A month has gone by since the last earnings report for Yum Brands (YUM Quick QuoteYUM - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Yum due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

YUM! Brands Q3 Earnings & Revenues Surpass Estimates, Rise Y/Y

YUM! Brands, reported third-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. 

YUM announced the launch of a strategic review for its Pizza Hut brand aimed at maximizing long-term value for the company, its franchisees and partners. Also, it stated plans to complete the acquisition of 128 Taco Bell restaurants across the Southeast United States in the fourth quarter of 2025. The move is expected to strengthen its equity-owned restaurant base with high-margin assets, enhance EBITDA and operating profit and unlock new growth opportunities, reinforcing the company’s leadership within the U.S. system.

YUM’s Q3 Earnings & Revenue Discussion

In third-quarter 2025, the company's adjusted earnings per share (EPS) were $1.58, beating the Zacks Consensus Estimate of $1.47. The metric increased 15% from the prior-year quarter.

Quarterly revenues of $1.98 billion beat the consensus mark of $1.96 billion. Moreover, the top line increased 8% year over year.

Worldwide system sales, excluding foreign currency translation, increased 5% year over year, with Taco Bell rising 9% and KFC increasing 6%. The metric declined 1% year over year at Pizza Hut.

Divisional Performance of YUM in Q3

YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.

For third-quarter 2025, revenues from KFC totaled $879 million, up 12% from the prior-year quarter. Our model predicted the metric to increase 10.4% year over year. Comps in the division rose 3% against a decline of 4% reported in the prior-year quarter. 

The segment's operating margin expanded 150 basis points (bps) year over year to 44.6%. In the quarter under review, the KFC Division opened 760 gross new restaurants across 60 countries.

At Pizza Hut, revenues amounted to $240 million, up 1% year over year. Our model predicted Pizza Hut revenues to increase 1% year over year. Comps in the quarter decreased 1% compared with a decline of 4% in the year-ago quarter.

The segment's operating margin contracted 320 bps year over year to 35.1%. The Pizza Hut Division opened 289 gross new restaurants.

Taco Bell's revenues were $730 million, up 10% from the year-ago quarter's levels. Our model predicted the metric to increase 4.4% year over year. Comps in the segment increased 7% compared with 4% growth reported in the prior-year quarter. Its operating margin contracted 100 bps year over year to 36.6%.

Taco Bell opened 74 gross new restaurants in the quarter under review.

In the third quarter, the Habit Burger Grill division’s revenues amounted to $134 million, compared with $137 million reported in the prior-year quarter. Our model predicted the metric to be $143.6 million. Comps in the division grew 1% year over year. In the quarter under review, the division opened eight gross new restaurants.

Other Financial Details of YUM’s Q3 Earnings

As of Sept. 30, 2025, cash and cash equivalents totaled $1.05 billion compared with $616 million at 2024-end. Long-term debt, as of Sept. 30, 2025, was $11.5 billion compared with $11.3 billion at 2024-end.

YUM’s Long-Term Growth Targets

Yum! Brands reaffirmed its long-term growth algorithm, originally introduced in 2022, outlining sustained expansion targets over time. The company aims to deliver approximately 5% annual unit growth, drive around 7% yearly system sales growth (excluding foreign currency and the 53rd week), and achieve at least 8% annual growth in core operating profit.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Yum has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Yum has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Yum is part of the Zacks Retail - Restaurants industry. Over the past month, Cheesecake Factory (CAKE Quick QuoteCAKE - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended September 2025 more than a month ago.

Cheesecake Factory reported revenues of $907.23 million in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $0.68 for the same period compares with $0.58 a year ago.

For the current quarter, Cheesecake Factory is expected to post earnings of $0.98 per share, indicating a change of -5.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.

Cheesecake Factory has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.