Yum Brands Beats Earnings Estimates as Taco Bell Sales Fall

Yum Brands reported stronger-than-expected third-quarter earnings on November 3, 2026, as its Taco Bell business faced declining customer visits following a cyclospora outbreak linked to iceberg lettuce served at its US restaurants. The outbreak weakened comparable sales despite improvements in business performance later in the quarter.

According to the company's earnings report, adjusted earnings reached $1.56 per share, exceeding the Wall Street consensus estimate of $1.49. Revenue totaled $2.05 billion, matching analysts' expectations, while net sales increased 4% from the previous year.

Yum Brands recorded net income of $1.62 billion, equivalent to $5.92 per share, compared with $397 million, or $1.41 per share, in the same quarter a year earlier. The latest results included gains associated with the Pizza Hut divestiture and other items. Excluding those effects, adjusted earnings stood at $1.56 per share.

Taco Bell represented the biggest challenge to the company's comparable-sales performance. Excluding Pizza Hut, Yum Brands recorded flat same-store sales growth during the quarter, with Taco Bell reporting a 4% decline as customers temporarily reduced restaurant visits following the foodborne illness outbreak.

Yum Brands identifies Taco Bell as a key growth engine for its business.

Chief Executive Officer Chris Turner said the US business had recovered momentum after the outbreak's initial impact. The company reported that sales trends had improved since the most difficult period in July.

"Since the end of September, Taco Bell U.S. has been outpacing the quick-service restaurant industry on same-store sales growth," said Chris Turner, CEO of Yum Brands.

Company executives had previously identified the weekend of July 18 as the period when the outbreak caused its greatest sales disruption. Performance subsequently improved, with Taco Bell's international operations recording 5% same-store sales growth during the quarter.

Beyond Taco Bell, KFC delivered a 1% increase in same-store sales. Growth in China and Europe supported the chicken restaurant chain's overall performance, according to Yum Brands' quarterly results.

However, KFC encountered weaker demand in the United States, where system sales declined 6%. The US market is now the chain's third-largest, and its performance has faced pressure from increasing competition and consumers becoming more cautious about spending.

Yum Brands also completed its Pizza Hut divestiture during the quarter. The company closed the sale of Pizza Hut's mainland China business to Yum China on August 7 and transferred the remaining Pizza Hut operations to LongRange Capital on September 1.

Consequently, Yum Brands' third-quarter financial results included Pizza Hut's operations only through the respective transaction closing dates.