Yum! Brands reports adjusted earnings of $1.56 per share despite revenue missing forecasts
Key Facts
Yum! Brands reported adjusted earnings of $1.56 per share in the third quarter of 2026, above analysts’ estimate of $1.53, while revenue came in at $2.05 billion against consensus of $2.1 billion, according to Investing.com. The results were released before the market opened on November 3, after the company had previously announced that they would be published at 7:00 a.m. Eastern Time. Compared with the same period a year earlier, adjusted earnings per share fell 1%, according to company data published via StockTitan. The company had scheduled a call to review its performance and strategy for 8:15 a.m. Eastern Time. The results therefore combined adjusted earnings above estimates with revenue below expectations, alongside a year-over-year decline in adjusted earnings per share.
At the brand level, Taco Bell system sales fell 2% excluding the effect of foreign currencies, and same-store sales declined 4% during the quarter, according to Investing.com. Operating profit also weakened, falling 4% to $255 million. By contrast, KFC operating profit rose 8% excluding foreign currencies, reaching $425 million. The figures put the two brands on diverging paths: Taco Bell sales and operating profit declined, while KFC operating profit increased. The results also showed global system sales rising 3%, while global same-store sales were unchanged, according to company data published via StockTitan.
Group revenue fell short of analyst consensus, coming in at $2.05 billion against expectations of $2.1 billion, according to Investing.com. At the same time, adjusted earnings per share topped the estimate of $1.53, reaching $1.56. Year over year, adjusted earnings per share fell 1%, according to company data published via StockTitan. These comparisons put earnings above the market estimate but below the level recorded in the same period a year earlier. This came in a quarter marked by divergent sales and operating profit trends across the leading brands, with operating profit rising at KFC and falling at Taco Bell.
In premarket trading on November 3, Yum! Brands shares rose 3.6% after the company released its third-quarter results before the opening bell, according to Investing.com. The stock had closed at $157.6 on November 2, according to EL7 data. The premarket move followed adjusted earnings per share that exceeded analyst estimates, despite revenue falling short of consensus. The company is scheduled to review its performance and strategy on a call beginning at 8:15 a.m. Eastern Time on November 3, after publishing the results at 7:00 a.m. The schedule follows a timetable announced by the company on October 20.