Yum! Brands served up better-than-expected earnings Wednesday, fueled by Taco Bell’s sizzling 8% same-store sales growth — nearly double Wall Street’s 5.6% forecast.
“Taco Bell delivered an outstanding 8% same-store sales growth, meaningfully ahead of the quick-service restaurant industry,” Yum! CEO Chris Turner said in a statement. The chain credits AI for the growth. It’s expanding AI-driven A/B testing for drive-thru lanes, allowing it to change layouts, visuals and content shown to customers to learn what messages resonate.
But Yum!’s other brands didn’t fare as well. KFC U.S. system sales fell 2% during the quarter, and Pizza Hut’s U.S. same-store sales shrank 4%. Yum! announced in November that it is exploring strategic options for Pizza Hut, which has long been the laggard of its portfolio. Private equity firms, including Apollo Global Management and Sycamore Partners, are among potential buyers, Reuters reported. Yum!’s earnings release even included a bullet point showing results excluding Pizza Hut — a clear signal of where things stand.
Yum! Brands served up better-than-expected earnings Wednesday, fueled by Taco Bell’s sizzling 8% same-store sales growth — nearly double Wall Street’s 5.6% forecast.
“Taco Bell delivered an outstanding 8% same-store sales growth, meaningfully ahead of the quick-service restaurant industry,” Yum! CEO Chris Turner said in a statement. The chain credits AI for the growth. It’s expanding AI-driven A/B testing for drive-thru lanes, allowing it to change layouts, visuals and content shown to customers to learn what messages resonate.
But Yum!’s other brands didn’t fare as well. KFC U.S. system sales fell 2% during the quarter, and Pizza Hut’s U.S. same-store sales shrank 4%. Yum! announced in November that it is exploring strategic options for Pizza Hut, which has long been the laggard of its portfolio. Private equity firms, including Apollo Global Management and Sycamore Partners, are among potential buyers, Reuters reported. Yum!’s earnings release even included a bullet point showing results excluding Pizza Hut — a clear signal of where things stand.
