Yum! Brands, the parent company of Taco Bell —as well as KFC, and The Habit Burger Grill— reported third-quarter earnings on Tuesday, beating analyst expectations, in part, from KFC’s global expansion and higher revenue from its franchises.
However, an outbreak of cyclospora linked to tainted shredded lettuce at Taco Bell, what the company considers its “ growth engine ,” affected the company’s same-store sales which dropped 4% in the U.S. for the quarter.
Despite that, it appears consumers have not lost their appetite for Taco Bell. On Tuesday’s earning call , the company’s CFO Ranjith Roy said looking ahead to the fourth-quarter, same-store sales are up about 1%, and up 3% over the last four weeks, compared same period last year.
Yum! attributed the fast bounce back to a “magic formula” that included Tuesday weekly deals for loyalty members , and limited-time offers.
“Since the end of September, Taco Bell U.S. has been outpacing the [quick-service restaurant] industry on same-store sales growth,” Yum Brands CEO Chris Turner said in an earnings statement . “Taco Bell will continue building on this momentum, with differentiated value and innovation that resonate across all consumer groups. . . [We] remain confident in our ability to deliver consistent earnings growth and create long-term shareholder value.”
Shares of Yum! Brands, Inc. ( NYSE: YUM) were down .2% at the time of this writing in afternoon trading on Wednesday.
For the quarter ending September 30, 2026, Yum! Brands reported revenue increased 3.8%, coming in at $2.05 billion with earnings per share (EPS), coming in at $1.56 adjusted, exceeding Zacks Consensus Estimate of $1.47. Net income rose to $1.62 billion, up from $397 million at the same time last year.
The company said the gains excluded the company’s divestment from Pizza Hut , which was acquired by LongRange Capital and Yum China Holdings, Inc.—and is now complete.
