--- title: "Yum! Brands | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 2.169 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/294351158.md" datetime: "2026-07-30T11:06:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294351158.md) - [en](https://longbridge.com/en/news/294351158.md) - [zh-HK](https://longbridge.com/zh-HK/news/294351158.md) --- # Yum! Brands | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 2.169 B Revenue: As of FY2026 Q2, the actual value is USD 2.169 B, missing the estimate of USD 2.177 B. EPS: As of FY2026 Q2, the actual value is USD 3.08, beating the estimate of USD 1.5618. EBIT: As of FY2026 Q2, the actual value is USD 661 M. ### Consolidated Financial Performance (Second Quarter 2026 vs. 2025) #### Revenue - Total revenues for Yum! Brands, Inc. increased by 12% to $2,169 million in Q2 2026 from $1,933 million in Q2 2025. - Company sales grew by 25% to $837 million in Q2 2026 from $669 million in Q2 2025. - Franchise and property revenues rose by 7% to $895 million in Q2 2026 from $835 million in Q2 2025. - Franchise contributions for advertising and other services increased by 2% to $438 million in Q2 2026 from $428 million in Q2 2025. #### Operating Profit - GAAP Operating Profit grew by 5% to $655 million in Q2 2026 from $622 million in Q2 2025. - Core Operating Profit grew by 5% to $683 million in Q2 2026 from $650 million in Q2 2025. - Foreign currency translation favorably impacted divisional operating profit by $16 million. #### Net Income - Net Income increased by 128% to $853 million in Q2 2026 from $374 million in Q2 2025. #### Operating Costs - Total costs and expenses, net, increased by 16% to $1,514 million in Q2 2026 from $1,311 million in Q2 2025. - Company restaurant expenses grew by 25% to $700 million in Q2 2026 from $560 million in Q2 2025. - General and administrative expenses increased by 7% to $324 million in Q2 2026 from $302 million in Q2 2025. - Franchise and property expenses increased by 6% to $41 million in Q2 2026 from $39 million in Q2 2025. - Franchise advertising and other services expense rose by 4% to $444 million in Q2 2026 from $428 million in Q2 2025. - Refranchising gain was - $1 million in Q2 2026 compared to a gain of - $11 million in Q2 2025. - Other (income) expense was $6 million in Q2 2026 compared to - $7 million in Q2 2025. #### Cash Flow (Year-to-Date 2026 vs. 2025) - Net cash provided by operating activities was $923 million in YTD 2026, up from $850 million in YTD 2025. - Net cash used in investing activities was - $169 million in YTD 2026, compared to - $130 million in YTD 2025. - Net cash used in financing activities was - $757 million in YTD 2026, compared to - $741 million in YTD 2025. #### Operational Metrics - Worldwide system sales grew 5% excluding foreign currency translation. - Unit count increased 5%, including 1,053 gross new units in the quarter. - Excluding Pizza Hut, digital system sales approached $9 billion, with digital mix exceeding 60%. ### Segment Performance (Second Quarter 2026 vs. 2025) #### KFC Division - Total revenues increased by 9% to $924 million in Q2 2026 from $849 million in Q2 2025. - Operating Profit grew by 13% to $410 million in Q2 2026 from $363 million in Q2 2025. - Operating Margin increased by 1.6 percentage points to 44.3% in Q2 2026 from 42.7% in Q2 2025. - Company restaurant margin was 12.0%, down 0.1 percentage points year-over-year. - KFC Division opened 660 gross new restaurants across 55 countries. - System Sales Ex F/X grew by 6% and Same-Store Sales grew by 2%. #### Taco Bell Division - Total revenues increased by 20% to $853 million in Q2 2026 from $711 million in Q2 2025. - Operating Profit grew by 19% to $311 million in Q2 2026 from $262 million in Q2 2025. - Operating Margin decreased by 0.4 percentage points to 36.4% in Q2 2026 from 36.8% in Q2 2025. - Company restaurant margin was 25.9%, up 1.6 percentage points year-over-year. - Taco Bell Division opened 54 gross new restaurants across 15 countries. - System Sales Ex F/X grew by 9% and Same-Store Sales grew by 7%. #### Pizza Hut Division - Total revenues increased by 6% to $254 million in Q2 2026 from $239 million in Q2 2025. - Operating Profit decreased by 12% to $70 million in Q2 2026 from $80 million in Q2 2025. - Operating Margin decreased by 5.9 percentage points to 27.6% in Q2 2026 from 33.5% in Q2 2025. - Company restaurant margin was 2.2%, up 8.8 percentage points year-over-year. - Pizza Hut Division opened 333 gross new restaurants across 33 countries. - System Sales Ex F/X decreased by 2% and Same-Store Sales decreased by 1%. #### Habit Burger & Grill Division - Habit Burger & Grill Division opened 6 gross new restaurants. - System sales grew 7% and same-store sales grew 3%. - GAAP Operating Loss was - $4 million in Q2 2026 compared to a profit of $3 million in Q2 2025. ### Outlook / Guidance - Yum! Brands, Inc. targets long-term financial performance metrics including 5% unit growth, 7% system sales growth (excluding foreign currency translation), and at least 8% Core Operating Profit Growth. - The company expects to accelerate growth as a more focused organization following the sale of the Pizza Hut business. - KFC’s aspiration is to have core elements of its refreshed brand identity and menu revamp live across its Top 20 markets by the end of 2027. ### Related Stocks - [YUM.US](https://longbridge.com/en/quote/YUM.US.md) ## Related News & Research - [Cyclospora Outbreak Hits Taco Bell Sales, But Yum! 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