YUM! Brands Shares Plummet 5.1% as Q2 Earnings Miss and U.S. Sales Slump Send Trading Volume to 144th on NYSE

YUM! Brands (YUM) closed 2025-08-05 with a 5.10% decline, marking its largest single-day drop in recent months. Trading volume surged 47.8% to $730 million, ranking 144th on the NYSE. The stock’s performance followed a mixed Q2 earnings report where adjusted EPS of $1.44 fell short of expectations by 1.37%, and revenue of $1.93 billion missed forecasts by $10 million. The earnings miss, coupled with weak U.S. same-store sales at KFC and Pizza Hut, drove investor caution despite digital sales reaching 57% of total revenue and 3% global unit growth.

Key challenges emerged in U.S. operations: KFC and Pizza Hut reported 5% declines in same-store sales, attributed to “insufficient value messaging” and competition. Executives highlighted KFC’s leadership reshuffle, with Scott Mezvinsky appointed CEO in March and Catherine Tan-Gillespie as U.S. president in April. Taco Bell, however, outperformed with 4% global same-store sales growth, fueled by Crispy Chicken product launches and digital innovation. Digital transactions, now 57% of system sales, rose 18% year-over-year, signaling resilience in tech-driven engagement.

Leadership transition added uncertainty as outgoing CEO David Gibbs stepped down, succeeded by CFO Chris Turner. Management emphasized strategic focus on Taco Bell’s digital expansion and AI-driven marketing, with Live Mas Cafe set to scale to 30 U.S. locations by year-end. Despite a 160-basis-point decline in restaurant-level margins to 16.3%, the company maintained full-year core operating profit growth guidance at 8%, supported by international expansion and asset-light franchising. Analysts noted mixed sentiment, with StreetAccount expecting 5.2% same-store sales growth for Taco Bell but weaker performance at KFC and Pizza Hut.

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