Yum Brands Reports Q3 2026 Results Amidst Taco Bell Recovery and Pizza Hut Divestiture
Yum Brands (YUM) reported third-quarter 2026 results characterized by mixed performance across its major brands. Non-GAAP EPS fell 1% year-over-year to $1.56, while core operating profit grew 1% excluding Pizza Hut. The company successfully completed the sale of Pizza Hut for approximately $2.4 billion in net proceeds to LongRange Capital and Yum China. KFC showed resilience with a 6% increase in system sales (excluding currency), bolstered by significant unit growth and strong performance in India and the Middle East. Conversely, Taco Bell faced challenges in the U.S., where same-store sales declined 4% due to an industrywide food safety issue over the summer. However, early Q4 data suggests a recovery for Taco Bell, with loyalty membership growing 25% year-over-year. The company continues to invest heavily in digital and automation, reporting $9 billion in digital system sales and noting that Voice AI has driven a 1.5% sales uplift at select Taco Bell locations.