Street View: Taco Bell and KFC boost Yum Brands amid Pizza Hut strategic review

Yum! Brands

05/11/2025 12:36

** KFC parent Yum Brands YUM.N beat Q3 same-store sales and profit estimates on Tuesday, helped by strong demand for its value-deal meals

** Shares are up ~1% premarket

** Average rating of 32 analysts is "hold"; median PT is $163 - data compiled by LSEG

NAVIGATING GROWTH AND STRATEGIC SHIFTS

** TD Cowen ("hold", PT: $162) expects KFC's same-store sales to normalize by 2026, notes Taco Bell's strong momentum

** BTIG ("neutral") acknowledges strong Taco Bell, KFC performance amid weak consumer environment; points to ongoing challenges, strategic review of Pizza Hut as factors for neutral outlook

** Jefferies ("hold", PT: $147) anticipates continued strength from Taco Bell, improved KFC outlook, while concerns regarding strategic review of Pizza Hut and its potential drag on core operating profit targets remain

** Piper Sandler ("neutral", PT: $158) acknowledges uncertainty surrounding the Pizza Hut strategic review, including potential sales proceeds and their use

** Bernstein ("Market-Perform", PT: $160) views Pizza Hut's strategic review as positive for portfolio value despite potential near-term adjusted operating income growth drag

(Reporting by Chandni Shah in Bengaluru)

((Chandni.shah@thomsonreuters.com;))