Yum! Brands reports Q2 growth and KFC expansion

Yum! Brands reported second-quarter 2026 results (excluding Pizza Hut) showing a 7% increase in system sales, a 6% increase in units, and an 8% rise in core operating profit. The company's KFC brand saw significant expansion, opening 660 gross restaurants across 55 markets, representing 7% unit growth.

Growth was driven largely by Taco Bell in the United States, though a July food-safety issue is expected to impact third-quarter sales and margins. The company is also moving forward with a Pizza Hut divestiture, which is projected to generate approximately $2.3 billion in net proceeds to be used for debt repayment, share repurchases, and brand growth.

Separately, Yum China shares experienced a 4.2% decline during recent trading, despite the company recently beating quarterly earnings estimates with $3.14 billion in revenue and an EPS of $0.70. Analysts maintain a generally positive outlook on Yum China, with several firms issuing buy ratings and a consensus target price near $59.21.