Yum! Brands Q4 profit misses estimates, dividend up 6%

Yum! Brands

04/02/2026 12:09

Overview

Fast food chain's Q4 GAAP operating profit grew 12%, core profit up 11% excluding 53rd week

Adjusted EPS for Q4 was $1.73, missing analyst expectations

Company increased quarterly dividend by 6%

Outlook

Company targets 5% unit growth over the long term

Yum! Brands aims for 7% system sales growth excluding foreign exchange

Company expects at least 8% core operating profit growth

Result Drivers

TACO BELL GROWTH - Taco Bell's same-store sales grew 7% in Q4, contributing to the division's strong performance

KFC EXPANSION - KFC achieved record development with over 1,100 new store builds in Q4

DIGITAL SALES - Robust digital system sales exceeded $11 bln, with a digital mix nearly 60%

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted EPS
Miss
$1.73
$1.77 (23 Analysts)
Q4 EPS
$1.91
Q4 KFC Operating Margin
39.80%
Q4 KFC Operating Profit
$415 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 17 "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 $167.50, about 5.5% above its February 3 closing price of $158.74

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw1NKD7Ba

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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.)