Yum! Brands (YUM) solid Q1 results were supported by its Taco Bell and KFC brands, which contributed more than 80% to the company's profits, Oppenheimer said late Wednesday.

Yum! reported Q1 adjusted earnings of $1.30 per diluted share, up from $1.15 a year earlier.

"Amid a choppy backdrop, we believe YUM represents a resilient play underpinned by Taco Bell and KFC-Int," which "hold levers to sustain improved momentum," the research firm said.

Oppenheimer noted that Taco Bell's Q1 9% growth in the US same-store sales stands out in a tough macro environment. Outside the US, the firm expects KFC to accelerate from the current 3% growth recorded in Q1. It also said that it has "more confidence that [KFC] is not seeing geopolitical backlash."

Oppenheimer said the company's affirmation that its full-year earnings before interest and taxes will grow by 8% takes into account improvement in the back-half owing to timing of some expenses in Q2.

Oppenheimer raised its full-year 2025/2026 EPS estimates to $6.07/$6.80 from $6.03/$6.78, citing better foreign exchange rates and lower interest expense.

Oppenheimer reiterated outperform rating on the stock, with a $185 price target.

Price: 148.36, Change: -2.09, Percent Change: -1.39