YUM · 10-Q · 2026Q2

YUM BRANDS INC

Filed 2026-08-05 · Consumer · View original filing on EDGAR

Ranked Events

• Income Tax Rate ChangesImportance 96 · Surprise 100
  The GAAP effective tax rate was negative 60.1% in the quarter versus 25.1% a year earlier and negative 22.5% year to date versus 32.4%, reflecting significant tax benefits. YUM recorded a $359 million net deferred tax…
• IRS Tax DisputeImportance 71 · Surprise 60
  Following an IRS audit of fiscal years 2013 through 2015, the IRS proposed approximately $2.1 billion of additional tax and $418 million of penalties for fiscal year 2014, plus approximately $2.3 billion of accrued…
• Capital Return ProgramImportance 71 · Surprise 60
  YUM repurchased 4.345 million shares for $2,296 million during the six months ended June 30, 2026. The May 2024 authorization had $0.4 billion of remaining capacity at June 30, 2026 and remained available through…
• Pizza Hut DivestituresImportance 71 · Surprise 60
  YUM entered definitive agreements on June 16, 2026 to sell Pizza Hut Ex-China to LongRange Capital and Pizza Hut Mainland China to Yum China Holdings. The transactions are expected to close in August 2026 and should…
• Interest Rate and Refinancing ExposureImportance 56 · Surprise 24
  YUM had $12.336 billion of debt obligations at June 30, 2026, including $2.823 billion classified as short-term borrowings and $9.462 billion of long-term debt. The Term Loan A and Revolving Facility mature on the…
• Liquidity and Debt PositionImportance 56 · Surprise 24
  YUM had $11.5 billion of total debt outstanding, excluding the Revolving Facility, finance leases and debt issuance costs and discounts, as of June 30, 2026. Approximately 96% of this debt, including interest-rate…
• Operating Profit and MarginsImportance 54 · Surprise 40
  Year-to-date operating profit increased 11.0% to $1,299 million from $1,170 million for the comparable 2025 period. Total costs and expenses increased to $2,930 million from $2,550 million, primarily reflecting higher…
• Revenue Performance and MixImportance 49 · Surprise 32
  Worldwide system sales excluding foreign currency increased 5% in the quarter and 6% year to date, while same-store sales rose 3% in both periods. KFC system sales excluding FX increased 6% in the quarter and year to…
• Geographic Revenue ConcentrationImportance 47 · Surprise 22
  United States revenue increased 14.0% to $2,306 million year to date from $2,023 million in the comparable 2025 period. The United States represented approximately 54.5% of total 2026 revenue, making it YUM’s largest…
• FX / Currency ImpactImportance 44 · Surprise 24
  Foreign currency translation favorably impacted Divisional Operating Profit by $16 million in the quarter and $41 million year to date ended June 30, 2026. Currency translation reduced reported system sales relative to…
• Segment ProfitabilityImportance 42 · Surprise 40
  Worldwide GAAP operating profit increased 5% in the quarter and 11% year to date, while core operating profit increased 5% and 6%, respectively. KFC operating profit rose 13% in the quarter and 14% year to date, and…
• Lettuce Recall and Public Health IssueImportance 34 · Surprise 42
  On July 17, 2026, Taco Bell U.S. removed certain lettuce supplied by Taylor Farms after the vendor issued a recall following communications with state and federal health officials. The lettuce was removed nationwide…
• Geographic Market CommentaryImportance 25 · Surprise 32
  KFC had 34,747 units, with 90% located outside the U.S., and its franchise same-store sales increased 2% in the quarter and year to date. Taco Bell had 9,046 units, 86% located in the U.S., and generated franchise…
• Operating Expense TrendsImportance 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…
• Distribution ChannelsImportance 10 · Surprise 6
  Pizza Hut uses multiple distribution channels, including delivery, dine-in and express locations such as airports. The system also includes restaurants operating under both the Pizza Hut and Telepizza brands,…

Revenue by Product (in millions)

Revenue by Geography (in millions)