Operations

Yum Brands posts strong Q2, Pizza Hut sale set for August completion

Photo: Yum! Brands

July 30, 2026

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Yum! Brands posted strong Q2 2026 results as the company continues with the sale of its Pizza Hut chain.

Yum! announced in its Q2 earnings press release that its strategic review of Pizza Hut is effectively complete. The company has entered definitive agreements to sell:

Pizza Hut outside Mainland China to LongRange Capital
Pizza Hut Mainland China to Yum China

Both transactions are expected to be complete in August, said Ranjith Roy, Yum! Brands chief financial officer, during the company's Q2 earnings conference call.

"These transactions will result in a stronger Yum! and a stronger Pizza Hut, and we look forward to supporting a smooth transition. The ability of our teams to enter into two separate transactions simultaneously while achieving strong performance in our other brands in the context of a turbulent macro environment is a testament to the strength of Yum!'s talent and culture. It also gives me tremendous confidence in our future," said Yum! CEO Chris Turner during the Q2 call.

Pizza Hut revenue for the Q2 period increased 6 percent to $254 million, up from $239 million in Q2 2025. However, the chain continued to stall behind the company's other brands as same-store sales declined 1 percent globally and U.S. system-wide sales declined 5 percent during the quarter.

Despite those challenges, Pizza Hut opened 333 new restaurants across 33 countries.

Taco Bell, KFC and Habit Burger & Grill

Coming off a cyclospora outbreak linked to its Taco Bell chain, the Yum! overall has shown no signs of slowing.

In total, the parent company of KFC, Taco Bell, Pizza Hut and The Habit Burger Grill opened 1,053 new restaurants during the year. For the Q2 period, revenue increased 12 percent to $2.169 billion, up from $1.933 billion in Q2 2025, the company announced in a press release.

The company's Q2 earnings beat Wall Street expectations, driven by Taco Bell's 9 percent increase in system-wide sales for the quarter and same-store sales increase of 7 percent. The chain opened 54 new restaurants across 15 countries as U.S. system-wide sales increased 9 percent. For the Q2 period, revenue increased 20 percent to $853 million, up from $711 million in Q2 2025.

Meanwhile, YUM!'s KFC division opened 660 new restaurant locations across 55 countries. System-wide sales for the brand grew 6 percent while same-store sales rose 2 percent for the chain. Revenue for the Q2 period, increased 9 percent to $924 million, up from $849 million in Q2 2025.

The company also unveiled a refreshed global strategy centered on boneless chicken, beverages, sauces and greater menu personalization, with plans to roll out the new concept across its top 20 markets by the end of 2027.

For The Habit Burger & Grill, system-wide sales increased 7 percent and same-store sales increased 3 percent. Six new locations also opened during the quarter. For the Q2 period, revenue increased 4 percent to $139 million, up from $134 million in Q2 2025.

Digital continues to be a bright spot for Yum and remained a major growth driver. Excluding Pizza Hut, digital system sales approached $9 billion during the quarter as more than 60 percent of system-wide sales came through digital channels.