YUM · 10-Q · 2026Q3 · Full report

Operating Profit and Margins

YUM BRANDS INC · 2026-11-06 · Importance 77 · Surprise 82 · Matches filing data

Excluding Pizza Hut, core operating profit grew 1% in the third quarter and 6% year to date, while reported worldwide operating profit increased 248% and 97%, respectively, primarily reflecting the $1.683 billion Pizza Hut divestiture gain. KFC operating profit increased 9% for the quarter and 13% year to date; growth excluding FX reflected same-store sales and unit growth, partly offset by restaurant costs and higher bad-debt expense. Taco Bell operating profit declined 5% for the quarter but increased 10% year to date. Taco Bell’s quarterly company restaurant margin fell 3.5 percentage points to 20.2%, with higher labor, other restaurant costs, beef inflation and lower same-store sales contributing to the decline; KFC’s quarterly margin fell 1.4 points to 12.3%, driven by higher costs and lower margins at new builds, including Saucy restaurants.

Key facts

• YUM's 2026 GAAP Operating Profit included an approximately $1.7 billion pre-tax gain from the Pizza Hut sales. source
• Excluding Pizza Hut in both years, YUM Core Operating Profit grew 1% in the quarter and 6% year to date ended September 30, 2026. source
• Taco Bell Division quarterly company restaurant margin declined 3.5 percentage points to 20.2%, compared with 23.7% in the prior-year quarter. source
• KFC Division operating profit increased in the quarter and year to date, excluding FX, driven by same-store sales and unit growth, partly offset by higher restaurant operating costs and bad debt expense. source

Impact estimates