a 60 basis points expansion year-over-year [21] - KFC opened over 1,100 units in Q4 and nearly 3,000 units for the year, marking a record pace [22][23] - Taco Bell opened 228 new units in Q4, with a target of reaching at least 10,000 units in North America [26] Market Data and Key Metrics Changes - KFC's largest equity estate, the UK, saw a 10% increase in same-store sales in Q4 [11] - Taco Bell International achieved 5% same-store sales growth, with standout performance in Canada, the U.K., and Spain [16] - Pizza Hut experienced a 1% same-store sales decline globally, but saw growth in Pizza Hut International [30] Company Strategy and Development Direction - The company aims to raise the bar with three core priorities: enhancing average unit volumes, accelerating restaurant-level economics for franchisees, and leveraging technology through Byte [8] - Taco Bell has set ambitious goals for 2030, including reaching approximately $3 million in U.S. average unit volume and expanding to 3,000 international stores [9] - The company is focused on digital capabilities, with digital sales growing significantly and expected to drive nearly one-quarter of Taco Bell's average unit volume growth in 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the ability to exceed long-term growth algorithms, particularly in Taco Bell and KFC [39][43] - The strategic review of Pizza Hut is ongoing, with expectations for strong gross openings globally despite targeted closures of underperforming units [32][36] - Management highlighted the importance of franchise partnerships and the potential for growth in under-penetrated markets like India and Brazil [24][25] Other Important Information - The company returned approximately $1.35 billion to shareholders in 2025 through dividends and share buybacks [33] - The capital priorities include maximizing shareholder value, maintaining a strong balance sheet, and returning excess cash to shareholders [33] Q&A Session Summary Question: Can you elaborate on opportunities to accelerate growth in Taco Bell and KFC? - Management noted strong momentum in both brands, with record unit openings and a focus on improving restaurant economics to sustain growth [39] Question: What are the prospects for KFC global development and franchise revenue? - Management emphasized strong paybacks in various markets and a focus on unlocking growth potential in under-penetrated regions [46] Question: How is Taco Bell's comp growth driven by traffic and demographics? - Management reported strong transaction growth across all income bands, with increased penetration among higher-income consumers and families [57] Question: What is the current adoption status of the Byte initiative in the U.S.? - Management indicated high penetration of Byte in Taco Bell U.S. and plans for further expansion into international markets [62] Question: What are the long-term growth expectations beyond Pizza Hut? - Management is focused on completing the strategic review of Pizza Hut while driving performance in Taco Bell and KFC [71]

Financial Data and Key Metrics Changes - In Q4, the company achieved a 5% growth in system sales, driven by 3% unit growth and 3% same-store sales growth [19] - Digital sales reached over $11 billion, growing 25% year-over-year, raising the digital mix to nearly 60% [20] - For the full year, system sales grew 5%, with Taco Bell at 8% and KFC at 6% [20] - Q4 core operating profit grew 11%, with ex-special EPS at $1.73 [22] - Full-year Yum ex-special EPS was $6.05, up 10% [22] Business Line Data and Key Metrics Changes - Taco Bell delivered 7% same-store sales growth, while KFC achieved 6% system sales growth [4][11] - Taco Bell U.S. restaurant-level margins expanded to 25.7%, while KFC's margins were at 12.7% [21] - KFC opened over 1,100 units in Q4 and nearly 3,000 units for the year, marking record unit growth [22][23] - Taco Bell opened 228 new units in Q4, with a target of reaching at least 10,000 units in North America [26] Market Data and Key Metrics Changes - KFC saw strong performance in the UK, with a 10% increase in same-store sales in Q4 [11] - Taco Bell International achieved 5% same-store sales growth, with standout performance in Canada, the U.K., and Spain [16] - Pizza Hut experienced a 1% same-store sales decline globally, but saw growth in Pizza Hut International [30] Company Strategy and Development Direction - The company aims to raise the bar with three core priorities: enhancing average unit volumes, improving restaurant-level economics for franchisees, and leveraging technology through Byte [8] - Taco Bell has set ambitious goals for 2030, including reaching approximately $3 million in U.S. average unit volume and expanding to 3,000 international stores [9] - The company is focused on digital capabilities, with digital sales growing significantly and expected to drive nearly one-quarter of Taco Bell's average unit volume growth in 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the ability to exceed long-term growth algorithms, particularly in Taco Bell and KFC [39][43] - The strategic review of Pizza Hut is progressing, with expectations for strong gross openings globally despite targeted closures of underperforming units [32][36] - Management emphasized the importance of franchise partnerships and the potential for growth in underpenetrated markets like India and Brazil [24][25] Other Important Information - The company returned approximately $1.35 billion to shareholders in 2025 through dividends and share buybacks [33] - The capital priorities include maximizing shareholder value, maintaining a strong balance sheet, and returning excess cash to shareholders [33] Q&A Session Summary Question: Opportunities to accelerate growth in Taco Bell and KFC - Management highlighted strong momentum in both brands, with KFC achieving record unit openings and Taco Bell maintaining strong same-store sales growth [39] Question: KFC global development and franchise revenue - Management discussed the focus on improving paybacks in various markets and the potential for higher franchise revenue as unit growth accelerates [46] Question: Unit development growth rates for Taco Bell and KFC - Management expressed confidence in maintaining or accelerating unit development growth rates, particularly in KFC and Taco Bell [50][52] Question: Taco Bell's comp growth and demographics - Management noted strong transaction growth across all income bands, with increased penetration among higher-income consumers and families [57] Question: Byte initiative adoption and technology-related G&A - Management confirmed high penetration of Byte in the U.S. and plans for further international expansion, while also managing technology investments prudently [62][64] Question: Future of Pizza Hut and long-term growth potential - Management emphasized the focus on driving performance across all brands while completing the strategic review of Pizza Hut [71][72]

Financial Data and Key Metrics Changes - In Q4, Yum! Brands achieved a 5% growth in system sales, driven by 3% unit growth and 3% same-store sales growth [18] - Digital sales reached over $11 billion, growing 25% year-over-year, with digital mix increasing by 9 points to nearly 60% [18] - For the full year, core operating profit grew 7%, with an increase of 10% excluding the Pizza Hut division [20] Business Line Data and Key Metrics Changes - Taco Bell reported a 7% same-store sales growth, outperforming the QSR industry, and achieved 10% core operating profit growth [4] - KFC delivered 6% system sales growth and a 10% core operating profit increase, with significant growth in the UK and Middle East markets [11] - Taco Bell U.S. achieved restaurant-level margins of 25.7%, while KFC's margins were 12.7% in Q4, reflecting improvements in both brands [19] Market Data and Key Metrics Changes - Taco Bell International saw 5% same-store sales growth, with notable performance in Canada, the U.K., and Spain [15] - KFC's largest equity estate, the UK, experienced a 10% increase in same-store sales in Q4 [11] - Pizza Hut International reported a 1% same-store sales increase, with strength in the Middle East, Latin America, and Asia [29] Company Strategy and Development Direction - The company aims to raise the bar with three core priorities: enhancing average unit volumes, improving restaurant-level economics for franchisees, and maximizing the potential of the Byte technology platform [8][9] - Taco Bell has set ambitious goals for 2030, including reaching approximately $3 million in U.S. average unit volume and expanding to 3,000 international stores [9] - The strategic review of Pizza Hut is ongoing, with a focus on strengthening near-term results and aligning stakeholders on a targeted program [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum heading into 2026, highlighting strong paybacks and unit development in KFC and Taco Bell [37][41] - The company is focused on leveraging its scale and technology to enhance franchisee profitability and drive growth [46][70] - Management emphasized the importance of maintaining relevance with consumers and improving restaurant economics as key drivers for future growth [70] Other Important Information - The company opened over 1,800 new units in Q4 and more than 4,550 new units for the year, with KFC leading unit growth [21] - Yum! Brands returned approximately $1.35 billion to shareholders in 2025 through dividends and share buybacks [31] - The company is committed to expanding access to education and employment opportunities, impacting over 400,000 people in the past year [17] Q&A Session Summary Question: Opportunities to accelerate growth in Taco Bell and KFC - Management highlighted strong momentum in both brands, with record unit openings in KFC and continued same-store sales growth in Taco Bell [37][38] Question: KFC global development and franchise revenue - Management reassured that KFC is focused on improving paybacks and unlocking growth in under-penetrated markets, with a strong emphasis on franchisee profitability [45][46] Question: Taco Bell's comp growth and demographics - Taco Bell's growth was driven by increased transaction frequency across various demographics, including higher-income consumers and families [53][55] Question: Byte initiative adoption and international expansion - Management confirmed that Byte is actively used in the U.S. and plans to expand its deployment internationally, focusing on thoughtful implementation [58][64] Question: Future of Pizza Hut and unit closures - Management indicated that the strategic review of Pizza Hut is ongoing, with targeted closures planned as part of the Hut Forward program [75]

Core Insights - Yum Brands reported a widening performance gap across its restaurant portfolio in the final quarter of the year, indicating varying levels of demand and growth among its brands [1] Group 1: Brand Performance - Taco Bell experienced strong demand, contributing positively to Yum Brands' overall performance [1] - KFC showed steady international growth, further supporting the company's revenue [1]