Yum! Brands, Inc. (YUM)

Yum Brands reported third-quarter 2026 results on 3 November, with earnings per share of $5.92 under GAAP, the standard accounting rules, and $1.56 excluding special items 1.

The gap comes from the Pizza Hut sale, because 2026 operating profit under GAAP includes a pre-tax gain of about $1.7 billion from it 1.

Total revenues were $2,054 million in the quarter, against $1,979 million a year earlier 1.

Excluding Pizza Hut from both years, core operating profit, the company's profit measure without special items and currency effects, grew 1 percent in the quarter 1.

Same-store sales, sales at restaurants open a year or more, grew 1 percent at KFC and fell 4 percent at Taco Bell 1.

Chief executive Chris Turner said the company had completed the Pizza Hut divestiture, and that Taco Bell U.S. had been outpacing the quick-service restaurant industry on same-store sales growth since the end of September 1.

Yum Brands was incorporated in North Carolina in 1997 5.

On 31 October 2016 it spun off its China business into a separate public company, Yum China Holdings 5.

Yum China became its largest master franchisee, the operator with rights to a whole territory, and pays a continuing fee of 3 percent on system sales of the company's brands in mainland China 5.

Total revenues rose from $7,076 million to $7,549 million and then $8,214 million in the latest three annual reports 5.

Operating profit, revenue less costs, rose from $2,318 million to $2,403 million and then $2,574 million over the same span 5.

From the fourth quarter of 2023 a military conflict in the Middle East hurt sales in KFC and Pizza Hut markets 5.

The company said the effect was about a one-point drag on its same-store sales growth in the year ended 31 December 2024 5.

In the first quarter of 2024 it sold its roughly 5 percent minority stake in Devyani International, an Indian franchisee of KFC and Pizza Hut, for pre-tax proceeds of $104 million 5.

In the second quarter of 2024 it also acquired KFC restaurants in the United Kingdom and Ireland, and company-owned KFC units rose from 220 to 468 that year 5.

In 2025 KFC units grew 6 percent to 33,897, and Taco Bell franchise same-store sales grew 7 percent 5.

In 2025 the company began a review of strategic options for Pizza Hut, and in June 2026 it signed two agreements to sell the brand 6.

KFC

KFC was founded in Corbin, Kentucky, by Colonel Harland D Sanders and sells fried and non-fried chicken 5.

The KFC Division had 35,421 restaurants at the end of the third quarter, 7 percent more than a year earlier 1.

Its system sales, sales at all restaurants whether company-owned or franchised, were $10,046 million in the quarter, and operating profit was $425 million 1.

China is its largest market at 26 percent of KFC system sales, based on full year 2025 1.

Taco Bell

The first Taco Bell opened in 1962 in Downey, California, and the brand specializes in tacos, burritos, quesadillas and nachos 5.

It had 9,102 restaurants at the end of September, 3 percent more than a year earlier 1.

Division system sales were $4,292 million in the quarter, down 2 percent, and operating profit was $255 million, down 5 percent 1.

U.S. company-owned restaurant margins were 20.5 percent, and Taco Bell International same-store sales grew 5 percent 1.

Pizza Hut, now sold

On 7 August 2026 the company sold the rights to Pizza Hut in mainland China to Yum China for $1.2 billion in cash 3.

On 1 September 2026 it sold the rest of its global Pizza Hut business to Toppings TopCo, LLC for $1,488,000,000 in cash, subject to adjustments 2.

The third-quarter release names LongRange Capital as the purchaser of Pizza Hut outside mainland China 1.

Habit Burger and Grill

Habit Burger and Grill is a fast-casual chain of made-to-order chargrilled burgers and sandwiches, with 384 units at the end of 2025 5.

Its system sales grew 3 percent in the third quarter and same-store sales were flat 1.

Technology

The company introduced Byte by Yum in 2025, a software and artificial intelligence platform covering app ordering, point of sale and kitchen and delivery optimization 5.

Excluding Pizza Hut, digital system sales topped $9 billion in the quarter, and digital mix reached 64 percent 1.

People

Chris Turner has been chief executive since October 2025 and was chief financial officer from August 2019 5.

Scott Mezvinsky has led the KFC Division since March 2025 5.

Aaron Powell resigned as Pizza Hut chief executive effective 1 September 2026 2.

Steve Bratspies joined the board as a director effective 26 August 2026 7.

The company reported about 28,000 employees in the U.S. and about 21,000 outside it in its latest annual report, and about 90 percent work in restaurants 5.

The umbrella, in words

The main brands are KFC, Taco Bell and Habit Burger and Grill, and 97 percent of units at the end of 2025 were run by independent franchisees or licensees 5.

Exhibit 21.1 of the annual report lists subsidiaries such as Dragontail Systems in Canada, Israel and Australia, a name among many 8.

An amended master license agreement signed on 7 August 2026 lets a Yum China subsidiary earn incentives tied to KFC system sales growth goals over 12 years, and Yum China guarantees its payment obligations 3.

At year end 2025 the company owned land, a building or both for 514 restaurants, in connection with its 1,617 company-owned restaurants 5.

Vanguard Capital Management reported owning 7.53 percent of the common stock in its Schedule 13G 9.

The company targets 5 percent unit growth, 7 percent system sales growth excluding currency and at least 8 percent core operating profit growth, goals first announced in 2022 1.

In June 2026 its board authorized repurchases of up to $4 billion of common stock through 30 June 2028 6.

The Pizza Hut sale agreement makes the company eligible for $75 million of contingent payment if the sold business meets financial targets in any of the fiscal years ending 31 December 2027, 2028 or 2029 4.

The company agreed to a five-year non-competition covenant in favor of the purchaser, with an eighteen-month non-solicitation provision 4.

The sale also brings a transition services agreement under which the company and the purchaser provide services to each other after closing 4.

Chief executive Chris Turner said Taco Bell is to keep building on its momentum with differentiated value and innovation 1.

Steve Bratspies is to stand for election by shareholders at the next annual meeting, the 8-K says 7.

The release says disclosures on debt in the restricted group capital structure are to come with the third-quarter Form 10-Q 1.