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Yum! Brands 8-K Report, Financial Results (Jul 30, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 30, 2026
Period End
July 30, 2026
Security
YUM
In the record · 2016–202610-K1110-Q328-K146

YUM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 146 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’17Feb ’17
  2. Material agreement8-K · Sep ’19Sep ’19
  3. Leadership change8-K · Sep ’21Sep ’21
  4. Material agreement8-K · Sep ’25Sep ’25

01—Abstract

Summary

Summary of the 8-K filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.

Yum!

Brands, Inc. reported second-quarter 2026 results for the quarter ended June 30, 2026 (Exhibit 99.1 earnings press release). GAAP diluted EPS was $3.08a versus $1.33 a year earlier, and EPS excluding Special Items was $1.62 versus $1.44. Worldwide system sales grew 5% excluding foreign currency translation, same-store sales grew 3%, unit count grew 5% with 1,053 gross new units in the quarter, and Core Operating Profit grew 5%.

Net income was $853 millionb versus $374 million, with the large increase driven in part by a $359 million net deferred tax benefit tied to the planned Pizza Hut sale. The most significant development is that on June 16, 2026, the company entered into two definitive agreements to sell Pizza Hut. Pizza Hut excluding Mainland China will be acquired by LongRange Capital, and Pizza Hut in Mainland China will be acquired by Yum China, which will remain master franchisee for KFC and Taco Bell in Mainland China.

At June 30, 2026, assets held for sale were $746 millionc and liabilities held for sale were $262 million. The company expects the Pizza Hut sales to close at significant book gains in the quarter ending September 30, 2026. Pizza Hut division results were weak, with system sales down 2% ex-F/X, same-store sales down 1%, and Core Operating Profit down 14%.

Taco Bell (system sales up 9%, same-store sales up 7%, Core Operating Profit up 19%) and KFC (system sales up 6% ex-F/X, same-store sales up 2%, Core Operating Profit up 9%) were the main growth drivers. Special Items of $44 milliond in the quarter were primarily third-party advisory costs for the Pizza Hut strategic options review. Shareholders' deficit was $7.107 billion at June 30, 2026, and short-term borrowings rose to $2.813 billion from $38 million at year-end 2025.

The company stated that disclosures on Restricted Group debt will come with its second-quarter Form 10-Q. The filing notes that the July 2026 cyclospora outbreak could affect sales.

02—Key points

Key Highlights

  1. GAAP diluted EPS of $3.08 (up 131% from $1.33); EPS excluding Special Items of $1.62 (up 12% from $1.44).
  2. Worldwide system sales grew 5% excluding F/X, same-store sales grew 3%, and unit count grew 5% with 1,053 gross new units in the quarter.
  3. Two definitive agreements signed June 16, 2026 to sell Pizza Hut: LongRange Capital will acquire Pizza Hut excluding Mainland China, and Yum China will acquire Pizza Hut in Mainland China.
  4. Taco Bell Division led growth, with system sales up 9%, same-store sales up 7%, and Core Operating Profit up 19%; KFC Division Core Operating Profit rose 9%.
  5. Pizza Hut Division declined, with system sales down 2% ex-F/X, same-store sales down 1%, and Core Operating Profit down 14%.
  6. Net income was $853 million versus $374 million, aided by a $359 million net deferred tax benefit from the planned Pizza Hut sale.
  7. Short-term borrowings increased to $2.813 billion from $38 million at December 31, 2025, and shareholders' deficit was $(7.107) billion at June 30, 2026.

03—Questions

Frequently Asked Questions

  1. What is the status of the Pizza Hut sale?

    The company entered into two definitive agreements on June 16, 2026. Pizza Hut excluding Mainland China will be acquired by LongRange Capital, and Pizza Hut in Mainland China will be acquired by Yum China. The Pizza Hut assets and liabilities are classified as held for sale at June 30, 2026, and the sales are expected to close at significant book gains in the quarter ending September 30, 2026.

  2. Why did GAAP EPS rise so sharply compared with EPS excluding Special Items?

    Special Items added $1.46 per diluted share in the quarter, compared with a $(0.11) impact a year earlier. The largest contributor was a Special Items tax benefit of $(449) million, which includes a $359 million deferred tax benefit tied to the planned Pizza Hut sale and $79 million of benefits from intra-entity transfers and IP valuations. Operating Special Items were $44 million, mainly third-party advisory costs for the Pizza Hut strategic options review.

  3. How did the operating divisions perform in the second quarter?

    Taco Bell grew system sales 9% ex-F/X, same-store sales 7%, and Core Operating Profit 19%. KFC grew system sales 6% ex-F/X, same-store sales 2%, and Core Operating Profit 9%. Pizza Hut declined, with system sales down 2% ex-F/X, same-store sales down 1%, and Core Operating Profit down 14%.

  4. What changed in the balance sheet and debt position?

    Short-term borrowings rose to $2.813 billion at June 30, 2026, from $38 million at December 31, 2025, while long-term debt fell to $9.462 billion from $11.872 billion. Assets held for sale were $746 million and liabilities held for sale were $262 million. The company said disclosures on Restricted Group debt will be provided in its second-quarter Form 10-Q.

  5. What risks did the company flag in the filing?

    The filing cites the July 2026 cyclospora outbreak and its potential effect on sales and the pace of recovery. It also flags the possibility that the Pizza Hut sale will not close within the expected timeframe or at all, significant exposure to China, foreign currency and geopolitical risks, and risks related to the company's indebtedness.

04—Continue

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