Core Insights - YUM! Brands, Inc. reported strong third-quarter 2025 results, with earnings and revenues exceeding Zacks Consensus Estimates, leading to a 3.2% increase in share price during pre-market trading [1][9] Financial Performance - Adjusted earnings per share (EPS) for Q3 2025 were $1.58, surpassing the Zacks Consensus Estimate of $1.47, reflecting a 15% year-over-year increase [3][9] - Quarterly revenues reached $1.98 billion, exceeding the consensus mark of $1.96 billion, and showing an 8% increase year over year [3][9] - Worldwide system sales, excluding foreign currency translation, increased by 5% year over year, with Taco Bell rising 9% and KFC increasing 6%, while Pizza Hut experienced a 1% decline [4][9] Divisional Performance - KFC revenues totaled $879 million, up 12% from the prior-year quarter, with comparable sales rising 3% [5][6] - Pizza Hut revenues were $240 million, a 1% increase year over year, but comparable sales decreased by 1% [6][9] - Taco Bell generated $730 million in revenues, a 10% increase from the previous year, with comparable sales growing by 7% [7][9] - Habit Burger Grill revenues amounted to $134 million, slightly down from $137 million in the prior-year quarter, with comparable sales growing by 1% [8] Strategic Initiatives - YUM announced a strategic review for the Pizza Hut brand to maximize long-term value and plans to acquire 128 Taco Bell restaurants in the Southeast U.S. to enhance its equity-owned restaurant base and unlock new growth opportunities [2][9] Financial Position - As of September 30, 2025, cash and cash equivalents were $1.05 billion, up from $616 million at the end of 2024, while long-term debt increased to $11.5 billion from $11.3 billion [10] Long-Term Growth Targets - YUM reaffirmed its long-term growth algorithm, targeting approximately 5% annual unit growth, around 7% yearly system sales growth, and at least 8% annual growth in core operating profit [11]