Yum Brands Earnings Show Pizza Hut Sold and Taco Bell US Sales Down 4%
Taco Bell sold less at its US restaurants in the third quarter of 2026, with same store sales down 4%, Yum Brands said on November 3, 2026. KFC carried the quarter instead, with operating profit up 9%, while Yum finished selling Pizza Hut.
The short answer. Taco Bell, Yum's biggest US brand, had a weak summer at home. KFC kept opening stores around the world and made more money. This page shows how each of the three brands did and what changed now that Pizza Hut is gone.
Yum Brands third quarter 2026 results at a glance
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Every company reporting the same week, with its date and time, is in StockTitan's Earnings Calendar for the Week of November 2, 2026.
Yum Brands earnings show Taco Bell US sales down 4%
Yum's profit per share was about the same as a year ago. Taco Bell slipped while KFC grew, and the Pizza Hut sale lifted the GAAP figure.
Yum reported its results before the US market opened on November 3, 2026. The quarter ended on September 30.
Profit per share excluding Special Items was $1.56, against $1.58 a year earlier. That is down 1%. Special Items are gains and costs Yum treats as one time events.
Profit per share under standard accounting rules (GAAP) was much higher, at $5.92 against $1.41. Most of the jump came from a gain of about $1.7 billion before tax on the sale of Pizza Hut.
Same store sales measure sales at restaurants open long enough to compare with a year earlier. Across the whole company, they were flat. Yum also returned $1.8 billion to shareholders so far in 2026, through dividends and buying back its own shares.
| Measure | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| GAAP EPS | $5.92 | $1.41 | Up 319% |
| EPS excluding Special Items | $1.56 | $1.58 | Down 1% |
| GAAP EPS, first nine months | $10.51 | $3.64 | Up 188% |
| EPS excluding Special Items, first nine months | $4.68 | $4.32 | Up 8% |
Source: Yum Brands third quarter 2026 earnings release, November 3, 2026. Excluding Pizza Hut from both years, Core Operating Profit grew 1% in the quarter and 6% in the first nine months.
Taco Bell sales fell in the US and grew abroad
Fewer dollars went through Taco Bell's US restaurants this summer. US same store sales fell 4%, after rising 7% in the same quarter a year earlier.
Taco Bell's US system sales, which count every dollar spent at its restaurants, fell 3%. Taco Bell's operating profit fell 5% to $255 million. Its operating margin dropped to 33.1% from 36.6%.
The release does not say whether fewer people came in or each order got smaller. Yum's list of risks in the release names a July 2026 cyclospora outbreak, a food illness, and the pace of recovery from it.
Abroad, Taco Bell did well. Its international same store sales grew 5%, and its system sales there grew 14% without currency moves. The brand opened 73 new restaurants in 16 countries.
Chief Executive Chris Turner pointed to a turn. He said that "since the end of September, Taco Bell U.S. has been outpacing the QSR industry on same-store sales growth." QSR means fast food restaurants.
| Taco Bell Division | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Restaurants | 9,102 | 8,816 | Up 3% |
| System sales | $4,292 million | $4,368 million | Down 2% |
| Same store sales growth | Down 4% | Up 7% | |
| Operating profit | $255 million | $267 million | Down 5% |
| Operating margin | 33.1% | 36.6% | Down 3.5 points |
Source: Yum Brands third quarter 2026 earnings release. Taco Bell US: system sales down 3%, same store sales down 4%, company owned restaurant margins 20.5%.
KFC carried the quarter with more restaurants
KFC was Yum's growth brand this quarter. It made 9% more operating profit, and it kept opening restaurants at a fast pace.
KFC's same store sales rose just 1%. But it ran 35,421 restaurants, 7% more than a year earlier, and opened 878 new ones across 66 countries. Turner called it record development for a third quarter.
KFC's system sales grew 6% without currency moves. Its operating profit reached $425 million, up from $388 million.
The picture was uneven by country. KFC's US system sales fell 6%, while China grew 3% and India grew 20%. The Middle East, Turkey and North Africa grew 25%.
KFC's own restaurants earned a thinner margin, 12.3%. Yum said that was mainly because of 15 lower margin test stores under a new brand called Saucy.
| KFC Division | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Restaurants | 35,421 | 32,951 | Up 7% |
| System sales | $10,046 million | $9,340 million | Up 8% (up 6% without currency) |
| Same store sales growth | Up 1% | Up 3% | |
| Operating profit | $425 million | $388 million | Up 9% |
| Operating margin | 44.8% | 44.1% | Up 0.7 points |
Source: Yum Brands third quarter 2026 earnings release. System sales growth by market excludes currency moves.
Yum sold Pizza Hut in August and September
Pizza Hut is no longer part of Yum. Yum sold it in two pieces during the quarter.
On August 7, Yum sold Pizza Hut in mainland China to Yum China. On September 1, it sold the rest of Pizza Hut to LongRange Capital.
Because Pizza Hut counted only until those dates, its operating profit in the quarter fell 41%. Yum now runs KFC, Taco Bell and Habit Burger & Grill. Habit's same store sales were flat.
Without Pizza Hut, Yum's restaurant count grew 7%, with 955 new restaurants in the quarter. Digital sales passed $9 billion, 64% of the total.
Yum gave no new forecast for 2026 in the release. It kept its long term targets, first set in 2022, of 5% unit growth, 7% system sales growth and at least 8% Core Operating Profit growth a year on average.
Frequently asked questions
How did Yum Brands do in the third quarter of 2026?
Profit per share excluding Special Items was $1.56, against $1.58 a year earlier. Same store sales were flat across the company. GAAP profit per share was $5.92, lifted by the Pizza Hut sale.
Why did Taco Bell sales fall?
Taco Bell US same store sales fell 4% in the quarter. The release does not give a reason. It lists a July 2026 cyclospora outbreak among its risks, and the chief executive said US sales have beaten the fast food industry since the end of September.
Does Yum Brands still own Pizza Hut?
No. Yum sold Pizza Hut in mainland China to Yum China on August 7, 2026, and the rest of Pizza Hut to LongRange Capital on September 1, 2026.
How did KFC do this quarter?
KFC grew operating profit 9% to $425 million. It opened 878 new restaurants, and its same store sales rose 1%. In the US, KFC system sales fell 6%.
When did Yum Brands report earnings?
Yum released its third quarter 2026 results before the market opened on November 3, 2026, and held a call with analysts at 8:15 a.m. Eastern Time the same day.
Sources
The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.