YUM: 2Q26 - Cyclospora outbreak pauses Taco Bell‘s sprint

Research evidence excerpt

YUM: 2Q26 - Cyclospora outbreak pauses Taco Bell‘s sprint

Danilo Gargiulo +1 917 344 8475 danilo.gargiulo@bernsteinsg.com 31 July 2026

DETAILS

KEY TAKEAWAYS FROM EARNINGS CALL AND MANAGEMENT DISCUSSIONS

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KFC (58% of divisional operating profits ex-Pizza Hut): SWS growth of 6% driven by 2% SSSG and 7% NUG.

• Global performance remained mixed but showed encouraging momentum in several key markets, with UK SSSG of +8%

supported by the Picklemania LTO, while Asia SSSG grew +6%, helped by an 8-point QoQ acceleration in Japan and a

sixth consecutive quarter of double-digit growth in Korea.

• System sales grew +6% YoY, supported by continued category tailwinds as chicken remains the fastest-growing

protein globally.

• Brazil delivered 20%+ SSSG for the third consecutive quarter, highlighting the opportunity in underpenetrated,

high-growth markets.

• Management highlighted continued execution of its Raise the B.A.R. priorities during the quarter, including boneless

chicken innovation, expanded sauce offerings, refreshed brand identity initiatives, broader loyalty deployment and digital

capability enhancements across key markets.

• Kwench beverage platform: Following positive early performance in the UK and Australia, management intends to

expand the platform as it targets younger consumers seeking customized and premium beverage offerings. Early results

suggest favorable sales incrementality relative to investment requirements.

• 660 gross openings across 55 markets during Q2, with management expecting the strongest development year in

KFC history.

• The Middle East surpassed 1,500 KFC restaurants during the quarter.

• Management highlighted a 20,000 unit white space opportunity across India, Southeast Asia, West Africa and

Brazil.