How did Yum! Brands perform on a non-GAAP basis in the first quarter of 2026?

EPS excluding Special Items was $1.50, up 15% from $1.30. Core Operating Profit grew 6%, to $612 million from $575 million. Worldwide system sales grew 6% excluding foreign currency translation.

Why did Pizza Hut's results decline?

Pizza Hut Division GAAP Operating Profit fell 14% to $64 million and Core Operating Profit fell 16%. System sales and same-store sales were even excluding foreign currency translation, and U.S. system sales declined 6%. The filing also notes $37 million of charges tied to the Pizza Hut strategic options review.

What drove the difference between GAAP and EPS excluding Special Items?

Special Items were a net benefit to operating profit of $6 million, which includes $44 million of litigation settlement income offset by $37 million of Pizza Hut strategic options review charges and other costs. Special Items also included an $8 million net tax benefit, which lifted GAAP net income above the adjusted figure in this quarter.

What is the company's long-term growth target?

The company targets, on average over an extended period, 5% unit growth, 7% system sales growth excluding foreign currency translation, and at least 8% Core Operating Profit growth. The company states it cannot forecast Special Items or foreign currency impacts, so it does not provide a GAAP Operating Profit growth estimate.

What changed in the company's debt and shareholder returns?

Short-term borrowings rose to $1,741 million from $38 million, and long-term debt fell to $10,213 million from $11,872 million. The company repurchased $185 million of common stock and paid $207 million in dividends, and it declared $0.75 per share in dividends versus $0.71 a year earlier. Shareholders' deficit was $(7,283) million.

YUM 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.

Yum!

Brands, Inc. reported first-quarter 2026 results for the quarter ended March 31, 2026. GAAP diluted EPS was $1.55^a, up from $0.90 a year earlier, and EPS excluding Special Items was $1.50, a 15% increase from $1.30. Worldwide system sales grew 6% excluding foreign currency translation, unit count increased 5% including 1,030 gross new units, and GAAP Operating Profit grew 17% to $644 million.

Core Operating Profit grew 6% to $612 million^b. Net income was $432 million compared with $253 million a year earlier. The results were led by Taco Bell, which posted 8% same-store sales growth, and KFC, which posted 7% unit growth and 2% same-store sales growth.

Digital system sales approached $11 billion^c, with a record digital mix of 63%. Pizza Hut was flat on system sales and same-store sales excluding foreign currency translation, and its GAAP Operating Profit declined 14%. The filing attributes $37 million of Pizza Hut-related charges to its strategic options review, and it records $44 million of income from a credit card interchange fee litigation settlement, which the company treats as a Special Item.

The balance sheet shows short-term borrowings of $1,741 million^d, up from $38 million at December 31, 2025, and long-term debt of $10,213 million, down from $11,872 million. Total shareholders' deficit was $(7,283) million.

The company declared dividends of $0.75 per share, up from $0.71, and repurchased $185 million of common stock. The filing states that disclosures on outstanding debt in the Restricted Group capital structure will be provided with the first-quarter Form 10-Q.

02—Key points

Key Highlights

GAAP diluted EPS rose to $1.55 from $0.90; EPS excluding Special Items was $1.50, up 15% from $1.30.
Worldwide system sales grew 6% excluding foreign currency translation, with unit count up 5% and 1,030 gross new units opened in the quarter.
Taco Bell same-store sales grew 8% and Taco Bell Division Core Operating Profit grew 16%; KFC unit growth was 7%.
Digital system sales approached $11 billion, a record 63% of system sales mix.
Pizza Hut Division GAAP Operating Profit fell 14% and Core Operating Profit fell 16%, with system sales and same-store sales flat excluding foreign currency translation; Pizza Hut strategic options review charges were $37 million.
A $44 million credit card interchange fee litigation settlement, net of legal expenses, was recorded in Other (income) expense and treated as a Special Item.
Short-term borrowings increased to $1,741 million from $38 million, while long-term debt decreased to $10,213 million from $11,872 million; disclosures on Restricted Group debt are deferred to the Form 10-Q.

03—Questions

Frequently Asked Questions

How did Yum! Brands perform on a non-GAAP basis in the first quarter of 2026?
EPS excluding Special Items was $1.50, up 15% from $1.30. Core Operating Profit grew 6%, to $612 million from $575 million. Worldwide system sales grew 6% excluding foreign currency translation.
Why did Pizza Hut's results decline?
Pizza Hut Division GAAP Operating Profit fell 14% to $64 million and Core Operating Profit fell 16%. System sales and same-store sales were even excluding foreign currency translation, and U.S. system sales declined 6%. The filing also notes $37 million of charges tied to the Pizza Hut strategic options review.
What drove the difference between GAAP and EPS excluding Special Items?
Special Items were a net benefit to operating profit of $6 million, which includes $44 million of litigation settlement income offset by $37 million of Pizza Hut strategic options review charges and other costs. Special Items also included an $8 million net tax benefit, which lifted GAAP net income above the adjusted figure in this quarter.
What is the company's long-term growth target?
The company targets, on average over an extended period, 5% unit growth, 7% system sales growth excluding foreign currency translation, and at least 8% Core Operating Profit growth. The company states it cannot forecast Special Items or foreign currency impacts, so it does not provide a GAAP Operating Profit growth estimate.
What changed in the company's debt and shareholder returns?
Short-term borrowings rose to $1,741 million from $38 million, and long-term debt fell to $10,213 million from $11,872 million. The company repurchased $185 million of common stock and paid $207 million in dividends, and it declared $0.75 per share in dividends versus $0.71 a year earlier. Shareholders' deficit was $(7,283) million.

04—Continue

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