Core Insights - Yum! Brands, Inc. has a market capitalization of $44.6 billion and operates over 55,000 restaurants globally under brands like KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill [1] Financial Performance - In Q4 of fiscal 2025, Yum! reported a revenue increase of 6% year-over-year to $2.51 billion, with global same-store sales up 3% and system sales increasing by 5% [4] - Adjusted EPS for the quarter was $1.73, reflecting an 8% year-over-year growth, but slightly below analyst expectations [4] Stock Performance - Yum! shares have gained 8%, underperforming the S&P 500 Index, which has risen nearly 11.8% [2] - Year-to-date, Yum!'s stock rose 6.1%, contrasting with a slight decline in the S&P 500 [2] Analyst Ratings and Expectations - Analysts project Yum!'s EPS to grow by 9.4% to $6.07 for the fiscal year ending December 2026 [5] - The consensus rating among 28 analysts is a "Moderate Buy," with 11 "Strong Buy" ratings and 17 "Holds" [5] - Evercore ISI analyst raised the price target for Yum! to $190, indicating confidence in the stock's potential [7]

Core Insights - The article discusses the potential divestment of Pizza Hut, which is characterized as the "ugly duckling" of the restaurant industry [1] Group 1: Company Overview - The author is an equity analyst and founder of Goulart's Restaurant Stocks, focusing on the U.S. restaurant industry, including various segments from quick-service to fine dining [1] - The research firm applies advanced financial modeling and sector-specific KPIs to uncover hidden value in public equities, particularly in micro and small-cap companies [1] Group 2: Research Focus - The analyst covers a range of sectors including consumer discretionary, food & beverage, casinos & gaming, and IPOs, with a particular emphasis on often-overlooked small-cap stocks [1] - The author's research has been featured on multiple platforms such as Seeking Alpha, Yahoo Finance, and Investing.com, indicating a broad reach and influence in the industry [1] Group 3: Analyst Background - The author possesses an MBA in Controllership and Accounting Forensics, along with a Bachelor's in Business Administration, providing a strong academic foundation for the analysis [1] - Specialized training in valuation, financial modeling, and restaurant operations enhances the author's expertise in the field [1]

Core Insights - The article discusses the potential divestment of Pizza Hut, which is characterized as the "ugly duckling" of the restaurant industry [1] Group 1: Company Overview - The author is an equity analyst and founder of Goulart's Restaurant Stocks, focusing on the U.S. restaurant industry, including various segments from quick-service to fine dining [1] - The research firm applies advanced financial modeling and sector-specific KPIs to uncover hidden value in public equities, particularly in micro and small-cap companies [1] Group 2: Research Focus - The analyst covers a range of sectors including consumer discretionary, food & beverage, casinos & gaming, and IPOs, with a particular emphasis on often-overlooked small-cap stocks [1] - The author's research has been featured on multiple platforms such as Seeking Alpha, Yahoo Finance, and Investing.com, indicating a broad reach and influence in the investment community [1] Group 3: Analyst Background - The author possesses an MBA in Controllership and Accounting Forensics, along with a Bachelor's in Business Administration, providing a strong academic foundation for the analysis [1] - Specialized training in valuation, financial modeling, and restaurant operations enhances the author's expertise in the restaurant sector [1]

Market Overview - Wall Street has experienced significant volatility since the beginning of the year, with major indexes giving up most of their gains recently [1][2] - Economic uncertainty, including higher inflation and borrowing rates, along with geopolitical tensions, has contributed to this volatility [2][4] - The S&P 500 dropped 1.23% to 6,798.40 points, entering negative territory for the year, while the Dow and Nasdaq also saw declines of 1.2% and 1.6% respectively [5] Economic Indicators - Job openings in December totaled 6.54 million, a decrease of 386,000 from November, marking the lowest level since September 2020 [6] - Jobless claims rose to 231,000 for the last week of January, up 22,000 from the previous week, exceeding the consensus estimate of 212,000 [7] - U.S. companies announced 108,435 layoffs in January, the highest total for that month since the global financial crisis [7] Federal Reserve Actions - The Federal Reserve maintained interest rates in January after a total reduction of 75 basis points last year, facing challenges from high inflation [8] Dividend-Paying Stocks - Investors are advised to consider dividend-paying stocks as a means to protect capital during market volatility [2] - The New York Times Company (NYT) announced a dividend of $0.23 per share, with a dividend yield of 1.06% and a payout ratio of 30% of earnings [10][12] - Yum China Holdings, Inc. (YUMC) declared a dividend of $0.29 per share, yielding 1.81% with a payout ratio of 40% of earnings [14][12] - Esquire Financial Holdings, Inc. (ESQ) announced a dividend of $0.20 per share, yielding 0.60% with a payout ratio of 12% of earnings [16][12]

Leadership Change - Devyani International (DIL) has appointed Manish Dawar as the new CEO and president, effective from 1 April 2026, succeeding Viraj Joshi who will remain as a non-executive director [1][2] - The board believes that this leadership transition is crucial for DIL's next phase, which requires a bold strategic vision and strong execution capability [2] Financial Performance - DIL reported a consolidated net loss of Rs103.9 million ($1.15 million) for Q3 FY26, compared to a loss of Rs4.9 million in the same period a year earlier [3] - Excluding a one-time charge related to India's new labor laws, DIL posted a profit of Rs659.8 million ($7.31 million) for the December quarter [3] Merger Agreement - DIL has entered a merger agreement with Sapphire Foods, which will combine two Yum! Brands franchise operators in India, creating one of the largest quick-service restaurant groups in the country [3][4] - The merger is expected to take approximately 12 to 15 months to become effective [4]

Financial Performance - Yum! Brands reported a 27% increase in fourth-quarter 2025 net income, rising to $535 million from $423 million a year earlier [1] - Revenue for Q4 2025 was $2.51 billion, up 6% from $2.36 billion in Q4 2024 [1] - Global system sales in the quarter rose 5%, with Taco Bell leading at 8% growth and KFC at 6% [1][3] Expansion and Growth - The company opened 1,814 gross units in the quarter, translating to 3% year-on-year unit growth [2] - KFC accounted for the majority of the expansion with 1,132 gross restaurant openings, while Taco Bell added 228 new outlets [2] - For the full fiscal year 2025, Yum! Brands opened 4,567 gross units [3] Digital Sales and Profitability - Digital system sales in Q4 exceeded $11 billion, with digital channels accounting for nearly 60% of system sales [2] - GAAP earnings per share (EPS) were $1.91 for the quarter, while EPS excluding special items was $1.73 [3] Strategic Focus and Future Plans - CEO Chris Turner highlighted strong fundamentals at KFC and Taco Bell, with a focus on accelerating long-term growth through the "Raise the Bar" priorities [4] - The board approved a dividend of $0.75 per share, marking a 6% increase [4] - A strategic review of the Pizza Hut brand is expected to be completed this year, which may involve shutting down 250 underperforming stores in the US in the first half of 2026 [4][5]

Core Insights - Yum China Holdings, Inc. (NYSE:YUMC) is a significant player in the fast-food industry in China, operating brands such as KFC, Pizza Hut, and Taco Bell, and competes with McDonald's and Starbucks [1] Financial Performance - YUMC's stock is currently priced at $53.14, reflecting an increase of 4.73% or $2.40, with a trading range today between $50.40 and $53.41 [4] - Over the past year, the stock has reached a high of $53.99 and a low of $41, with a market capitalization of approximately $18.78 billion and a daily trading volume of 1,968,030 shares on the NYSE [4][5] Analyst Outlook - Jefferies analyst Anne Ling has set a price target of $63.64 for YUMC, indicating a potential upside of approximately 19.76%, reflecting confidence in the company's growth prospects and strategic initiatives [2][5] Earnings Call Insights - YUMC recently held its Q4 2025 earnings call, which provided insights into the company's financial performance, highlighting significant achievements and challenges faced during the quarter [3][5]

Core Viewpoint - Jefferies has upgraded Yum China Holdings to a "Buy" rating and increased the price target, reflecting strong financial performance and positive growth prospects for the company [1][6]. Financial Performance - Yum China reported earnings of $0.40 per share for the fourth quarter, exceeding the Zacks Consensus Estimate of $0.35 per share by 14.29% [2][6]. - The company's revenues for the quarter reached $2.82 billion, surpassing the Zacks Consensus Estimate by 3.01% and showing an increase from $2.6 billion in the same quarter the previous year [3][6]. Stock Performance - The stock price of Yum China (YUMC) is currently at $53.14, reflecting a price increase of $2.40 or 4.73% [4]. - Over the past year, YUMC has fluctuated between a low of $41 and a high of $53.99, indicating a positive trend in its stock performance [4]. Market Position - Yum China's market capitalization is approximately $18.79 billion, with a trading volume of 1,968,030 shares, indicating strong investor confidence in the company's growth prospects [5].

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]

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]