Yum! Brands (YUM) reported net income of US$ 1.6 billion (US$ 1,623 million) in the third quarter of 2026, compared with US$ 397 million in the same period a year earlier. The result includes a pre-tax gain of about US$ 1.7 billion from the sale of Pizza Hut. Earnings per share (EPS) were US$ 5.92, compared with US$ 1.41 in 3Q25.
The company completed the sale of Pizza Hut in mainland China to Yum China on August 7 for US$ 1.2 billion, and the sale of Pizza Hut outside mainland China to LongRange Capital on September 1 for US$ 1.2 billion net. Total revenue was US$ 2.1 billion (US$ 2,054 million), up 4%, and operating profit was US$ 2.3 billion (US$ 2,317 million), compared with US$ 666 million.
Adjusted earnings per share (non-GAAP, which excludes special items such as the gain from the Pizza Hut sale) came in at US$ 1.56, down 1% from US$ 1.58 in 3Q25. Core operating profit (which excludes special items and foreign exchange effects) was US$ 654 million, compared with US$ 684 million. Excluding Pizza Hut from both 2026 and 2025, core operating profit grew 1% in the quarter.
The unit count, excluding Pizza Hut, rose 7%, with 955 gross new units. KFC system sales grew 6%, excluding foreign exchange effects, and Taco Bell's fell 2%. Over the nine months, the company returned US$ 1.8 billion to shareholders: US$ 1.2 billion in share repurchases and US$ 616 million in dividends. The dividend declared in the quarter was US$ 0.75 per share, compared with US$ 0.71.
Yum! maintains long-term targets of 5% unit growth, 7% system sales growth and at least 8% core operating profit growth.
