Yum! Brands

Q2 FY2026 EarningsQ2 FY26 results presented a significant beat on the bottom line, with Diluted EPS of $3.08 far exceeding the $1.56 consensus, primarily driven by a massive one-time deferred tax benefit related to the planned Pizza Hut divestiture. While total revenue of $2,169M was in-line with the $2,177M expectation (-0.3% variance), the core business showed resilience with 3% same-store sales growth and a 5% increase in system sales (ex-FX). Taco Bell remained the standout performer with 7% same-store sales growth, while Pizza Hut continued to drag with a 1% decline, justifying the strategic decision to sell the brand.