From Barchart: 2025-05-05 19:37:00

Yum! Brands (NYSE:YUM) Q1 CY2025 revenue fell short of expectations but rose 11.8% YoY to $1.79 billion. Non-GAAP profit was $1.30 per share, beating estimates by 1.4%. Taco Bell U.S. and KFC International drove sales growth, while Pizza Hut and Habit Burger faced challenges. YUM plans to invest in AI, technology, and international expansion for future growth. Management highlighted successful marketing campaigns and increased digital engagement as key drivers of sales momentum. A partnership with NVIDIA aims to enhance AI capabilities in drive-thru automation. YUM is preparing for a leadership transition next year.

Top Analyst Questions: Analysts questioned KFC International growth sustainability amid geopolitical concerns, back-half weighted profit growth confidence, store development targets, Byte by Yum! external revenue potential, and the uniqueness of the NVIDIA partnership. YUM emphasized ongoing investments in digital platforms, AI, and franchise strength to drive revenue growth. The pace of Byte by Yum! adoption, new store openings, and margin performance will be key areas to monitor in upcoming quarters. YUM trades at a forward P/E ratio of 23.8×. Explore our free research report for more insights.



Read more at Barchart: Digital Investments and Global Expansion Drive Mixed Results