Yum Brands beats Q3 profit estimates, starts strategic review for Pizza Hut

Yum! Brands

04/11/2025 12:07

Overview

Yum! Brands Q3 adjusted EPS rose 15% yr/yr, beating analyst expectations

Company initiates strategic review for Pizza Hut to maximize long-term value

Worldwide system sales grew 5%, led by Taco Bell at 9% and KFC at 6%

Outlook

Company to complete acquisition of 128 Taco Bell restaurants in Q4

Company targets 5% unit growth and 7% system sales growth long-term

Result Drivers

TACO BELL GROWTH - Taco Bell led system sales growth with a 9% increase, driven by strong same-store sales and international expansion

KFC EXPANSION - KFC's unit growth of 6% was supported by opening 760 new restaurants across 60 countries

DIGITAL SALES RECORD - Record digital sales reached $10 bln, with a 60% digital mix, contributing to overall sales growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$1.58
$1.48 (26 Analysts)
Q3 EPS
$1.41
Q3 KFC Operating Margin
44.60%
Q3 KFC Operating Profit
$392 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 21 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy."

Wall Street's median 12-month price target for Yum! Brands Inc is $160.00, about 12.9% above its November 3 closing price of $139.38

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw8YTLmxa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)