YUM · 8-K · 20261103PR000195

Income Tax Rate Changes

YUM BRANDS INC · 2026-11-03 · Importance 48 · Surprise 40 · In source text

The GAAP effective tax rate was 26.1% in the third quarter, compared with 26.7% a year earlier, and 10.3% year to date, compared with 30.3%. Excluding special items, the effective tax rate was 20.9% for the quarter and 20.5% year to date. The Pizza Hut sales resulted in $466 million of third-quarter tax expense; year-to-date tax impacts also included a $359 million net deferred tax benefit associated with recognizing tax basis in entities expected to be sold. Third-quarter special-item tax expense totaled $459 million, including the tax on the divestiture gain.

Key facts

• Yum! Brands recorded $466 million of tax expense upon the Pizza Hut business sales in the quarter ended September 30, 2026. source
• Yum! Brands' year-to-date 2026 tax impacts from the Pizza Hut divestitures included a $359 million net deferred tax benefit from recognizing certain tax basis in entities expected to be sold. source
• Yum! Brands reported a third-quarter 2026 GAAP effective tax rate of 26.1% and an effective tax rate excluding Special Items of 20.9%. source

Impact estimates