Yum! Brands Q2 EPS up 7% YoY, Taco Bell same-store sales growth 4% YoY.

• Yum! Brands reports Q2 GAAP EPS of $1.33, up 7% YoY. • Q2 EPS excluding Special Items was $1.44, a 7% increase YoY. • KFC International unit growth at 7%. • Taco Bell same-store sales growth at 4%. • Over $9 billion digital system sales with record 57% digital sales mix.

Yum! Brands, Inc. (YUM) has reported its second-quarter (Q2) earnings, showcasing robust financial performance and significant growth in digital sales. The company reported a Q2 GAAP EPS of $1.33, up 7% year-over-year (YoY). Excluding special items, the EPS was $1.44, marking a 7% increase from the previous year.

Key highlights from the earnings report include:

- KFC International Unit Growth: The KFC International division experienced a 7% growth in units, reflecting strong performance in international markets.
- Taco Bell Same-Store Sales Growth: Taco Bell reported a 4% increase in same-store sales, demonstrating resilience in the competitive fast-food market.
- Digital Sales: Yum! Brands achieved over $9 billion in digital system sales, with a record 57% digital sales mix, underscoring the company's commitment to digital transformation.

The company's stock price responded positively to the earnings report, with shares trading up 1.4% on Monday, July 2, 2025. The stock closed at $147.34, reaching a 50-day moving average of $145.65 and a 200-day moving average of $146.54.

Analyst Reaction: Several equity research analysts have commented on Yum! Brands' performance. Morgan Stanley boosted their target price on Yum! Brands from $151.00 to $153.00 and gave the stock an "equal weight" rating. Redburn Atlantic raised Yum! Brands from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $145.00 to $177.00.

Institutional Investor Activity: Davis R M Inc. increased its stake in Yum! Brands, Inc. by 87.1% during the first quarter, holding 4,270 shares valued at approximately $672,000. Geode Capital Management LLC raised its holdings in shares of Yum! Brands by 2.2% during the fourth quarter, now owning 7,604,632 shares valued at $1,021,194,000. Other institutional investors, such as Northern Trust Corp and FMR LLC, also increased their holdings in Yum! Brands.

Dividend: Yum! Brands recently disclosed a quarterly dividend, which was paid on Friday, June 6, 2025. Investors of record on Tuesday, May 27, 2025, were issued a $0.71 dividend, representing a $2.84 dividend on an annualized basis and a yield of 1.9%.

Conclusion: Yum! Brands' Q2 earnings report highlights the company's strong performance and growth in both international and digital sales. The stock's positive reaction to the earnings report, coupled with analysts' optimistic ratings and institutional investors' increased stakes, indicates a favorable outlook for the company.

References:
[1] https://finance.yahoo.com/quote/YUM/
[2] https://www.marketbeat.com/instant-alerts/filing-davis-r-m-inc-raises-stock-position-in-yum-brands-inc-nyseyum-2025-08-01/