Operations

5 takeaways: Yum! Brands looks to loyalty, beverages, tech to fuel growth

Following its Pizza Hut divestiture, the company is sharpening its focus on KFC, Taco Bell and Habit Burger & Grill while investing in menu innovation, digital engagement and restaurant technology.

Image: Yum! Brands

November 3, 2026 by Valerie Gritton — Editor, Pizza Marketplace

Summarize with

With Pizza Hut now out of its portfolio, Yum! Brands is entering a new phase of growth focused on modernizing its remaining brands, strengthening consumer relationships and using technology to improve restaurant performance.

During its third-quarter earnings call, executives outlined plans to upgrade core menu offerings, expand beverage platforms, build customer loyalty and leverage technology to streamline restaurant operations and enhance the guest experience.

Those priorities are part of Yum!'s Raise the B.A.R. strategy, which centers on three key areas: anticipating the needs of future consumers, accelerating restaurant unit economics to create greater value for franchisees, and unlocking the full potential of Byte by Yum! to simplify operations for team members and improve the customer experience.

During the company's Q3 earnings call, Yum! CEO Chris Turner described the company as a more focused business following the Pizza Hut transaction. Just two weeks after completing the sale, the company's top 150 leaders met to align around its Recipe for Good Growth strategy.

"As we look ahead, our Raise the B.A.R. priorities are clear, and we are energized about this next chapter for Yum!," Turner said during the call. "With iconic brands, significant global white space, and multiple levers to accelerate performance, we are well-positioned to capitalize on favorable consumption trends within our categories."

Despite the optimism, the company also navigating uneven performance across its brands, as seen throughout its Q3 earnings report, and the shuttering of its KFC and Taco Bell locations in Puerto Rico due to franchisee issues in the region. No mention was made of its Puerto Rico locations during the call nor the company's October decision to change its beverage partnership from Pepsi to Coke at all of its KFC U.S. locations.

Here are five key takeaways from the earnings report:

1. KFC balances international growth with U.S. turnaround

KFC remains a central driver of Yum!'s business, with international markets, China and the U.S. collectively representing more than 60% of the brand's global system sales, Turner said during the company's Q3 earnings call.

Turner pointed to disciplined value execution, high-impact marketing and digital growth as important contributors to the brand's performance.

In the Middle East, KFC launched its Worth It value platform across seven countries. In India, the brand is using disruptive price points, including a $1 burger meal and Double Chicken Dynamite offerings, to attract customers.

Other markets are emphasizing menu innovation, with Hot Wings launches in Canada and summer deals in Netherlands "generating a stronger consumer response," Turner said. Last week, it also opened its first KFC Muse concept in Dubai, giving consumer a glimpse into the chain's future.

KFC plans to roll out its global strategy across its top 20 markets through 2027, building on its early success in the U.K., where same-store sales grew 6% and traffic outpaced the QSR industry by five percentage points in the quarter, Turner said.

The brand also reported improved taste satisfaction scores, signaling positive early results from the strategy.

In the U.S., Turner pointed to a strong consumer response to the launch of KFC's Popcorn Chicken as the brand works to improve its domestic performance.

"More work lies ahead, and the team is taking steps to return KFC US to sustainable growth," he said.

Yum! also is expanding KFC's loyalty capabilities, with plans to bring the program to 18 of its top 20 markets by the end of the year.

"Across all of our brands, loyalty represents an important step in deepening consumer relationships and creating more opportunities to drive engagement and frequency over time," Turner said.

2. Taco Bell works to rebuild U.S. momentum

Taco Bell's sales declined during the quarter, with U.S. performance affected in part by the Cyclospora outbreak during the summer. Meanwhile, international performance provided a more positive counterpoint.

Despite the domestic challenges, Yum's CFO Ranjith Roy said the brand's ability to generate consumer interest through partnerships, cultural relevance and marketing events has held the brand strong.

Taco Bell continues to use major brand moments to create reasons for consumers to engage beyond the menu, Roy said. He cited the Nov. 2 success of Taco Bell's first Live Más Open, a nine-hole golf event, as an example of its approach to building experiences and connecting with fans.

International development is another part of the brand's growth strategy as Taco Bell opened 37 units, including its first restaurants in Germany and Croatia.

The chain also has expanded into six new markets since the third quarter of 2025, including Poland, Denmark and Paraguay.

"We're encouraged by Taco Bell's near-term expansion plans in countries such as Poland, Denmark and Paraguay. These planned market entries further build on the brand's existing momentum of having expanded into six new markets since the third quarter of last year," Roy said. "Strong and increasingly consistent international same-store sales growth from quarter to quarter, reinforces our view of Taco Bell's long-term potential outside the U.S."

3. Beverages become a bigger growth opportunity

Yum! is expanding beverage offerings across its brands as it looks to attract customers and increase engagement.

KFC's KWENCH beverage platform has launched in more than 1,000 restaurants across 10-plus markets, including six of its top 20 markets. Yum! expects it to reach 2,000 KFC locations by year-end 2026 and double that footprint by the end of 2027, with expansion planned across Australia, Canada and additional major global markets.

The company also is about to open its Live Más Café flagship location in Las Vegas. Since launching the concept, Taco Bell has introduced more than a dozen beverages that have expanded to the full Taco Bell system.

"Each sip, test, and learning is helping inform Taco Bell's broader beverage strategy as the brand works toward its goal of reaching $5 billion in beverage sales by 2030," Roy said.

4. Habit Burger focuses on value and sales

Habit Burger & Grill also is working to strengthen its sales trends through value and menu offerings.

The brand reported system-wide sales growth of 3%, with Turner highlighting the chain's new $10 Dipping Trio Box and My Value Habit menu as initiatives designed to improve its topline performance and provide customers with more accessible options.

5. AI moves from testing to broader adoption

Technology remains another key part of Yum!'s strategy, particularly as the company looks to improve restaurant operations and customer experiences.

More than 900 restaurants are now using voice AI in the drive-thru, with Yum! reporting a 6% improvement in drive-thru performance associated with the technology.

Roy said its AI pipeline is now shifting from testing to adoption, scaling and impact, signaling a greater emphasis on deploying tools that can deliver results across restaurant operations.