YUM Gears Up for Q2 Earnings: Taco Bell, KFC Strength to Aid Results

YUM! Brands, Inc. YUM is scheduled to report second-quarter 2025 results on Aug. 5, before the opening bell. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 0.8%.

YUM’s Q2 Estimates

The Zacks Consensus Estimate for earnings per share is pinned at $1.45, representing a 7.4% increase from the prior-year quarter. In the past 30 days, the consensus estimate for current-quarter earnings has remained stable. The Zacks Consensus Estimate for revenues is pegged at $1.93 billion, representing a 9.5% increase from $1.76 billion in the prior-year quarter.

Factors to Note Ahead of YUM’s Q2 Results

YUM! Brands’ revenue growth in the second quarter is likely to have been driven by the standout performance of its two core growth engines, Taco Bell U.S. and KFC International. The company’s top line is also likely to have benefited from rapid digital expansion across its portfolio. Investments in its proprietary Byte by Yum! Platform, especially in kiosks, app personalization and back-of-house automation, might have helped streamline consumer experiences and drive higher order values. 

Moreover, AI-powered marketing and loyalty engagement initiatives, such as the “build your own Luxe Box” campaign and exclusive fan events like Live Mas Live, are likely to have helped deepen brand loyalty and generate incremental traffic.

Additionally, new beverage-led concepts such as Taco Bell’s Live Mas Cafe and KFC’s Quench pilot, particularly among younger demographics, bode well for the company. Early success from these initiatives, as well as the buzz around the bold new Saucy by KFC concept, is likely to have added to top-line growth. Marketing collaborations and menu innovation, including global items like the Double Down Zinger, Crispy Naan and Zinger Nachos, are expected to have further boosted consumer engagement across markets, contributing to higher same-store sales and check averages.

Our model predicts same-store sales to demonstrate growth of 2.2% year over year in the to-be-reported quarter.

In second-quarter 2025, our model estimates KFC, Taco Bell and Habit Burger revenues to increase 11.2%, 7.3% and 16.3%, respectively, from the year-ago levels to $797.6 million, $714.9 million and $164 million. Moreover, we expect Pizza Hut revenues to increase 1.8% from the prior-year levels to $243.2 million.

Yum! Brands’ bottom-line performance is expected to have been aided by disciplined cost management, operational efficiency and improved store-level margins.

What the Zacks Model Unveils About YUM

Our proven model predicts an earnings beat for Yum! Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

YUM’s Earnings ESP: Yum! Brands has an Earnings ESP (difference between the Most Accurate Estimate and the Zacks Consensus Estimate) of +1.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. 

YUM’s Zacks Rank: Yum! Brands currently carries a Zacks Rank #2.

Other Stocks With the Favourable Combination

Here are some other companies in the Zacks restaurants sector that, according to our model, these, too, have the right combination of elements to post an earnings beat in the quarter to be reported.

Dutch Bros BROS currently has an Earnings ESP of +1.62 and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dutch Bros’ earnings beat estimates in each of the trailing four quarters, the average surprise being 92.37%. For the second quarter of 2025, Dutch Bros’ earnings are expected to decrease 5.3%. 

Brinker International EAT currently has an Earnings ESP of +0.93 and a Zacks Rank of 3.

With the average surprise of 24.52%, Brinker’s earnings beat estimates in three of the trailing four quarters and missed once. Brinker’s earnings for the second quarter of 2025 are expected to increase 51%

McDonald's MCD currently has an Earnings ESP of +0.43 and a Zacks Rank of 3.

With the average negative surprise of 0.22%, McDonald's earnings beat estimates in three of the trailing four quarters and missed once. McDonald's earnings for the second quarter of 2025 are expected to increase 6.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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