YUM · 10-Q · 2026Q2 · Full report

Operating Expense Trends

YUM BRANDS INC · 2026-08-05 · Importance 20 · Surprise 24

Corporate and Unallocated general and administrative expense increased in the quarter and year to date because of Pizza Hut strategic-review costs, partly offset by the prior-year resource-optimization and headquarters-consolidation costs. Taco Bell G&A increased because of higher headcount, digital and technology spending, and legal and professional fees. Pizza Hut G&A increased from acquired-restaurant operations and annual incentive compensation, partly offset by lower professional and legal expenses. KFC quarterly G&A declined because of lower professional fees, while year-to-date G&A was flat excluding foreign currency.

Key facts

• The year to date ended June 30, 2026 includes income of approximately $ million related to a credit card interchange fee litigation settlement recorded to Unallocated Other income (note states amount but redacted as $ million) source
• Unallocated Refranchising gain (loss) was $(88) million for the quarter and $(85) million year to date. source
• Taco Bell Division had positive Company restaurant margin percentage changes of 1.6 ppts quarter and 1.4 ppts year to date driven by same-store sales growth. source
• Charges associated with Brand HQ Consolidation recorded approximately $10 million during the quarter ended June 30, 2025 and approximately $1 million and $17 million for the years to date ended June 30, 2026 and 2025, respectively. source
• Charges of $5 million and $7 million were recorded during the quarter and year to date ended June 30, 2025, respectively, related to German acquisition and Turkey termination-related costs recorded to Corporate and unallocated G&A expenses. source