Yum Brands Revenue Grows 8% | Strong Taco Bell & KFC

LOUISVILLE, November 4, 2025 – Yum Brands (YUM) reported third-quarter revenue of 1.98 billion, up 8% year-over-year, driven by robust growth at Taco Bell and KFC despite Pizza Hut struggles¹. The strong performance comes as the company explores strategic options for its underperforming Pizza Hut division.

Key Takeaways

Revenue rose 8% to 1.98 billion in Q3
Taco Bell same-store sales grew 7%, KFC up 6%
Company exploring potential Pizza Hut sale amid brand struggles

Market reaction & context

The restaurant operator’s revenue growth outpaced the broader quick-service restaurant sector, which has faced pressure from inflation and changing consumer spending patterns. Worldwide system sales increased 5% excluding foreign exchange impacts, with the company adding 1,131 gross new units during the quarter³.

However, earnings per share of 1.41 missed analyst expectations, highlighting operational challenges despite top-line growth⁴. The mixed results reflect the company’s bifurcated performance across its brand portfolio.

Detailed analysis

Taco Bell emerged as the standout performer with same-store sales growth of 7% and system sales rising 9%^3,4. The Mexican-inspired chain’s momentum reflects successful menu innovations and digital initiatives that have resonated with younger consumers.

KFC showed improvement with 6% same-store sales growth, particularly in U.S. markets where the chicken chain has worked to revitalize its brand positioning^2,8. The performance marks a turnaround for the brand after several quarters of sluggish growth.

Strategic developments

The company’s exploration of a potential Pizza Hut sale underscores management’s focus on optimizing its brand portfolio¹. Pizza Hut has struggled to compete effectively in the increasingly crowded pizza delivery market dominated by Domino’s and Papa John’s.

The strategic review comes as Yum Brands seeks to concentrate resources on its higher-growth concepts. Taco Bell and KFC represent the company’s core growth drivers, with stronger unit economics and expansion potential.

International performance

Yum China, the company’s former subsidiary that operates KFC and Pizza Hut in China, separately reported 8% operating profit growth to 400 million with margins expanding 40 basis points year-over-year⁶. The strong performance in China highlights the brands’ continued appeal in key international markets.

The company added significant unit count globally during the quarter, reflecting ongoing franchise expansion efforts across emerging markets where quick-service restaurants continue gaining market share.

Outlook

Management’s strategic focus on portfolio optimization positions the company to allocate capital more efficiently toward its strongest growth vehicles. The potential Pizza Hut divestiture could provide resources for accelerated expansion of Taco Bell and KFC.

Digital initiatives and menu innovation remain key priorities as the company navigates an increasingly competitive quick-service landscape shaped by changing consumer preferences and delivery trends.

Not investment advice. For informational purposes only.