YUM! Brands Q4 Earnings Fall Short, Revenues Surpass Estimates

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]