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YUM! Brands, Inc. YUM reported first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
The company’s performance reflects solid contributions from the KFC and Taco Bell divisions. On the digital front, the company reported meaningful progress, with digital sales nearing $9 billion and accounting for 55% of total sales. Franchisee feedback on Yum!’s proprietary digital platform, Byte by Yum!, remained positive, reinforcing the brand’s strategic push toward tech-driven growth.
YUM’s Q1 Earnings and Revenue Discussion
For the quarter under review, YUM reported adjusted earnings per share (EPS) of $1.30, outpacing the Zacks Consensus Estimate of $1.29 by 0.8%. The bottom line increased 13% from $1.15 reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Quarterly revenues of $1.79 billion missed the consensus mark of $1.83 billion. The top line rose 12% on a year-over-year basis.
Yum! Brands, Inc. Price, Consensus and EPS Surprise
Yum! Brands, Inc. price-consensus-eps-surprise-chart | Yum! Brands, Inc. Quote
Worldwide system sales — excluding foreign currency translation — increased 5% year over year, with Taco Bell rising 11% and KFC rising 5%. The metric fell 3% year over year for Pizza Hut.
Divisional Performance of YUM
YUM! Brands primarily announces results under four divisions: KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
KFC: Revenues at the KFC division totaled $773 million, up 22% year over year. Our model predicted the metric to increase by 15% from a year ago. During the quarter, the segment’s comps grew 2% year over year against a 2% decline reported in the prior-year quarter.
The division’s operating margin contracted 660 basis points (bps) year over year to 42.9%. In the quarter, the KFC division opened 528 gross new restaurants.
Pizza Hut: This division’s revenues amounted to $231 million, down 3% year over year. Our model predicted the metric to be $253.3 million. Comps decreased 2% year over year compared with the 7% fall reported in the year-ago quarter.
The division’s operating margin contracted 670 bps year over year to 32.3%. The Pizza Hut division opened 198 gross new restaurants during the first quarter.
Taco Bell: The quarterly revenues of this division were $657 million, up 10% year over year. Our model predicted the metric to increase 10.2% from the year-earlier level. Comps increased 9% year over year compared with 1% growth reported in the prior-year quarter.
The division’s operating margin expanded 190 bps year over year to 36.7%. Taco Bell opened 24 gross new restaurants.
Habit Burger Grill: The division’s revenues amounted to $128 million, compared with $130 million reported in the prior-year quarter. Our model predicted the metric to increase 15.8% year over year.
During the quarter, the segment’s comps declined 3% year over year. In the quarter, the division opened one gross new restaurant.