Yum! Brands reports slight increase in Q2 net income

Yum! Brands, the parent company of fast-food chains Taco Bell, Pizza Hut and KFC, has reported a net income of $374m for the second quarter (Q2) of 2025, a slight increase from the $367m recorded during the same period of the previous year.

For the quarter ending 30 June 2025, the company's generally accepted accounting principles earnings per share (EPS) stood at $1.33, while the EPS excluding special items rose by 7% year-on-year to $1.44.

Yum! Brands' worldwide system sales saw a 4% growth, excluding the impact of foreign currency translation, with Taco Bell leading with a 6% increase and KFC following closely with a 5% rise.

The company expanded its global presence with 871 new units, marking a 3% uptick in unit count.

Digital sales exceeded $9bn and accounted for 57% of the digital mix. The impact of foreign currency translation on divisional operating profit was positive, contributing a further $4m.

KFC's international unit growth was 7%, and the division opened 566 new outlets across 58 countries.

Despite a 5% decline in same-store sales in the US, KFC maintained 2% growth in same-store sales globally. The company-owned restaurant margins improved marginally to 12.1%. China stood as the biggest market for the chain.

Pizza Hut, on the other hand, faced challenges in the quarter, opening 254 new restaurants but witnessing a 1% drop in global same-store sales and a 5% decline in the US.

The division's operating profit growth was negatively affected by various factors, including spending on technology and franchise transitions, and expenses from the Global Franchise Convention.

Taco Bell also demonstrated strong growth, inaugurating 50 new restaurants in 10 countries. The division experienced a 6% increase in US system sales and 11% growth internationally, excluding foreign currency effects.

Both the US and international segments of Taco Bell saw a 4% rise in same-store sales. However, US company-owned restaurant margins at Taco Bell fell 110 basis points to 24.5%.

The Habit Burger & Grill Division opened a single new restaurant but saw a 1% drop in system sales and a 4% fall in same-store sales.

In June 2025, Chris Turner was appointed as the new CEO of Yum! Brands, effective from 1 October.

Yum! Brands current CEO David Gibbs stated: "Our second-quarter results are a testament to the power of our bold food innovation, digital transformation and the strength of our iconic brands. Taco Bell US meaningfully outpaced the category with 4% same-store sales growth, and KFC International opened 565 gross new units.”

Story ContinuesYum! Brands reaffirmed its long-term financial targets, initially set in 2022, aiming for 7% system sales growth (excluding foreign currency translation and the 53rd week), an average of 5% unit growth and a minimum of 8% core operating profit growth.

Taco Bell has also revealed plans to expand its Live Más Café beverage concept to 30 locations by the end of 2025.

"Yum! Brands reports slight increase in Q2 net income" was originally created and published by Verdict Food Service, a GlobalData owned brand.

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