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Yum! Brands, Inc. (YUM) Presents at Barclays 19th Annual Global Consumer Staples Conference Transcript

Lower-income consumers have been pulling back on spending. But the impact on quick-service restaurant stocks hasn’t been the same. In the past, investors may have looked at food quality or brand loyalty to separate winners and losers when sales are down. That doesn’t fit in 2026. The real divide is structural, built into each company's business model.

Asset-light global franchisors collect royalties on system-wide sales rather than owning the restaurants themselves. That means a U.S. consumer pullback barely touches their earnings, because franchisees absorb the direct cost pressure. International diversification adds another layer of insulation, since growth abroad can offset softness at home.

Operators with heavier capital exposure and concentrated domestic footprints don't get that cushion. When traffic slows, they feel it in restaurant margins and same-store sales. This is exactly why Restaurant Brands International NYSE: QSR and Yum! Brands NYSE: YUM have held up while the broader sector has wobbled.

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But the model alone doesn't guarantee insulation. McDonald's NYSE: MCD is also franchise-heavy, yet it's still struggling domestically. That wrinkle is the real story. The market has been pricing this sector on a simple "franchise good, company-owned bad" thesis. The second quarter proved why that thesis is incomplete.

Restaurant Brands International Shows the Strength of the Franchise ModelQSR delivered a strong second quarter, with system-wide sales up 6.4% and same-store sales growth of 3.8% globally. International system sales jumped 10.7%, which helped offset softer U.S. sales. Adjusted earnings per share (EPS) climbed 12.9% year-over-year, and organic adjusted operating income grew 6.7%.

Restaurant Brands International Today

QSR

Restaurant Brands International

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The standout was Burger King U.S., up 8.5% in comparable sales as the "Reclaim the Flame" turnaround plan gains traction. Management credited disciplined marketing and franchisee-level execution rather than heavy discounting. Tim Hortons posted flat same-store sales in Canada but has now strung together 21 consecutive quarters of positive growth internationally, an underappreciated streak.

Not everything worked. Popeyes remains the weak link, with U.S. same-store sales down 5.2% as fried chicken competition intensifies and value-conscious diners trade down further. Shares dipped slightly on the report despite the beat, evidence that the market is still digesting whether Burger King's momentum can offset Popeyes' drag. For now, QSR's royalty-heavy structure means even a struggling brand doesn't meaningfully dent consolidated earnings.

Yum! Brands Benefits From a More Focused Business StrategyYUM's Q2 2026 earnings report was similar to that of QSR, but with a sharper edge. System sales grew 7% excluding Pizza Hut, and same-store sales rose 4% on that same basis. Taco Bell U.S. posted 7% comparable sales growth with restaurant-level margins expanding 170 basis points, a combination that signals both demand and pricing discipline. KFC added 660 gross new stores in the quarter across 55 markets, with the Middle East alone crossing 1,500 locations.

Yum! Brands Today

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The bigger move is strategic. The company finalized agreements to divest Pizza Hut in August 2026. That leaves Yum! more concentrated in its two strongest brands and less exposed to a segment that's been a persistent underperformer. CEO Chris Turner called it the company's "next chapter" as a more focused organization.

Digital sales hit $17 billion across the first half of 2026, up 25% year-over-year, another sign of a franchise system converting technology investment into real same-store sales lift rather than just marketing spend. Core operating profit grew 8% for the quarter, even after absorbing costs tied to the Pizza Hut separation process.

Why McDonald's Is Lagging Despite Its Franchise-Dominated StructureMcDonald's is where this thesis gets interesting. As a nearly all-franchised business with global scale, McDonald's should theoretically show the same insulation as QSR and Yum!. Instead, the company’s Q2 2026 showed U.S. same-store sales growth slowed sharply to 0.8%, and were down 2.5% year over year (YOY), with guest counts actually declining.

McDonald's Today

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The culprit wasn't the franchise model. It was execution. Only 60% to 65% of the U.S. system had consistently implemented the company's new under-$3 value menu, and a pullback in national digital offers alienated loyalty members at the same time. CEO Chris Kempczinski was candid about the miss, and the company named a new U.S. president, Skye Anderson, effective immediately.

International segments told a different story. Markets outside the U.S. posted comparable sales growth of 1.5% to 1.9%, reinforcing that geographic diversification, not just the franchise structure itself, is doing real work to protect consolidated results. McDonald's global comparable sales still rose 1.3%, and adjusted EPS grew to $3.38, beating expectations.

The Key Lesson for Investors in Restaurant StocksThe market has been treating restaurant stocks as a single undifferentiated basket, exposed to the same consumer pullback. That's the perception. The fundamentals say something more precise: franchise economics provide real protection, but they're not a substitute for international diversification and consistent execution. QSR and Yum! have both. McDonald's, for now, only has one, and its stock is paying the price until execution catches back up to the model's structural advantages.

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The fast-food industry is facing a severe reality check. Menu price hikes are pricing out the core lower-income demographic, causing a decline in foot traffic across the sector. Yet amid this crisis, one operator just executed a masterclass in corporate defense.

Yum! Brands Today

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Yum! Brands NYSE: YUM successfully offloaded its underperforming Pizza Hut asset outside Mainland China for about $1.5 billion.

By allowing a private equity buyer to absorb the legacy brand's looming turnaround risk, Yum! Brands quietly transitions into a high-return, pure-play franchising model.

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With Yum! Brands shielding its remaining portfolio behind an approximately $4 billion stock buyback, investors are witnessing a strategic pivot deployed right at the onset of brutal macro headwinds.

Shedding the stagnant pizza chain fundamentally changes the business's financial trajectory, setting the stage for a shift in how Wall Street values Yum! Brands stock.

Addition by Subtraction: Cutting the CrustCorporate restructuring often looks messy on the surface, but the financial mechanics underneath reveal a clear path to value creation. The sale of the Pizza Hut brand to LongRange Capital serves as a textbook example of addition by subtraction. Factoring in the separate Mainland China transaction, the total Pizza Hut carve-out proceeds reach approximately $2.7 billion.

For years, Pizza Hut operated as a chronic drag on system-wide metrics, actively suppressing the growth generated by Taco Bell and KFC. Public markets historically penalize parent companies burdened by capital-intensive turnaround projects.

Investors saw this reflected in the numbers, with the return on equity for Yum! Brands recently dipping to -24.57%. That figure signals severe capital inefficiency prior to the asset sale. By transferring the operational weight of Pizza Hut to private equity, Yum! Brands protects its consolidated margin profile. Private equity buyers can pursue extensive operational restructuring without the immediate pressures of quarterly public-market reporting.

For Yum! Brands, removing this drag clears the path for a re-rating of its stock. The business is now heavily concentrated in higher-margin, faster-growing assets. Its streamlined franchising model will require less overhead, allowing management to deploy capital much more aggressively toward concepts that actually drive unit growth.

Starving the Crisis: Insulating Taco Bell and KFCInvestors should connect the macro environment to the catalyst to understand why this sale is so critical right now. The broader quick-service restaurant space is experiencing significant demand reduction. Fast-food operators long believed their business models were recession-resistant, leaning on aggressive pricing power to offset inflation. That strategy has hit a wall. Anecdotal channel checks reveal localized traffic drops, with some Taco Bell locations reporting foot traffic down by about half in late summer.

Coinciding with the ownership change, Pizza Hut chief executive officer Aaron Powell abruptly resigned, leaving Eduardo Luz to serve as interim chief executive. While executive transitions regularly accompany private equity buyouts, a sudden departure at a flagship property highlights the internal volatility and execution risk that legacy chains face. The consumer base is retreating. Short interest in Yum! Brands rose over 14% by mid-August as retail skepticism grew.

However, the retail panic misses the genius of the timing. Management pegged the demand trends early. Selling the pizza chain right as traffic falls off a cliff helps to insulate the surviving KFC and Taco Bell portfolios from the heaviest capital requirements. Yum! Brands traded an operational headache for a substantial influx of liquidity, passing the execution risk of a turnaround to LongRange Capital just as the broader consumer environment deteriorates.

Serving Up Yield: A $4B Capital DietYum! Brands' leaner operational model generates excess free cash flow, which management is routing back to shareholders. The board of directors recently authorized an approximately $4 billion share repurchase program. At current valuations, this provides the capacity to retire roughly 9.4% of outstanding equity.

93rd Percentile

Moderate Buy

14.9% Upside

Healthy

Strong

0.97 Selling Shares

7.86%

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When a company shrinks its share count by nearly a tenth, it artificially boosts earnings per share, even if top-line revenue suffers. This buyback serves as a structural defense mechanism against current macro headwinds.

Income investors also gain a highly predictable asset. Yum! Brands maintains an eight-year consecutive dividend growth streak, boasting an 8.6% five-year annualized growth rate. Supported by a highly conservative payout ratio of 37%, the annual dividend provides a sustainable yield of near 2%. This capital return profile remains highly durable despite the broader industry volatility.

While retail traders and short sellers seem to be fixating on the executive departure and recent insider selling, institutional money is rotating into the stock. Recent filings show concentrated block buying by multiple institutions. These sophisticated allocations indicate a strong long-term appetite for Yum! Brands' streamlined corporate structure.

Digesting Yum! Brands New StrategyThe fast-food industry will likely face prolonged discounting wars as operators scramble to win back alienated customers. Margin compression across the sector appears inevitable as companies sacrifice pricing power for transaction volume. However, companies that proactively shed underperforming assets and aggressively shrink their equity float position themselves to survive the downturn and emerge significantly stronger.

Cautious investors may prefer to wait for a broader market pullback before taking a position, while those with a long-term horizon might consider adding Yum! Brands to their watchlists as the financial benefits of the streamlined franchising model take effect.

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STAMFORD, Conn.--(BUSINESS WIRE)--LongRange Capital (“LongRange”), a private equity firm with a customer-centric and operationally oriented approach to building and growing businesses, today announced that it has completed its acquisition of Pizza Hut, excluding Mainland China (“Pizza Hut”), from Yum! Brands, Inc. (NYSE: YUM) (“Yum!”). Founded in 1958, Pizza Hut is a global restaurant leader with approximately $10 billion in system-wide sales. For nearly seven decades, the Pizza Hut brand has d.

Dallas, Texas--(Newsfile Corp. - August 26, 2026) - Yum! Brands (NYSE: YUM): Stonegate Capital Partners initiates coverage on Yum! Brands (NYSE: YUM). Yum!'s 2Q26 provides evidence that the post-Pizza Hut earnings model is becoming increasingly centered on Taco Bell's U.S. growth and KFC's international development runway. Ex-Pizza Hut, system sales increased 7%, units 6%, same-store sales 4%, and Core Operating Profit 8%. The July food safety issue creates a near-term Taco Bell interruption, but we view the impact as temporary. Sales trends have improved from the July 18 low, online sentiment has returned to pre-issue levels, and brand-love measures remain intact. The quarter also reinforces the broader operating model, with stronger restaurant-level performance supporting franchisee returns, faster unit development, and growth in Yum!'s recurring royalty base.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

Ex-Pizza Hut results highlight the earnings profile of the remaining portfolio, with Ex-Pizza Hut 2Q26 system sales increasing 7%, units 6%, same-store sales 4%, and Core Operating Profit 8%. Taco Bell remains the primary U.S. growth engine, while the July food-safety issue creates a near-term interruption that management currently expects to pressure 3Q sales and margins. KFC provides the largest long-term development opportunity, supported by attractive franchisee economics and significant international whitespace. The division opened 660 gross restaurants across 55 markets in 2Q26, grew units 7%, and continues to target higher AUVs and same-store sales alongside an estimated 20,000-unit whitespace opportunity. The Pizza Hut divestiture should leave YUM increasingly concentrated around its higher-growth, predominantly franchised KFC and Taco Bell businesses while providing approximately $2.3B of expected aggregate net proceeds. We expect revolver repayment and substantial share repurchases to complement continued unit development and royalty growth across the remaining portfolio.

Click image above to view full announcement.

About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311692

Source: Stonegate, Inc.

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LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. Declares Quarterly Dividend of $0.75 Per Share.

• The national campaign launches with ad spots featuring Allen and Hutty, the brand mascot
• Pizza Hut is sponsoring QBs everywhere this season, offering a chance to win free pizza for
life from tailgate heroes to professional players whose gameday traditions always started
with the Hut
• Fans can enjoy two deals from the brand, including a $10 large 3-topping pizza and the first-
ever Triple Treat Box that can be upgraded with PEPSI designed for football season

, /PRNewswire/ -- For generations, one word has kicked off every football play, from Hall of Famers to first graders in the backyard: "Hut." This season, Pizza Hut is setting the record straight on what really comes first and reminding fans everywhere that gameday starts with the Hut.

PIZZA HUT TEAMS UP WITH PEPSI® AND JOSH ALLEN TO REMIND FANS GAMEDAY STARTS WITH THE HUT

PIZZA HUT TEAMS UP WITH PEPSI® AND JOSH ALLEN TO REMIND FANS GAMEDAY STARTS WITH THE HUT To spread the word, Pizza Hut has teamed up with PEPSI® and quarterback Josh Allen, one of the game's most electrifying stars and one of the players saying "hut" more than almost anyone else on the field each week. The brand-new national campaign reminds fans that gameday starts with a HUT but is complete with a Triple Treat Box® Gameday Edition that can be upgraded with a 2 liter of PEPSI for $2. Last year, Pizza Hut teamed up with the GOAT of QBs and this year, the brand is going bigger: celebrating every quarterback in America on and off the field who has ever called "Hut" on gameday*.

Whether the team's postgame meals were under a red roof or tailgate tables weren't complete without stuffed crust, fans of all ages had Pizza Hut at the center of game day traditions on and off the field. From pregame preparer to rec league captain to the friend who always hosts, Pizza Hut is thanking QBs for a lifetime of play calls with a chance to win free pizza for life**.

Fans can head to pizzahut.com/gamedaystartswithhut and upload a video of yourself saying "HUT" in action – snapping the ball, kicking off the watch party, whatever your version of the snap count looks like. Tell us in a few words why gameday starts with a HUT for you. 

The campaign coincides with three tailgate-ready additions to the Pizza Hut lineup, each available now at Pizza Hut restaurants nationwide:

The Big Hut Deal***: A large pizza with three toppings, on your choice of Hut Crust, for just $10. The NEW Triple Treat Box GameDay Edition****: The first gameday-built box of its kind, featuring two pizzas, breadsticks, and cinnamon sticks starting at $21.99, and fans can upgrade with a 2 litre of PEPSI for $2. Enough to feed the whole crew from kickoff to overtime. Limited edition Flick Football pizza boxes: All medium and large pizzas will come in a box that includes an addition that can be cut out and turned into field goal posts - when two boxes are placed back-to-back, it creates an entire football field. Available while supplies last. "Josh Allen is exactly the kind of quarterback we want in our corner on gameday," said Melissa Friebe, Chief Marketing Officer at Pizza Hut U.S. "He brings the energy, the personality and, of course, plenty of 'Huts' to the field. This season, we're bringing that same spirit to QBs everywhere – from the pros to the person who always calls the plays, runs the tailgate and makes sure the pizza gets there. Every gameday has a QB, and Pizza Hut is sponsoring them all."

Whether fans are hosting a backyard full of friends or holding down a folding chair solo, Pizza Hut is making sure the huddle always starts the same way: Pizza first.

The $10 Large 3-Topping Pizza and the new Triple Treat Box are available now for a limited time at participating Pizza Hut locations nationwide, in-restaurant, online and through the Pizza Hut app.

*PIZZA HUT FEEDS QB SWEEPSTAKES NO PURCHASE NECESSARY. Open to legal residents of the 50 U.S./D.C., 18+ and age of majority, who are Hut Rewards members. Ends 8:00 p.m. ET 10/24/26. Limit one (1) entry per person. Three (3) prizes available, each consisting of 1,000,000 Hut Crust Reward Points (ARV $10,800 each). Odds depend on eligible entries received. Void where prohibited. Official Rules: fooji.info/PizzaHutRules. Sponsor and Administrator: Fooji, Inc.

**Lifetime's worth of pizza to be awarded in 1,000,000 Hut Rewards points.

***Limited time offer at select participating locations only. Max 3 toppings. Additional charge for Original Stuffed Crust®, Pan, or extra cheese/toppings. Product availability, prices & participation vary. Priced higher in some locations, including CA. Taxes, tip, and delivery fees not included. Exclusions apply.

****Limited time only. Includes 2 medium 1-topping pizzas. Additional charge for more than 1 pizza topping, Pan & extra cheese. Additional charge for select dessert options & cheese stick upgrade. Product availability (including special packaging), prices & participation vary. Priced higher in some locations, including CA. Taxes, tip & delivery fees not included. 

About Pizza Hut® 
Pizza Hut, a subsidiary of Yum! Brands, Inc. (NYSE: YUM), was founded in 1958 in Wichita, Kansas, and is a global leader in the pizza category with nearly 20,000 restaurants in more than 110 markets and territories. The brand has earned a reputation as a trailblazer in innovation with the creation of icons like Original Pan® and Original Stuffed Crust® pizzas. In 1994, Pizza Hut pizza was the very first online food order, and today Pizza Hut continues leading the way in the digital and technology space with over half of transactions worldwide coming from digital orders. In addition, Pizza Hut has Hut Rewards®, the brand's loyalty program in the U.S. that offers points for every dollar spent on food any way you order. Leveraging its global presence, Pizza Hut also works to positively impact restaurant employees, the communities they serve and the environment through commitments across three priority areas: More Equity, Less Carbon and Better Packaging.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $92 billion in net revenue in 2024, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.PepsiCo.com.

Media Contact:
ALISON BROD MARKETING COMMUNICATIONS
[email protected]

SOURCE Pizza Hut

EP Wealth Advisors LLC purchased a new position in Yum! Brands, Inc. (NYSE:YUM – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 14,820 shares of the restaurant operator’s stock, valued at approximately $2,369,000.

A number of other institutional investors also recently modified their holdings of YUM. Steph & Co. raised its stake in Yum! Brands by 107.5% during the first quarter. Steph & Co. now owns 166 shares of the restaurant operator’s stock worth $26,000 after buying an additional 86 shares during the last quarter. Edmond DE Rothschild Holding S.A. bought a new stake in Yum! Brands during the second quarter valued at $27,000. Kelleher Financial Advisors bought a new stake in Yum! Brands during the second quarter valued at $29,000. MV Capital Management Inc. acquired a new stake in Yum! Brands during the 4th quarter worth about $28,000. Finally, Manning & Napier Advisors LLC bought a new position in shares of Yum! Brands in the 1st quarter worth about $28,000. 82.37% of the stock is owned by institutional investors.

Insiders Place Their Bets In other Yum! Brands news, VP David Eric Russell sold 7,961 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $153.15, for a total transaction of $1,219,227.15. Following the transaction, the vice president owned 11,960 shares in the company, valued at approximately $1,831,674. This represents a 39.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Scott Mezvinsky sold 268 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $153.15, for a total transaction of $41,044.20. Following the completion of the transaction, the chief executive officer directly owned 483 shares in the company, valued at $73,971.45. This trade represents a 35.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 18,549 shares of company stock worth $2,890,168 in the last quarter. Insiders own 0.14% of the company’s stock.

Analyst Ratings Changes A number of research analysts have recently issued reports on YUM shares. UBS Group reissued a “buy” rating on shares of Yum! Brands in a research note on Thursday, June 18th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $174.00 target price on shares of Yum! Brands in a research note on Friday, July 31st. JPMorgan Chase & Co. lowered their target price on Yum! Brands from $170.00 to $160.00 and set an “overweight” rating for the company in a report on Tuesday, August 4th. TD Cowen reissued a “buy” rating and issued a $180.00 price target on shares of Yum! Brands in a research note on Tuesday, June 16th. Finally, Evercore restated an “outperform” rating on shares of Yum! Brands in a report on Tuesday, June 16th. Twelve analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $174.65. Get Our Latest Report on Yum! Brands

Yum! Brands Stock Performance Shares of NYSE:YUM opened at $153.31 on Friday. Yum! Brands, Inc. has a 52-week low of $137.33 and a 52-week high of $170.14. The business’s 50 day simple moving average is $153.43 and its two-hundred day simple moving average is $155.98. The firm has a market cap of $41.84 billion, a P/E ratio of 19.28, a PEG ratio of 2.48 and a beta of 0.55.

Yum! Brands (NYSE:YUM – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, beating the consensus estimate of $1.58 by $0.04. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.The firm had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter in the previous year, the company posted $1.44 earnings per share. The company’s quarterly revenue was up 12.2% on a year-over-year basis. On average, equities analysts forecast that Yum! Brands, Inc. will post 6.42 earnings per share for the current fiscal year.

Yum! Brands declared that its Board of Directors has authorized a stock buyback plan on Tuesday, June 16th that allows the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization allows the restaurant operator to buy up to 9.4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Yum! Brands News Roundup Here are the key news stories impacting Yum! Brands this week:

Positive Sentiment: Yum! Brands outlined a renewed consumer-growth strategy centered on strengthening brand engagement, digital capabilities, loyalty programs and operational execution across KFC, Taco Bell and Pizza Hut. The emphasis on personalized customer experiences and technology could support sales and franchisee performance. Yum! Brands Reveals New Path for Consumer Growth Positive Sentiment: The company appointed former HanesBrands CEO Steve Bratspies to its board, effective August 26. His experience managing global consumer brands and improving operations may add expertise as Yum! pursues growth and evaluates its portfolio. Yum! Brands Appoints Steve Bratspies to Board Neutral Sentiment: Pizza Hut is using a football-themed branding promotion ahead of the NFL season. The marketing effort could increase near-term visibility, but it comes as Yum! advances the multibillion-dollar sale of the chain, making the strategic implications more important than the promotion itself. Pizza Hut Branding Change Negative Sentiment: Shares faced pressure after Yum! announced a new chief executive officer. Although a leadership change could bring fresh momentum, investors may be concerned about execution risk and the direction of the company during the transition. Yum! Brands Slides on Naming New CEO Negative Sentiment: An insider reportedly reduced a Yum! Brands equity stake by 28%, while executive share withholding related to restricted-stock-unit vesting was also disclosed. These transactions are not necessarily signals of deteriorating fundamentals, but they can weigh on sentiment. Yum! Brands Insider Sale Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! investors. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty to the stock. Pomerantz Investor Investigation Yum! Brands Profile (Free Report)

Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company’s principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company’s operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.

Further Reading Five stocks we like better than Yum! Brands 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit? Want to see what other hedge funds are holding YUM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Yum! Brands, Inc. (NYSE:YUM – Free Report).

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Allworth Financial LP purchased a new position in shares of Yum! Brands, Inc. (NYSE:YUM – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 12,786 shares of the restaurant operator’s stock, valued at approximately $2,044,000.

Several other institutional investors and hedge funds have also modified their holdings of YUM. Steph & Co. increased its holdings in shares of Yum! Brands by 107.5% during the 1st quarter. Steph & Co. now owns 166 shares of the restaurant operator’s stock valued at $26,000 after purchasing an additional 86 shares in the last quarter. Edmond DE Rothschild Holding S.A. purchased a new position in Yum! Brands in the second quarter valued at $27,000. Kelleher Financial Advisors purchased a new position in Yum! Brands in the second quarter valued at $29,000. MV Capital Management Inc. acquired a new position in shares of Yum! Brands in the fourth quarter worth about $28,000. Finally, Manning & Napier Advisors LLC purchased a new stake in shares of Yum! Brands during the 1st quarter worth about $28,000. Institutional investors and hedge funds own 82.37% of the company’s stock.

Insider Activity In related news, CEO Scott Mezvinsky sold 268 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $153.15, for a total value of $41,044.20. Following the completion of the transaction, the chief executive officer directly owned 483 shares in the company, valued at approximately $73,971.45. This represents a 35.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Eric Russell sold 7,961 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $153.15, for a total value of $1,219,227.15. Following the transaction, the vice president owned 11,960 shares of the company’s stock, valued at approximately $1,831,674. This represents a 39.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 18,549 shares of company stock valued at $2,890,168 in the last quarter. Insiders own 0.14% of the company’s stock.

Yum! Brands Stock Up 0.6% Yum! Brands stock opened at $153.31 on Friday. The company has a fifty day simple moving average of $153.43 and a 200-day simple moving average of $155.98. The firm has a market capitalization of $41.84 billion, a price-to-earnings ratio of 19.28, a PEG ratio of 2.47 and a beta of 0.55. Yum! Brands, Inc. has a 52-week low of $137.33 and a 52-week high of $170.14. Yum! Brands (NYSE:YUM – Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.58 by $0.04. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The firm had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same period last year, the firm posted $1.44 earnings per share. The company’s revenue for the quarter was up 12.2% on a year-over-year basis. On average, research analysts anticipate that Yum! Brands, Inc. will post 6.42 EPS for the current fiscal year.

Yum! Brands announced that its Board of Directors has authorized a share buyback plan on Tuesday, June 16th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the restaurant operator to purchase up to 9.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

More Yum! Brands News Here are the key news stories impacting Yum! Brands this week:

Positive Sentiment: Yum! Brands outlined a renewed consumer-growth strategy centered on strengthening brand engagement, digital capabilities, loyalty programs and operational execution across KFC, Taco Bell and Pizza Hut. The emphasis on personalized customer experiences and technology could support sales and franchisee performance. Yum! Brands Reveals New Path for Consumer Growth Positive Sentiment: The company appointed former HanesBrands CEO Steve Bratspies to its board, effective August 26. His experience managing global consumer brands and improving operations may add expertise as Yum! pursues growth and evaluates its portfolio. Yum! Brands Appoints Steve Bratspies to Board Neutral Sentiment: Pizza Hut is using a football-themed branding promotion ahead of the NFL season. The marketing effort could increase near-term visibility, but it comes as Yum! advances the multibillion-dollar sale of the chain, making the strategic implications more important than the promotion itself. Pizza Hut Branding Change Negative Sentiment: Shares faced pressure after Yum! announced a new chief executive officer. Although a leadership change could bring fresh momentum, investors may be concerned about execution risk and the direction of the company during the transition. Yum! Brands Slides on Naming New CEO Negative Sentiment: An insider reportedly reduced a Yum! Brands equity stake by 28%, while executive share withholding related to restricted-stock-unit vesting was also disclosed. These transactions are not necessarily signals of deteriorating fundamentals, but they can weigh on sentiment. Yum! Brands Insider Sale Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! investors. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty to the stock. Pomerantz Investor Investigation Wall Street Analyst Weigh In A number of equities research analysts have recently commented on the company. Wells Fargo & Company raised their target price on Yum! Brands from $160.00 to $165.00 and gave the company an “equal weight” rating in a research report on Thursday, April 30th. Evercore reaffirmed an “outperform” rating on shares of Yum! Brands in a report on Tuesday, June 16th. UBS Group reissued a “buy” rating on shares of Yum! Brands in a report on Thursday, June 18th. TD Cowen restated a “buy” rating and issued a $180.00 price objective on shares of Yum! Brands in a research report on Tuesday, June 16th. Finally, Royal Bank Of Canada upped their target price on Yum! Brands from $165.00 to $170.00 and gave the stock a “sector perform” rating in a research note on Friday, July 31st. Twelve investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $174.65.

View Our Latest Analysis on YUM

About Yum! Brands (Free Report)

Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company’s principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company’s operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.

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Sean Tresvant, Chief Consumer Officer and the Taco Bell division's CEO, disposed of 2,035 shares of Yum! Brands, Inc. (YUM +4.39%) on August 18, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$294,790Shares sold2,035Post-transaction shares (directly held)5,206Post-transaction shares (indirectly held)33Post-transaction value$758,921.54Transaction value based on SEC Form 4 weighted average sale price ($144.86); post-transaction value based on August 18, 2026 market close ($144.86).

Key questionsWhat were the specific circumstances of this share disposition?
The transaction was a non-discretionary event where 2,035 shares were withheld by the company to satisfy tax obligations resulting from the exercise of stock options on August 18, 2026.How does this impact the executive's total equity position?
Following the filing, Sean Tresvant retains 5,206 shares in direct ownership and 33 shares held indirectly through a 401(k) plan, representing a 28% reduction from the previous total holdings.What is the current market context for the company?
Shares of Yum! Brands were priced at $145.93 as of the August 19, 2026 market close, following a one-year total return of -3% as of the transaction date.Does the executive maintain further exposure to the company through derivative securities?
In this filing, the insider reported a remaining 0.23 restricted stock units (RSUs) after exercising 4,101 RSUs to add to his direct holdings.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$145.93Market Capitalization$40.2 billionRevenue (TTM)$8.7 billionNet Income (TTM)$2.2 billionCompany SnapshotYum! Brands operates a diversified portfolio of globally recognized quick-service restaurant brands including KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill, generating revenue through company-operated restaurants and franchise royalties across multiple food categories including chicken, pizza, Mexican-style cuisine, and chargrilled burgers.The company employs a capital-efficient franchise-based business model whereby it creates, manages, and franchises restaurant concepts globally, allowing for rapid expansion with limited capital expenditure while collecting ongoing royalties and fees from franchise partners.Yum! Brands serves a broad consumer base across the quick-service restaurant segment, targeting value-conscious consumers seeking convenient meal options across diverse culinary preferences in both developed and emerging markets globally.Yum! Brands is a leading global quick-service restaurant enterprise with a market cap of $40.2 billion, demonstrating significant scale in the restaurant franchising sector. The company's competitive advantage derives from its portfolio of iconic, globally recognized brands with established customer loyalty and operational expertise in franchise management across diverse cuisines and geographies.

Its asset-light franchise model provides operational leverage and consistent cash generation while enabling geographic and demographic diversification across its four primary restaurant concepts.

What this transaction means for investorsTaco Bell CEO Sean Tresvant's Aug. 18 sale of Yum! Brands stock was a non-discretionary transaction to fulfill tax withholding obligations related to the exercise of 4,101 RSUs. After the tax-related sale, he was left with 5,206 directly held shares.

While this disposition does not reflect the insider's view on the stock, Tresvant has made several discretionary sales in 2026. After exercising this latest round of RSUs, he effectively has no more restricted stock units as of this filing, and only 33 shares in a 401(k) plan along with his direct shares. This does not instill confidence in Tresvant's long-term view of the stock.

Yum! Brands has gone through ups and downs over the past year. Its Pizza Hut business has not performed well, and the company reached agreements to sell the division. Despite this, the restaurant giant achieved $2.2 billion in sales during the second quarter, a solid 12% increase over the prior year's $1.9 billion.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Yum! Brands. The Motley Fool has a disclosure policy.

NEW YORK, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Yum! Brands, Inc. (“Yum! Brands” or the “Company”) (NYSE: YUM). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Yum! Brands and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On August 3, 2026, the Michigan Department of Health and Human Services reported two deaths in connection with the state’s ongoing cyclosporiasis outbreak, which an FDA investigation has linked to iceberg lettuce served at Yum! Brands’ Taco Bell restaurants.

On this news, Yum! Brands’ stock price fell $4.48 per share, or 2.92%, to close at $148.80 per share on August 3, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

NEW YORK, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Yum! Brands, Inc. (“Yum!

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LOS ANGELES--(BUSINESS WIRE)--Schall, Brown & Schwartz LLP (“SBS”), a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Yum! Brands, Inc. (“Yum! Brands” or “the Company”) (NYSE: YUM) for violations of the securities laws.

INVESTIGATION DETAILS: The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Yum! Brands’ Taco Bell restaurants have been linked to an outbreak of cyclosporiasis by the Michigan Department of Health and Human Services. Baed on this news, shares of Yum! Brands fell by more than 2.9% on August 3, 2026.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall or David Schwartz of Schall, Brown & Schwartz LLP, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected]

WHY SBS? Schall, Brown & Schwartz LLP represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. Bringing together the extensive experience and diverse skillsets of founding partners Brian Schall, Andrew Brown, and David Schwartz, SBS is dedicated to aggressively advocating for every investor.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

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, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Yum! Brands, Inc. ("Yum! Brands" or the "Company") (NYSE: YUM). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Yum! Brands and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On August 3, 2026, the Michigan Department of Health and Human Services reported two deaths in connection with the state's ongoing cyclosporiasis outbreak, which an FDA investigation has linked to iceberg lettuce served at Yum! Brands' Taco Bell restaurants. 

On this news, Yum! Brands' stock price fell $4.48 per share, or 2.92%, to close at $148.80 per share on August 3, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected] 
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Key Takeaways YUM fell 10.4% in a month as estimate cuts and operating uncertainty pressured investor confidence.Taco Bell's sales weakened after a food safety issue, making a quick recovery crucial for YUM.KFC expansion and the $2.7B Pizza Hut sale may support growth, but execution risks remain. Shares of Yum! Brands, Inc. (YUM - Free Report) have declined 10.4% in the past month, creating a potential entry point for investors willing to look past near-term pressure. The pullback follows weakening earnings estimates and fresh operating uncertainty at key brands.

The second-quarter results still showed earnings growth, digital progress and restaurant expansion. The investment case now depends on whether Taco Bell recovers quickly, KFC converts unit growth into better productivity and the Pizza Hut separation proceeds as planned.

YUM’s Earnings Beat Offers a Reason to Look AgainAdjusted earnings of $1.62 per share increased 12.5% year over year and beat the Zacks Consensus Estimate of $1.59 by 1.9%. Revenues rose 12.2% to $2.17 billion but missed the consensus mark by 0.6%.

The mixed result explains why the quarter may not have fully restored confidence. Earnings benefited from solid operating performance, yet the revenue miss and a 1.8% decline in the current-year earnings estimate over the past four weeks point to softer near-term expectations.

Taco Bell’s Recovery Could Decide YUM’s Next MoveTaco Bell delivered 7% same-store sales growth, 9% system sales growth and 19% operating profit growth in the second quarter. U.S. company-owned restaurant margins reached 26.2%, while digital mix increased five percentage points to 47%.

The picture changed after an industry-wide food safety issue. U.S. same-store sales were down 2% quarter to date through July 27, though management said trends improved after the peak impact. McDonald’s Corporation (MCD - Free Report) also competes heavily on value, digital access and convenience, raising the importance of a timely Taco Bell recovery.

KFC Expansion Gives YUM a Long-Term Growth LeverKFC opened 660 gross new restaurants across 55 markets and increased its restaurant count 7%. System sales rose 6% excluding foreign currency effects, but same-store sales advanced only 2%.

That gap makes restaurant productivity the key issue. KFC is modernizing its menu, visual identity and digital capabilities, with core elements targeted for its top 20 markets by the end of 2027. Better average unit volumes would make rapid expansion more valuable to franchisees and shareholders.

Pizza Hut’s Exit Could Remove a Major Drag on YUMPizza Hut remained weak before the planned divestiture. Second-quarter system sales declined 2% excluding foreign currency effects, same-store sales fell 1% and operating profit dropped 14% on the same basis.

YUM agreed to sell Pizza Hut for $2.7 billion and expects about $2.3 billion in net proceeds. Domino’s Pizza, Inc. (DPZ - Free Report) , a focused global pizza operator, provides a relevant contrast as Pizza Hut moves to separate ownership. Closing and transition work remain risks, including technology and finance services that are expected to phase out during 2027.

YUM’s Valuation Makes the Pullback Worth WatchingYUM trades at 21.1X forward 12-month earnings, below its five-year median of 23.3X and the restaurant sub-industry’s 22.9X. The discount suggests that part of the operating risk is already reflected in the share price.

The valuation is not outright cheap relative to the broader market because the S&P 500 trades at 20.3X. Investors therefore need evidence that Taco Bell is normalizing, KFC productivity is improving and portfolio simplification can support earnings growth.

YUM’s Mixed Signals Support a Selective ApproachThe sell-off makes YUM more interesting, but the current setup supports patience rather than an aggressive entry. Brand strength, unit development and digital scale provide long-term support, while estimate cuts, Taco Bell’s recovery and separation execution limit near-term visibility.

The stock currently carries a Zacks Rank #3 (Hold). Its Growth Score of C is accompanied by a Value Score of D, Momentum Score of F and VGM Score of D. The Hold rank suggests waiting for clearer earnings-estimate direction, while the weaker Value, Momentum and combined VGM readings indicate that the recent decline alone does not create a broadly favorable style profile.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For the quarter ended June 2026, Yum Brands (YUM - Free Report) reported revenue of $2.17 billion, up 12.2% over the same period last year. EPS came in at $1.62, compared to $1.44 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.18 billion, representing a surprise of -0.55%. The company delivered an EPS surprise of +1.89%, with the consensus EPS estimate being $1.59.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Yum performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

System same-store sales - Habit Burger Grill Division: 3% versus the five-analyst average estimate of 1.4%.System same-store sales - Taco Bell Division - YoY change: 7% versus the five-analyst average estimate of 5.7%.Number of restaurants - Company-owned - Habit Burger Grill Division: 304 compared to the 312 average estimate based on five analysts.Number of restaurants - Franchise & License - Habit Burger Grill Division: 84 versus 83 estimated by five analysts on average.Revenues- Franchise and property revenues: $895 million compared to the $894.76 million average estimate based on five analysts. The reported number represents a change of +7.2% year over year.Revenues- Taco Bell Division- Franchise and property revenues: $271 million versus the five-analyst average estimate of $264.68 million. The reported number represents a year-over-year change of +9.3%.Revenues- Pizza Hut Division: $254 million compared to the $261.49 million average estimate based on five analysts. The reported number represents a change of +6.3% year over year.Revenues- Taco Bell Division: $853 million versus the five-analyst average estimate of $836.13 million. The reported number represents a year-over-year change of +20%.Revenues- Franchise contributions for advertising and other services: $438 million versus the five-analyst average estimate of $456.63 million. The reported number represents a year-over-year change of +2.3%.Revenues- KFC Division- Franchise contributions for advertising and other services: $172 million compared to the $182.78 million average estimate based on five analysts. The reported number represents a change of +3% year over year.Revenues- Habit Burger Grill Division: $139 million versus the five-analyst average estimate of $135.66 million. The reported number represents a year-over-year change of +3.7%.Revenues- Pizza Hut Division- Franchise contributions for advertising and other services: $80 million compared to the $86.18 million average estimate based on five analysts. The reported number represents a change of -5.9% year over year.View all Key Company Metrics for Yum here>>>

Shares of Yum have returned -4.7% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Yum! Brands, Inc. (YUM) Q2 2026 Earnings Call Transcript

ToplineYum! Brands, the publicly traded parent company of Taco Bell, says it's already recovering from a sales slump driven by a cyclospora outbreak that sent foot traffic to the chain plummeting after thousands of people were sickened by eating tainted lettuce served at its restaurants.

A Taco Bell restaurant on July 14, 2026 in La Cañada Flintridge, California.

Getty Images

Key FactsYum! Brands CEO Chris Turner on Thursday said the outbreak, linked to lettuce supplied to Taco Bell by produce giant Taylor Farms, had a "meaningful near-term sales impact" on the company but that sales trends have been "steadily improving" over the last 10 days.

He also said brand sentiment on social media has returned to pre-Cyclospora levels and reported “consumers have become increasingly aware that this is an industry-wide issue, not an issue specific to Taco Bell.”

The comments came as Yum! reported second-quarter earnings for the period ending June 30—before the outbreak hit.

Yum! Brands earnings per share beat industry expectations and the company reported net revenue climbed 12% to $2.17 billion.

Shares of Yum! were up about 4% in premarket trading.

BIG NUMBER31%. That’s how much foot traffic to Taco Bell plummeted on July 17, the first Friday after the chain was linked to the outbreak, per Placer.ai. The broader fast-food category posted only a 1.9% traffic decline that same day, meaning Taco Bell's drop was approximately 16 times worse than its peers.

Key backgroundThousands of people had been sickened by cyclosporiasis, caused by the cyclospora bacteria, before the Food and Drug Administration linked the outbreak to iceberg lettuce served at Taco Bell. More than 1,600 of the estimated 7,000 sick people at the time—mid-July—reported eating at Taco Bell restaurants in five states. The restaurants had already stopped serving the tainted lettuce by the time the link was identified, and Taylor Farms later recalled products in 27 states. While the Taco Bell common thread is undeniable, the FDA says, it doesn’t explain all of the cyclosporiasis cases—now roughly 11,500—nationwide. To date, none of the produce the FDA has tested has produced a positive sample result for cyclospora and investigators are still working to trace what other produce may be making people sick.

SURPRISING FACTYum! Brands warned investors that cyclospora was a material business risk long before the active outbreak. The company listed the parasite alongside E. coli, listeria, salmonella and trichinosis as a prominent risk factor in its most recent SEC annual filing and named it as the No. 1 threat—ahead of every other business problem it predicted.

further readingForbesMichigan Passes 10,000 Cyclosporiasis Cases—And Experts Still Don’t Have A Definitive CauseBy Mary Whitfill RoeloffsForbesTaco Bell Lettuce Linked To Multistate Cyclosporiasis Outbreak—But Not Every Sick Person Ate ThereBy Mary Whitfill Roeloffs

LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the second quarter ended June 30, 2026. Second-quarter GAAP EPS was $3.08 and second-quarter EPS excluding Special Items was $1.62. CHRIS TURNER COMMENTS Chris Turner, CEO, said “We delivered another strong quarter with robust same-store sales and restaurant-level margin performance. We also reached separate definitive agreements with two exceptional buyers for the Pizza Hut business, bringing our strateg.

Yum Brands said its second-quarter profit has more than doubled, driven by higher sales, as the fast-food chain deals with headwinds from a high-profile food safety crisis that emerged in recent weeks.

Yum Brands is expected to report its second-quarter earnings before the bell on Thursday, but executives will likely face more questions about how the cyclosporiasis outbreak tied to Taco Bell is hitting its business during the current reporting period.

Since the Food and Drug Administration first linked the parasitic outbreak to lettuce served by Taco Bell, daily traffic to the chain's locations has plunged by double digits, according to Placer.ai data. Shares of Yum have fallen 5% over the same period, dragging the company's market value down to about $42 billion.

The outbreak has sickened at least 1,947 people, with 98 hospitalizations and no deaths reported as of Friday, according to the Centers for Disease Control and Prevention. Federal health agencies have named iceberg lettuce supplied by Taylor Farms as the likely culprit.

For Yum, Taco Bell's plummeting traffic is a bigger deal than just a brand struggling.

The restaurant giant counts Taco Bell as one of its "twin growth engines," counting on it to power its earnings and revenue along with KFC's international business. The Mexican-inspired chain has long been the gem of Yum's portfolio, with a passionate fan base and strong same-store sales growth every quarter, even as diners have become more value conscious.

Besides Taco Bell and KFC, Yum owns Habit Burger & Grill. While KFC's international business is booming, its domestic sales have slipped so much that the company no longer breaks out the fried chicken chain's U.S. sales. Habit Burger & Grill, a more recent acquisition, is much smaller with fewer than 400 locations, and is rarely spoken about on the company's earnings calls.

Yum also recently divested Pizza Hut, a key piece of its portfolio that had also been struggling for more than a decade.

The divestiture means even more attention is on Taco Bell, at the exact wrong moment.

Tip of the iceberg?For the second quarter, Wall Street is projecting that Yum will report earnings of $1.58 per share on revenue of $2.2 billion, based on a survey of analysts by LSEG. Taco Bell is expected to report same-store sales growth of 7% for the quarter, which ended more than a month before the FDA linked the chain to the outbreak.

But Wall Street now expects that Taco Bell and its parent company will see a tougher stretch in the back half of the year.

"We think the recent outbreak likely has minimal impact on Taco Bell's Q2 results, though debate around impact on Q3 and beyond is the key driver of the stock recently," RBC Capital Markets analyst Logan Reich wrote in a note to clients on July 21. "We lower our Q3 and Q4 [Taco Bell] estimates as a result, however given the recent selloff in shares, this may create an opportunity to the degree that consumer confidence in TB's food safety is not materially impaired beyond this outbreak."

Between June 30 and Tuesday, seven industry analysts revised their expectations for Yum's full-year earnings per share downward, according to a Factset survey of consensus estimates.

The chain is already trying to win customers back. Taco Bell had pulled affected iceberg lettuce from its restaurants by July 17. Taco Bell CEO Sean Tresvant wrote an open letter to diners five days later trying to assuage their concerns.

"We aren't entitled to your loyalty. We earn it one meal at a time," he said, adding a pledge that Taco Bell will put safety first and act with transparency.

Social media responses show that some consumers have stayed loyal, despite the crisis. Commenters overwhelmingly responded positively to an Instagram post from Taco Bell addressing the situation.

"I still luv u Taco Bell," former reality TV personality Lo Bosworth wrote in a comment on the post.

Moreover, Taco Bell is leaning into its reputation for value to win back customers. The same day that Tresvant shared his letter, the chain sold Enchiritos and nacho fries for $1; on Tuesday, it sold its cult-favorite Mexican Pizza for $1.

Still, the outbreak rages on. Daily cases in Michigan, which appears to be the epicenter of the initial outbreak, keep rising. While Health and Human Services Secretary Robert F. Kennedy Jr. told reporters that the outbreak is "under control," the CDC has not declared it over.

At their worst, such outbreaks can weigh on a restaurant chain's sales for years.

Chipotle Mexican Grill was once the poster child, after being implicated in at least five separate foodborne illness outbreaks between 2015 and 2018. For a year, from the fourth quarter of 2015 to the fourth quarter of 2016, the burrito chain reported double-digit same-store sales declines. But a new chief executive, sick days and more training for employees and an enhanced food safety program helped Chipotle turn the corner and put the crisis in the rearview mirror.

Industry analysts largely believe that Taco Bell will be spared that reaction, provided that it does not experience any other safety hiccups in the near term. Many instead see McDonald's recent brush with a foodborne illness outbreak as the more likely precedent for Taco Bell.

In late 2024, health authorities linked a deadly E. coli outbreak to McDonald's Quarter Pounder burgers. The burger chain saw traffic to its U.S. restaurants fall steeply in response, particularly in the affected states. Sales began recovering within several weeks after the CDC declared the outbreak over and it disappeared from headlines. Weaker traffic continued into the first quarter of 2025, although that trend coincided with severe winter weather and a broader pullback in consumer spending.

McDonald's domestic sales fully rebounded by the second quarter, thanks to the launch of its Minecraft Movie Meal, according to research note from M Science.

Like Taco Bell and Chipotle, McDonald's also took steps to address the outbreak and restore diners' trust. For example, it severed its relationship with the supplier of the slivered onions likely responsible for the E. coli outbreak — Taylor Farms.

Delta Global Management LP bought a new position in Yum! Brands, Inc. (NYSE:YUM – Free Report) in the first quarter, according to its most recent filing with the SEC. The firm bought 4,011 shares of the restaurant operator’s stock, valued at approximately $624,000.

Other hedge funds have also bought and sold shares of the company. OMERS ADMINISTRATION Corp grew its holdings in shares of Yum! Brands by 135.7% during the first quarter. OMERS ADMINISTRATION Corp now owns 24,020 shares of the restaurant operator’s stock valued at $3,735,000 after buying an additional 13,830 shares during the last quarter. Lombard Odier Asset Management Switzerland SA raised its stake in Yum! Brands by 21.9% in the 1st quarter. Lombard Odier Asset Management Switzerland SA now owns 35,110 shares of the restaurant operator’s stock worth $5,459,000 after acquiring an additional 6,300 shares during the last quarter. Waverly Advisors LLC raised its stake in Yum! Brands by 30.3% in the 1st quarter. Waverly Advisors LLC now owns 14,408 shares of the restaurant operator’s stock worth $2,240,000 after acquiring an additional 3,347 shares during the last quarter. Entropy Technologies LP lifted its position in Yum! Brands by 25.4% during the 1st quarter. Entropy Technologies LP now owns 37,926 shares of the restaurant operator’s stock worth $5,897,000 after acquiring an additional 7,676 shares during the period. Finally, Bridgewater Advisors Inc. grew its stake in Yum! Brands by 3.5% during the 1st quarter. Bridgewater Advisors Inc. now owns 2,108 shares of the restaurant operator’s stock valued at $311,000 after purchasing an additional 72 shares during the last quarter. Institutional investors and hedge funds own 82.37% of the company’s stock.

Analyst Upgrades and Downgrades A number of brokerages have recently weighed in on YUM. Royal Bank Of Canada reissued a “sector perform” rating and issued a $165.00 price objective on shares of Yum! Brands in a report on Monday, April 20th. BMO Capital Markets reaffirmed a “market perform” rating and set a $168.00 target price on shares of Yum! Brands in a report on Monday, May 4th. Weiss Ratings downgraded shares of Yum! Brands from a “buy (b+)” rating to a “buy (b)” rating in a report on Wednesday, May 6th. Evercore reissued an “outperform” rating on shares of Yum! Brands in a research report on Tuesday, June 16th. Finally, Deutsche Bank Aktiengesellschaft set a $177.00 price objective on shares of Yum! Brands in a research note on Thursday, April 30th. Eleven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $174.81.

Check Out Our Latest Stock Report on YUM

Insider Buying and Selling In other Yum! Brands news, CEO Aaron Powell sold 6,001 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $160.42, for a total value of $962,680.42. Following the sale, the chief executive officer owned 12,003 shares in the company, valued at approximately $1,925,521.26. This represents a 33.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Christopher Lee Turner sold 270 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $148.14, for a total transaction of $39,997.80. Following the sale, the chief executive officer directly owned 64,282 shares in the company, valued at $9,522,735.48. The trade was a 0.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,423 shares of company stock valued at $1,953,721 in the last three months. 0.14% of the stock is currently owned by company insiders.

Yum! Brands Stock Performance NYSE YUM opened at $148.82 on Monday. The stock has a 50-day simple moving average of $154.06 and a two-hundred day simple moving average of $156.76. The firm has a market capitalization of $41.02 billion, a P/E ratio of 24.00, a PEG ratio of 1.88 and a beta of 0.56. Yum! Brands, Inc. has a fifty-two week low of $137.33 and a fifty-two week high of $170.14.

Yum! Brands (NYSE:YUM – Get Free Report) last issued its earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 EPS for the quarter, topping analysts’ consensus estimates of $1.39 by $0.11. Yum! Brands had a negative return on equity of 23.51% and a net margin of 20.48%.The firm had revenue of $2.06 billion for the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter in the prior year, the business earned $1.30 earnings per share. The company’s revenue was up 15.2% compared to the same quarter last year. As a group, analysts forecast that Yum! Brands, Inc. will post 6.74 earnings per share for the current year.

Yum! Brands Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Wednesday, May 27th were issued a $0.75 dividend. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $3.00 dividend on an annualized basis and a yield of 2.0%. Yum! Brands’s payout ratio is presently 48.39%.

Yum! Brands declared that its board has authorized a share repurchase plan on Tuesday, June 16th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the restaurant operator to buy up to 9.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

About Yum! Brands (Free Report)

Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company’s principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company’s operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.

Recommended Stories Five stocks we like better than Yum! Brands RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding YUM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Yum! Brands, Inc. (NYSE:YUM – Free Report).

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David Deno Appointed Next CEO, Effective August 10, 2026

Julie Masino to Step Down as CEO and Director; Will Remain in Advisory Capacity through October 9, 2026

, /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today announced that, following a comprehensive succession planning and search process, David Deno has been appointed to serve as the Company's next Chief Executive Officer and will join the Board of Directors (the "Board"), both effective August 10, 2026. He succeeds Julie Masino, who will step down as Chief Executive Officer and a member of the Board effective as of the same date. Ms. Masino will remain with the Company in an advisory capacity until October 9, 2026 to support a smooth transition.

David Deno has been appointed to serve as Cracker Barrel's next CEO and will join the Board of Directors, both effective August 10, 2026. Independent Chairman of the Cracker Barrel Board Carl Berquist said, "Following a robust and thoughtful search process, we are pleased to welcome David as Cracker Barrel's next CEO. He brings decades of experience across the restaurant and retail industries, with a strong track record of leading businesses through growth and a demonstrated commitment to operational excellence, guest experience, and team member engagement. We are confident David is the right leader to continue building on the Cracker Barrel legacy, drive further positive momentum operationally and financially, and create sustainable value for our shareholders." 

Mr. Deno commented, "Cracker Barrel is a truly iconic American brand, defined by its unique combination of warm country hospitality, timeless appeal, and deep connection with guests across generations. I am honored to lead the Cracker Barrel team and look forward to unlocking the full potential of this remarkable brand. Together, we will stay focused on delivering delicious food and exceptional experiences for our guests, while driving profitable growth."

Mr. Berquist continued, "On behalf of the Board and the entire company, I want to thank Julie for her leadership and commitment to Cracker Barrel. We also appreciate her partnership to ensure a smooth leadership transition as we remain focused on the work underway to continue to serve our guests, support our employees, and execute our strategic priorities. We wish Julie all the best in her future endeavors."

About David Deno 
Mr. Deno is an accomplished restaurant and retail industry executive with more than four decades of experience and a strong track record of driving strategic execution, revitalized financial performance and profitable growth across leading brands. Most recently, he served as Chief Executive Officer of Bloomin' Brands (Nasdaq: BLMN) from 2019 to 2024, where he strengthened its financial foundation and expanded its international presence. Prior to being named CEO, he served as Bloomin' Brands Executive Vice President and Chief Financial Officer from 2012 to 2019, leading the company through its initial public offering. He joined Bloomin' Brands from Best Buy where he served as President of Asia and Chief Financial Officer for the International Division. Mr. Deno also spent 15 years in senior-level operations and financial positions at Yum! Brands (NYSE: YUM) and Pizza Hut (prior to its ownership by Yum! Brands), including serving as Chief Financial Officer and Chief Operating Officer of Yum! Brands and as CFO of Pizza Hut. He began his career in the restaurant industry at Burger King Corporation. Mr. Deno currently serves on the Board of Directors of Krispy Kreme, Inc. and Panera Brands.

About Cracker Barrel Old Country Store®
Cracker Barrel Old Country Store, Inc. – rooted in a rich legacy of warmth, generosity, and tradition – is on a mission to bring the goodness of country hospitality to life. Since 1969, when the first store opened in Lebanon, Tenn., Cracker Barrel has been serving up abundant portions of craveable homestyle food and offering one-of-a-kind retail finds. With approximately 660 company-owned Cracker Barrel Old Country Store® locations in 43 states, the brand continues to honor its heritage while welcoming everyone with more than a meal. For more information, visit CrackerBarrel.com.

CBRL-F

Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements concerning Cracker Barrel's expectations, anticipations, intentions, beliefs or strategies regarding its chief executive officer transition plan. These and similar statements regarding events or results that the Company expects will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual results and performance of the Company to differ materially from those expressed or implied by such forward-looking statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. Factors that could materially affect actual results include, but are not limited to risks and uncertainties associated with the Company's management and leadership changes described in this press release and the Company's ability to retain key personnel following the completion of these changes; inflationary conditions with respect to the price of commodities, ingredients, transportation, distribution and labor; disruptions to the Company's restaurant or retail supply chain; effects of changes in international, national, regional and local economic and market conditions (such as the imposition of trade barriers or other changes in trade policy) on our business; the Company's ability to manage retail inventory and merchandise mix; the Company's ability to sustain or the effects of plans intended to improve operational or marketing execution and performance or liquidity; the impact of adverse or extreme weather events on sales and customer travel; the effects of increased competition at the Company's locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of the Company's food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease; the effects of the Company's indebtedness and associated restrictions on the Company's financial and operating flexibility and ability to execute or pursue its operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting the Company's financing costs and ability to refinance its indebtedness, in whole or in part; the Company's reliance on a single distribution facility and certain significant vendors, particularly for foreign-sourced retail products; information technology disruptions and data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors or actions of third parties; the Company's compliance with privacy and data protection laws; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the actual results of pending, future or threatened litigation or governmental investigations; or the Company's ability to manage the impact of negative social media attention and the costs and effects of negative publicity; the impact of activist shareholders; the Company's ability to achieve aspirations, goals and projections related to its sustainability initiatives; the Company's ability to enter successfully into new geographic markets that may be less familiar to it; changes in land, building materials and construction costs; the availability and cost of suitable sites for restaurant development and the Company's ability to identify those sites; the ability of and cost to the Company to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that the Company may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions; discretionary income or personal expenditure activity of the Company's customers; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in the Company's filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which made. The Company expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

Investor Contact: Adam Hanan

(615) 443-9887

Media Contact: Heidi Pearce

(615) 235-4135

SOURCE Cracker Barrel Old Country Store, Inc.

Yum Brands (YUM - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis parent company of KFC, Taco Bell and Pizza Hut is expected to post quarterly earnings of $1.59 per share in its upcoming report, which represents a year-over-year change of +10.4%.

Revenues are expected to be $2.18 billion, up 12.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.62% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Yum?For Yum, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.63%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Yum will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Yum would post earnings of $1.39 per share when it actually produced earnings of $1.50, delivering a surprise of +7.91%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Yum doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsChipotle Mexican Grill (CMG - Free Report) , another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $0.32 for the quarter ended June 2026. This estimate points to a year-over-year change of -3%. Revenues for the quarter are expected to be $3.32 billion, up 8.4% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Chipotle has been revised 0.3% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.84%, reflecting a higher Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Chipotle will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Item 1 of 2 A Yum! Brands Inc. Taco Bell is shown in Encinitas, California,U.S., October 3, 2016. REUTERS/Mike Blake/File Photo

[1/2]A Yum! Brands Inc. Taco Bell is shown in Encinitas, California,U.S., October 3, 2016. REUTERS/Mike Blake/File Photo Purchase Licensing Rights, opens new tab

CompaniesJuly 22 (Reuters) - The United States' largest foodborne illness outbreak in recent years, linked to shredded lettuce served at some Taco Bell eateries, may dent the fast-food chain's sales, but is unlikely to cause any long-lasting damage to the brand, analysts said.

U.S. health officials ​are investigating the source of the cyclosporiasis outbreak, which has sickened thousands of people in Michigan and four other states. Some ‌reports had initially linked the parasite, Cyclospora, to a Taylor Farms plant in Mexico.

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However, Mexico said on Tuesday that there was no evidence yet to suggest that lettuce sourced from it caused the outbreak in the U.S.

Foot traffic at Taco Bell — owned by Yum Brands (YUM.N), opens new tab — was down 18.9% as of Friday, July 17, compared with the traffic on all Fridays from January ​1 through July 6, according to Placer.ai, a company that gathers foot traffic data.

"Wary consumers may temporarily take their appetites elsewhere to sidestep ​any perceived health risk," said Morningstar analyst Ari Felhandler.

Shares of Yum Brands fell nearly 10% last week after Taco Bell's ⁠link to the outbreak emerged. The company is scheduled to report quarterly results as soon as next week.

Analysts and consultants said the outbreak would need to ​persist for months to materially damage the brand. They pointed to McDonald's (MCD.N), opens new tab, which returned to growth within a few quarters of the 2024 E. coli outbreak linked to ​one of its most popular menu items.

Taco Bell has said it removed potentially affected lettuce from restaurants in select states as a precaution and stopped using iceberg lettuce supplied by Taylor Farms nationwide while the investigation continues.

"They are already making the right moves," said Izzy Kharasch, president of Hospitality Works. "This type of action, in addition to lots of communication to the public, ​will get them back on track sooner rather than later."

ANALYSTS PREDICT SHORT-TERM IMPACTThe Tex-Mex chain has been a key driver of Yum's growth, outperforming many ​rivals despite broader weakness in the restaurant industry. A long-term dip in its sales would amount to a big hit in overall revenue.

Chipotle Mexican Grill (CMG.N), opens new tab, for instance, took years to ‌rebuild customer ⁠confidence and restore sales after a series of foodborne illness outbreaks in 2015.

David Mayer, senior partner at global brand and design consultancy Lippincott, brushed such concerns aside. "People have very short-term memories," he said. "The most important thing for Taco Bell is that there is no additional food poisoning incident within the next 12 months."

A few Taco Bell customers Reuters spoke with echoed the sentiment.

Firefighter Shai Bialer said he was confident restaurants would quickly discard the affected lettuce because they feared lawsuits. "This ​is the only fast food I like," ​Bialer said, as he ate a ⁠bean burrito without lettuce at a Taco Bell in West Orange, New Jersey.

Spice distributor Benny Tejeda, who has a standing biweekly Taco Bell date with his father when the pair makes a delivery at a nearby market, said the tradition ​meant too much to him to skip. Tejeda is skeptical of the seriousness of the outbreak, saying he ​struggles to trust government ⁠agencies like the FDA to disseminate accurate information.

TRANSPARENCY REASSURANCESOther fast food chains are also protectively communicating with customers.

Salad chains Sweetgreen (SG.N), opens new tab and Chopt posted notices emphasizing that they do not use iceberg lettuce, while Chipotle highlighted to app users that it does not serve shredded iceberg lettuce. Just Salad separately emailed customers saying it does not use ⁠iceberg, pre-cut or ​shredded lettuce.

At a New Jersey Chipotle outlet on Tuesday, Caleb Rinn, 23, said he had ​forgotten all about the outbreak when he ordered a burrito bowl with lettuce.

Rinn said he is only mildly concerned. "No one has died from this," he said. Then, pausing, he said: "Right?"

Reporting by Juveria Tabassum and Neil J Kanatt in Bengaluru; Additional reporting by Anuja Bharat Mistry; Editing by Sayantani Ghosh and Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nicholas P. Brown covers retail and consumer issues for Reuters. He was formerly the news agency’s San Juan bureau chief, leading coverage of Puerto Rico’s economic and humanitarian crises, as well as its award-winning on-the-ground coverage of Hurricane Maria. Most recently, Nick was part of the team that reported Slavery’s Descendants, a seven-part series on the economic legacy of American slavery. The series won an Online News Association award; a National Association of Black Journalists award; a pair of National Headliner awards; and was a finalist in three Deadline Club awards. Since joining Reuters in 2011, Nick has written about everything from bankruptcy law to the rise of white nationalism, deploying to the occasional natural disaster (including Hurricanes Harvey in Texas and Dorian in the Bahamas). He also covered Super Bowl LIV in Miami, and enjoyed it immensely. Contact: