Yum Brands ended the final quarter of the year with results that reflected a widening performance gap across its restaurant portfolio.
Strong demand at Taco Bell and steady international growth at KFC helped lift revenue beyond expectations, but earnings came in below forecasts and Pizza Hut continued to weigh on overall results.
The quarter highlighted how Yum’s growth is becoming increasingly concentrated in fewer brands as competition and consumer behaviour vary sharply across markets.
Revenue rises as profit growth slows
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For the three months ended Dec. 31, Yum reported revenue of $2.51 billion, up 6% from a year earlier and ahead of Wall Street expectations of $2.45 billion, according to LSEG data.
Adjusted earnings per share came in at $1.73, missing analysts’ estimates of $1.77.
Net income rose to $535 million, or $1.91 per share, compared with $423 million, or $1.49 per share, a year earlier.
The increase reflected tax benefits and other one-time items that lifted reported profit.
Excluding those items, earnings growth was more restrained, showing the impact of cost pressures and uneven brand performance.
Taco Bell leads same-store sales
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Taco Bell once again delivered the strongest results within Yum’s portfolio.
Global same-store sales at the chain jumped 7% during the quarter, well ahead of StreetAccount expectations of 5.6%.
The performance helped lift Yum’s overall global same-store sales growth to 3%.
Taco Bell has continued to attract customers with value-driven pricing and frequent menu launches, allowing it to outperform much of the broader fast food sector.
Its momentum stood out against a backdrop of more cautious consumer spending in several markets.
KFC relies on overseas markets
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KFC posted global same-store sales growth of 3%, slightly above expectations of 2.1%.
The results, however, showed a clear split between international and domestic markets.
KFC’s international restaurants recorded same-store sales growth of 3%, while US locations saw growth of 1%.
The figures suggest that overseas markets remain the main source of support for the brand.
In the US, KFC has been working through a turnaround as it faces competition from newer rivals that have gained market share in recent years.
Pizza Hut remains under pressure
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Pizza Hut continued to lag behind the rest of the group. The pizza chain reported a 1% decline in global same-store sales, driven by a 3% drop in the US.
While the decline was slightly better than Wall Street’s expectation of a 1.7% fall, it reinforced concerns around the brand’s trajectory.
In November, Yum said it would explore strategic options for Pizza Hut.
The company confirmed this week that the review process has begun, but did not provide further details.
The move comes as competition in the pizza segment remains intense and consumer preferences continue to shift.
