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November 27, 2025 • 3 min read
Yum! Brands, the global fast-food conglomerate behind KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill, recently released its financial results for the third quarter of 2025. Let's dig into the numbers from their latest 10-Q filing to see how the company is performing.
Overall, Yum! Brands cooked up a solid quarter, with total revenue climbing 8% year-over-year to nearly $2.0 billion. This growth translated to the bottom line, with net income rising 4% to $397 million. However, a closer look at its brand portfolio reveals a story of diverging fortunes.
The clear standouts this quarter were Taco Bell and KFC, which continue to be the primary growth engines for the company.
Taco Bell delivered a stellar performance, posting an impressive 9% increase in system-wide sales (excluding foreign currency effects) and a 7% rise in same-store sales. This strong consumer demand boosted its divisional operating profit by 7% to $267 million.
KFC, the largest profit contributor, also showed robust health. The chicken giant saw its system sales grow by 6% and its operating profit jump by a remarkable 16% to $392 million, demonstrating its enduring global appeal.
While the chicken and tacos were flying off the shelves, Pizza Hut faced continued headwinds. The division reported a 1% decline in both system-wide and same-store sales. This sluggish performance directly impacted profitability, causing its divisional operating profit to fall by 8% to $84 million. The Habit Burger & Grill division also remains in an investment phase, posting a small operating loss of $2 million for the quarter.
To visualize how Yum! Brands' revenue flows through its operations to generate profit, the following diagram breaks down the income statement for the third quarter.
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The 'Unallocated' streams in the chart represent corporate-level adjustments not assigned to a specific brand. The negative unallocated revenue reflects a corporate charge related to franchise revenues, while the unallocated cost of revenue is a balancing item for corporate-level restaurant expenses.
Yum! Brands' Q3 results highlight the power of its diversified brand portfolio. The outstanding performance of Taco Bell and the consistent strength of KFC are more than compensating for the persistent struggles at Pizza Hut. For investors, the key takeaway is this portfolio effect in action. The company's future success will hinge on its ability to maintain momentum in its star brands while executing a successful turnaround for Pizza Hut.
Last updated: November 27, 2025