Taco Bell and KFC Drive Yum Brands' Modest Earnings Beat and Stock Growth

Yum Brands' Q4 results show slight revenue and profit improvements, bolstered by strong international KFC sales and Taco Bell's value-driven success.

Yum Brands reported Q4 earnings of $1.61 per share, narrowly exceeding Wall Street's $1.60 estimate, with revenue of $2.36 billion slightly above projections.
Taco Bell's same-store sales grew by 5%, driven by value offerings like the Luxe Carvings Box, appealing to cost-conscious U.S. consumers.
KFC's international operations saw a 1% same-store sales increase, with strong performance in China and other global markets, offsetting a 5% decline in U.S. sales.
Pizza Hut's global same-store sales fell by 1%, with U.S. sales declining 2%, as the chain struggled to differentiate itself in a competitive market.
Digital orders now account for over half of Yum's sales, and the company is investing in AI-driven 'Byte by Yum' technology to streamline operations and improve customer experience.