The Pizza Hut divestiture is complete, removing a drag on results, but Taco Bell's 4% same-store sales decline is a notable negative. KFC's 7% unit growth and 8% core profit growth remain strong. Monitor the next quarter for the post-divestiture earnings base and whether Taco Bell's U.S. momentum improves as management claims.
How the stock moved after the report
NEUTRAL VIEWSTOCK ABOVE ENTRY AT T+1- T+0 · Nov 3 $157.01entry
- T+1 · 10h ago +5.92%α +4.27% · $166.31
- T+5 · in 6d Pending
- T+20 · in 28d Pending
- T+60 · in 3mo Pending
Price Chart
How similar events traded
Executive Summary
Yum! Brands reported Q3 2026 EPS excluding Special Items of $1.56, slightly below the prior year's $1.58, and total revenue of $2.054B, up 4% YoY. The quarter was dominated by the completed Pizza Hut divestiture, which generated a $1.7B pre-tax gain, while ongoing operations showed mixed performance: KFC core operating profit grew 8% but Taco Bell's same-store sales declined 4% and its core operating profit fell 4%. Excluding Pizza Hut, core operating profit grew only 1%.
Key Financial Metrics
Key Facts
- Q3 2026 EPS excluding Special Items was $1.56, down 1% from $1.58 a year ago
- Total revenue was $2.054B, up 4% from $1.979B a year ago
- GAAP EPS was $5.92, including a $1.7B pre-tax gain from the Pizza Hut divestiture
- KFC Division system sales grew 6% ex-FX, same-store sales grew 1%, operating profit grew 8% ex-FX
- Taco Bell Division system sales declined 2% ex-FX, same-store sales declined 4%, operating profit declined 4% ex-FX
- Pizza Hut Division operating profit declined 41% (included only through the sale dates in August/September)
- Excluding Pizza Hut from both periods, core operating profit grew 1% for the quarter
- Yum! completed the sale of Pizza Hut in two transactions for total proceeds of $2.4B
- Year-to-date, the company returned $1.8B to shareholders through dividends and share repurchases
- KFC opened 878 gross new restaurants in the quarter, a record for Q3
Financial Impact
EPS ex-Special Items of $1.56 vs $1.58 prior year (-1%); total revenue $2.054B vs $1.979B (+4%); KFC core operating profit +8% ex-FX; Taco Bell core operating profit -4% ex-FX
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| KFC Division | $948.0M | +8.0% |
| Taco Bell Division | $770.0M | +5.0% |
| Pizza Hut Division | $202.0M | -16.0% |
| Habit Burger Grill Division | $134.0M | 0.0% |
Risk Factors
- Taco Bell U.S. same-store sales declined 4%, a sharp reversal from +7% a year ago
- KFC company-owned restaurant margins fell 140 bps to 12.3%, partly due to Saucy brand test stores
- EPS ex-Special Items declined 1% year-over-year, indicating flat underlying earnings power
- Foreign currency translation favorably impacted divisional operating profit by $7M in the quarter, which may reverse
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001041061-26-000195 |
| Document: yum-20261103.htm | 0001041061-26-000195 |
| Document: 0001041061-26-000195-index-headers.html | 0001041061-26-000195 |
| Document: 0001041061-26-000195-index.html | 0001041061-26-000195 |
| Document: 0001041061-26-000195.txt | 0001041061-26-000195 |
| 8-K Data (Synthetic) | 0001041061-26-000195 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 4, 2026 today | 144 | No price | awaiting T+60 | awaiting T+60 | No price |
Nov 4, 2026 today | Insider Cluster | $167.59 | awaiting T+60 | awaiting T+60 | $166.31 (−0.76%) |
Nov 4, 2026 today | 3 | $163.64 | awaiting T+60 | awaiting T+60 | $166.31 (+1.63%) |
Nov 3, 2026 1d ago | 8-K | $157.01 | awaiting T+60 | awaiting T+60 | $166.31 (+5.92%) |
Oct 30, 2026 5d ago | 144 | $155.40 | awaiting T+60 | awaiting T+60 | $166.31 (+7.02%) |
Oct 26, 2026 9d ago | Institutional Cluster | $149.47 | awaiting T+60 | awaiting T+60 | $166.31 (+11.27%) |
Oct 16, 2026 19d ago | SC 13G/A | $150.51 | awaiting T+60 | awaiting T+60 | $166.31 (+10.50%) |
Aug 21, 2026 10w ago | 8-K | $152.99 | awaiting T+60 | awaiting T+60 | $166.31 (+8.71%) |
Aug 7, 2026 12w ago | 8-K | $150.76 $155.40 | ▲ +3.08% | ▲ +5.35% | $166.31 (+10.31%) |
Aug 7, 2026 12w ago | Press Release | $150.76 $155.40 | ▲ +3.08% | ▲ +5.35% | $166.31 (+10.31%) |
US Market Status
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