Taco Bell, KFC Allow Yum! Brands Stock To Soar, Despite Barely Beating Wall Street Expectations

Yum! Brands — home to chains such as Taco Bell, KFC, and Pizza Hut — has had a rather turbulent 2025 in terms of stock price, seeing a low near the $123 mark during the market close of Jan. 10 to heights reached only recently ($142.55, as of 1 p.m. ET on Feb. 6, an increase of 8.63%) based on the back of a rather mixed earnings report.

As CNBC reported, Yum was able to beat Wall Street expectations, though only barely. Earnings per share (EPS) came in at $1.61 adjusted versus $1.60 expected, and quarterly revenue figures rested at $2.36 billion against $2.35 billion projected.

Taco Bell, KFC International Producing Results While Pizza Hut and KFC’s US Operations Fall Flat

A majority of the growth drivers for Yum came from Taco Bell, which reported same-store sales growth of 5%, and KFC, which drew upon particular consumer interest in China, where same-store sales also ticked upward by 5%. Taco Bell’s healthy value perception also apparently aided the brand, particularly during a time when price-savvy American consumers are being more scrupulous with their cash spend on food away from home.

Across the board for Yum, same-store sales were driven upward by 1%. However, KFC’s U.S. stores and Pizza Hut locations exerted downward pressure on this number.

KFC’s U.S. same-store sales fell by 5%, while Pizza Hut’s tumbled by 2% nationwide. While American KFC locations are facing stiff competition from Popeye’s and rising stars in the space, such as Raising Cane’s, Pizza Hut has failed to differentiate itself in the crowded pizza segment, per The Motley Fool.

“In the U.S., sales remained under pressure due to more value competition across both the QSR industry and the pizza category,” Yum CEO David Gibbs said on the company’s conference call.

“We’ve seen that everyday value offerings such as the $7 Deal Lovers effectively drive repeat visits from existing consumers. However, to attract lighter, lapsed consumers, we must lean further into disruptive and distinctive value promotions,” he added.

Yum! Brands Enjoys ‘Cautious Optimism’ in Terms of Forward Guidance

According to The Motley Fool, Yum! Brands’ forward guidance projections sit at “cautiously optimistic,” with analysts pointing to opportunities for growth in international markets as well as capitalization on digital transformation trends as key to the company’s success.

In fact, the company has revealed plans to roll out Byte, a proprietary AI-driven piece of software for Taco Bell, KFC, and Pizza Hut. The software is aimed at reducing complexity in terms of engaging with digital orders at the kitchen level, while also making it easier for customers to place digital orders. Digital orders represented more than half of Yum’s total orders during the last quarter, including in-app orders and orders made from kiosks.

“We’re giving our franchisees a much more turnkey solution that gives us more capability in terms of how we can grow,” Gibbs said of the new tech.