Yum! Brands: Despite Near-term Pressures, Stronger Growth Profile Ahead

研报英文原文证据摘录

Yum! Brands: Despite Near-term Pressures, Stronger Growth Profile Ahead

few months to up to 1-2 quarters. While we acknowledge the food safety situation

remains particularly fluid, we model 3Q TB sss of down 4% and 4Q sss of flat. We expect

Taco Bell will resume solid sales growth momentum into '27 as lingering food safety

impacts abate and given contribution from key sales drivers across: new menu items,

compelling value, relevant marketing, and digital platforms. Focus remains on the

expansion of the beverage and chicken platforms which could be significant multiyear

sales drivers.

KFC global sales momentum should continue, w/ opportunities to strengthen

We model 2% 2Q sss at KFC global (in line w/ Cons.), expecting still solid KFC

international trends despite macro pressures, and strength in the UK and key Asian

markets. While KFC US sss trends won't be provided, we expect progress on plans to

strengthen the business, driven by an enhanced value platform ($7/$9/$11 Value Feast

menu, $20 CHICK 'N' NUG meal, boneless bucket for one, $10 bucket of the day, 5 for

$5 Tenders), marketing, and menu innovation (jalapeño ranch and honey chili crisp

sauces). Focus is on the newly announced global revamp, with new menu offerings

(Dipped, Dunked, KWENCH beverages), restaurant designs, and branding, and a

strategic prioritization to expand loyalty. We model 2% '26 KFC sss.

Expect solid global store development across both Taco Bell and KFC

We expect 4.4% net unit growth for 2Q (Cons 4.6%), with the development trajectory

likely on track to meet '26 targets. TB appears on track to open 180-200 US stores per

year to reach the 10K store TAM (currently ~8K), with international development at 110-

115 new units per year. KFC's store development pipeline remains strong, with