Yum Brands exceeds third quarter expectations

Core Insights - Yum Brands reported Q3 2025 revenue of $1.98 billion, an 8.2% year-over-year increase, surpassing Wall Street forecasts by approximately $10 million [1] - Global system sales rose by 5%, driven by Taco Bell's 9% growth and KFC's 6% increase [1][6] - The company achieved record digital sales, with digital sales accounting for about 60% of total sales [2][6] Financial Performance - KFC U.S. same-store sales increased by 2%, marking its first positive quarter in six quarters [6] - Taco Bell U.S. same-store sales grew by 7% [6] - Pizza Hut U.S. same-store sales fell by 6%, with system sales declining by 7% [6] Strategic Initiatives - New CEO Chris Turner outlined three priorities for growth: staying relevant with younger consumers, leveraging global scale to enhance franchisee economics, and expanding the AI-powered platform Byte [2] - Yum Brands is exploring strategic options for the Pizza Hut brand due to eight consecutive quarters of same-store sales declines [3][4] - The intent behind exploring options for Pizza Hut is to maximize value for shareholders and help the brand reach its full potential [3]