Jul 30, 2026 earnings call — Pizza Hut sale and Taco Bell recovery
Announced sale of Pizza Hut for $2.7 billion in the aggregate.
Revenue $2.2B (est $2.2B) · EPS $1.62 (est $1.57)
Key quotes
"As part of the strategy, KFC will modernize the brand and focus on menu innovation surrounding boneless chicken, crave-worthy sauces, a more contemporary restaurant experience and a refreshed brand visual identity."
"As we now assess recent trends, Taco Bell's U.S. same-store sales growth quarter-to-date through July 27 is negative 2%."
"Scaling Byte puts Yum! on a common technology foundation across every channel, simplifying operations and allowing teams in each market to manage menus, pricing, promotions and store hours across all our ordering channels via a single platform."
Analyst Q&A 7
Taco Bell sales recovery and safety
Q (Dennis Geiger · UBS): The analyst asked for the latest trends at Taco Bell, whether the food safety issue is different from past incidents, and what actions the company has taken to bring customers back.
A: Management said quarter-to-date same-store sales were negative 2% through July 27 and the peak impact was on July 18. They said sales have shown a steady recovery and consumers are returning, with strong online engagement and successful promotions driving traffic and loyalty. Their goal is to return to the brand's pre-issue trajectory.
"With respect to the consumer sentiment, though, we've seen real improvement as consumers have understood better the nature of the issue and they understand that it is not a Taco Bell specific issue." — Christopher Turner (CEO)
KFC growth drivers and outlook
Q (David Palmer · Evercore): The analyst asked how KFC will drive faster system-wide sales and whether current same-store and unit growth are good assumptions or could improve.
A: Management said KFC is a global powerhouse and benefits from category tailwinds for chicken, first-mover advantages, and strong franchise partners. They described the Raise the B.A.R. strategy: new brand identity, larger tenders, more sauces, beverages like Kwench, and wider use of Byte to power loyalty, aiming for higher same-store sales and AUVs over time across many countries. They noted it will take time across 150 countries but early proof points exist in markets like the U.K., Korea, Japan and Brazil.
"And we think we can achieve higher and stronger same-store sales growth and higher and stronger AUVs." — Christopher Turner (CEO)
Why Taco Bell's digital is so large
Q (Brian Bittner · Oppenheimer): The analyst asked why Taco Bell's digital sales mix is 47%, how that digital mix breaks down, and how much digital has driven comps.
A: Management said Taco Bell built a strong first-party digital capability and loyalty program that goes beyond earn-and-burn to build a real connection with fans. They noted the program's exclusive offers and Tuesday drops drive app and kiosk use, and that Byte powers Taco Bell's digital performance, helping both top-line and margins for franchisees. They said this digital strength helped Taco Bell grow ahead of QSR peers for many quarters.
"I really think it speaks to the power of loyalty and the unique nature of Taco Bell's loyalty programs." — Christopher Turner (CEO)
KFC global rollout and franchise changes
Q (Brian Harbour · Morgan Stanley): The analyst asked how much of KFC's product evolution will be brought globally, whether franchisees must invest in store or brand image changes, and the timeline.
A: Management said the Raise the B.A.R. work is a global initiative and most KFC sales are outside the U.S. The U.K. will be a lead market for the new visual identity, tenders, sauces and Kwench, with Australia also a lead for some items. They said the program will take time to roll out across 150 countries with consistent playbooks tailored to local consumers.
"88% of our KFC system sales are outside of the U.S." — Christopher Turner (CEO)
G&A outlook after Pizza Hut sale
Q (John Ivankoe · JPMorgan): The analyst asked how to think about G&A beyond 2026 into 2027 and 2028 after the Pizza Hut sale, including percent of system sales, dollar terms, and efficiency gains from AI and Byte.
A: Management said they've kept G&A flat while growing units and system sales over the last 3 years and year-to-date system sales are up 7% while G&A is flat excluding FX and acquisition effects. They expect no change to their disciplined pro forma for Pizza Hut and believe the 1.7% G&A percent of system sales remains relevant, while they will allocate resources to raise the bar and still meet disciplined G&A targets. They noted TSAs rolling off is a smaller issue and that AI will play a role among other considerations.
"We expect no change to our disciplined pro forma for Pizza Hut." — Ranjith Roy (CFO)
Magnitude of Taco Bell recent sales drop
Q (Andrew Charles · TD Cowen): The analyst asked whether the quarter-to-date down 2% implies trends down about 20% over the last two weeks, and whether recent actions produced week-over-week improvement.
A: Management said the peak impact was on July 18 and that since then trends have steadily improved. They said the last 4 days are well within the 20% and that over the last 10 days trends have been on both sides of that, with current levels well within the 20% range. This was presented as a near-term improvement following their action plan.
"I would say that since then we've seen a steady improvement in trends and the last 4 days are well within the 20%." — Ranjith Roy (CFO)
Kwench beverage program impact
Q (Gregory Francfort · Guggenheim): The analyst asked what drove the Kwench beverage program, whether Yum under-indexes on beverages, and early results in Australia and the U.K. on AUV or comps.
A: Management said Kwench was driven by insights about demand for unique crafted beverages from Collider and the need for a relevant global beverage offering for KFC's large international footprint. They said testing shows it has manageable CapEx with different packages by market AUV, franchisees will invest only if there's a return, and current impacts on same-store sales and incrementality support a go in the U.K. and Australia. They will continue to learn and refine the program.
"What we're seeing right now in terms of the impact on same-store sales and incrementality relative to that investment tells us that this is a go in the U.K. and Australia." — Christopher Turner (CEO)