Yum! Brands surpasses Q1 estimates on solid Taco Bell and KFC sales; stock up
Investing.com -- Yum! Brands topped first-quarter earnings and revenue estimates on Wednesday, reporting earnings per share (EPS) of $1.50 against the consensus of $1.37, with revenue of $2.06 billion narrowly beating expectations of $2.04 billion.
Taco Bell posted same-store sales growth of 8% in the quarter, while KFC same-store sales rose 2%. Worldwide, same-store sales climbed 3%, ahead of the roughly 2.5% analysts had expected, according to LSEG data.
Shares rose 1.5% in premarket trading by 07:17 ET.
Digital system sales approached $11 billion, with digital mix hitting a record 63%.
"We delivered solid topline momentum to start the year, with our fundamentals as strong as ever. Taco Bell delivered an outstanding 8% same-store sales growth, meaningfully ahead of the QSR industry, building off a very strong Q1 same-store sales growth rate in 2025," said CEO Chris Turner.
"Yum! is incredibly well positioned to sustain sales momentum thanks to strong global consumer appeal for our brands, long-term consumption tailwinds, and our tech and AI capabilities."
The company added 1,030 gross new units in the quarter, keeping unit count growth at 5%. Core operating profit also rose 6%.
Over the long-term, the company calls for 5% unit growth, 7% system sales growth excluding foreign exchange, and at least 8% core operating profit growth on average over time.
