Abstract

Yum will report its second-quarter 2026 results on July 30, 2026 Pre-Market; this preview summarizes last quarter’s performance, consensus forecasts for revenue, margins, and EPS, and the prevailing institutional stance.

Market Forecast

Consensus for the current quarter projects total revenue of 2.20 billion US dollars, up 13.44% year over year, EBIT of 698.89 million US dollars with 6.65% growth, and EPS of 1.58 with 8.27% growth; year-over-year growth figures are interpreted from decimal ratios. Forecast commentary suggests stable gross profit margin and a resilient net profit trajectory, with adjusted EPS trending higher on same-store sales growth and unit expansion. Within the core businesses, management cues and sell-side tracking highlight steady same-store sales at Taco Bell and pricing-led resilience at KFC offsetting mixed trends at Pizza Hut; the segment with the best near-term growth setup appears to be KFC, supported by ongoing store additions and menu innovation.

Last Quarter Review

Last quarter, Yum posted revenue of 2.06 billion US dollars, gross profit margin of 44.68%, GAAP net profit attributable to the parent company of 432.00 million US dollars with a net profit margin of 20.98%, and adjusted EPS of 1.50, with revenue up 15.22% and adjusted EPS up 15.38% year over year. A notable highlight was the broad-based beat versus consensus across revenue, EBIT, and EPS, pointing to disciplined cost control and higher system sales. Main business contributions were led by KFC at 879.00 million US dollars, Taco Bell at 797.00 million US dollars, Pizza Hut at 253.00 million US dollars, and The Habit Burger Grill at 130.00 million US dollars.

Current Quarter Outlook

Main business trajectory

KFC remains the largest revenue contributor, and the brand’s pace of international development is the central driver this quarter. The channel data points to sustained pricing power and healthy mix from chicken platforms and value bundles, while marketing tie-ins are supporting traffic. With the franchise system still accelerating net new units in multiple international markets, unit growth should compound system sales, which helps protect margin even as commodity costs normalize.

Most promising segment

Taco Bell appears best positioned for consistency in same-store sales, benefiting from a cadence of product news, limited-time offers, and value layers that help balance check growth with traffic. The segment’s operating model historically converts sales into attractive profit flow-through, providing support for consolidated EBIT and EPS. If promotional activity remains effective without excessive discounting, Taco Bell can anchor group-level EPS resilience even if other banners see more volatility.

Factors likely to drive the stock this quarter

Investors will center on comparable sales by brand, especially KFC international comps and Taco Bell U.S. traffic, to validate the revenue growth path implied by forecasts. Margin commentary will be crucial: stable gross profit margin alongside disciplined G&A and franchise mix could underpin the EPS forecast near 1.58. Development targets and net unit openings, particularly in faster-growing geographies, will shape expectations for second-half system sales momentum and valuation support.

Analyst Opinions

The recent tone among covering analysts skews bullish, with the majority emphasizing durable system sales growth and manageable cost trends as supports for mid-teens revenue expansion and single-digit EPS growth this quarter. Well-followed institutions highlight continued momentum at KFC from international expansion and Taco Bell’s balanced menu strategy as the key positives. The prevailing view is that Yum can deliver on the quarter’s revenue and EPS trajectory while maintaining margin discipline, with upside optionality from accelerated unit development and effective promotional execution.