Yum! Brands (YUM) Q1 FY2026 earnings: revenue $2.1 billion, up 15.2% on the year

Yum! Brands, Inc. (YUM) reported revenue of $2.1 billion for Q1 FY2026, the quarter ended 31 March 2026, up 15.2% on the same quarter a year earlier. Net income was $432 million, up 70.8% on the year, and diluted earnings per share $1.55. The figures are the company's own, from the 10-Q it filed with the SEC on 6 May 2026.

Revenue

$2.1 billion

+15.2% on the year · -18.1% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

31.3%

30.7% a year earlier

Q2 FY2024Q1 FY2026

Net income

$432 million

+70.8% on the year · -19.3% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$1.55

+72.2% on the year · -18.8% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 3 kept.

EPS grew on higher operating profit: Diluted GAAP EPS was $1.55 against $0.90, and EPS excluding Special Items was $1.50 against $1.30. GAAP operating profit grew 17% and Core Operating Profit grew 6%.
Worldwide system sales rose 6%: Worldwide system sales grew 6% excluding foreign currency, and worldwide same-store sales grew 3%. Excluding Pizza Hut, system sales grew 7% and Core Operating Profit grew 10%.
Taco Bell U.S. same-store sales rose 8%: Taco Bell U.S. same-store sales rose 8%, with U.S. system sales up 10%. Division operating profit rose 16% to $281 million, while operating margin fell to 35.2%.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	2,059	2,515	1,787	-18.1%	+15.2%
Cost of revenue	677	816	520	-17.0%	+30.2%
Gross profit	1,382	1,699	1,267	-18.7%	+9.1%
Gross margin	67.1%	67.6%	70.9%
Operating income	644	738	548	-12.7%	+17.5%
Operating margin	31.3%	29.3%	30.7%
Pre-tax income	516	608	429	-15.1%	+20.3%
Income tax	84.0	73.0	176	+15.1%	-52.3%
Effective tax rate	16.3%	12.0%	41.0%
Net income	432	535	253	-19.3%	+70.8%
Net margin	21.0%	21.3%	14.2%
Diluted EPS	$1.55	$1.91	$0.90	-18.8%	+72.2%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	416	617	404	-32.6%	+3.0%
Capital expenditure	75.0	135	71.0	-44.4%	+5.6%
Free cash flow	341	482	333	-29.3%	+2.4%
Free cash flow margin	16.6%	19.2%	18.6%
Cash from investing	-80.0	-795	2.0
Cash from financing	-375	-102	-443
Depreciation and amortisation	60.0	67.0	45.0	-10.4%	+33.3%
Share-based compensation	24.0	16.0	21.0	+50.0%	+14.3%
Buybacks	185	178	229	+3.9%	-19.2%
Dividends paid	207	197	198	+5.1%	+4.5%
Dividend per share	$0.75	n/a	$0.71		+5.6%
Diluted shares, weighted	279m	281m	282m	-0.7%	-1.1%
Shares outstanding at period end	276m	276m	278m	-0.3%	-0.8%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	-7,283	-7,325	-7,804
Short-term borrowings	n/a	38.0	30.0
Debt	11,954	11,872	11,327	+0.7%	+5.5%
Operating lease liabilities	1,190	1,174	869	+1.4%	+36.9%
Finance lease liabilities	146	148	67.0	-1.4%	+117.9%
Other liabilities	2,204	2,290	2,170	-3.8%	+1.6%
Total liabilities and equity	8,211	8,197	6,659	+0.2%	+23.3%
Fixed assets	1,622	1,605	1,338	+1.1%	+21.2%
Goodwill	971	969	746	+0.2%	+30.2%
Intangible assets	899	909	418	-1.1%	+115.1%
Investments	n/a	0.0	0.0
Cash and equivalents	689	709	607	-2.8%	+13.5%
Other assets	4,030	4,005	3,550	+0.6%	+13.5%
Total assets	8,211	8,197	6,659	+0.2%	+23.3%

Questions

What was Yum! Brands' revenue in Q1 FY2026?

Yum! Brands (YUM) reported revenue of $2.1 billion for Q1 FY2026, the quarter ended 31 March 2026, up 15.2% on the same quarter a year earlier.

How much did Yum! Brands earn in Q1 FY2026?

Net income for Q1 FY2026 was $432 million, up 70.8% on the year, and diluted earnings per share $1.55.

When did Yum! Brands report Q1 FY2026 results?

Yum! Brands filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 6 May 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,890	1,547	1,636	1,640	2,019	1,645	1,687	1,708	2,036	1,598	1,763	1,826	2,362	1,787	1,933	1,979	2,515	2,059	2,169	2,054
Cost of revenue	495	402	415	402	526	403	415	421	535	400	470	523	727	520	560	587	816	677	700	679
Gross profit	1,395	1,145	1,221	1,238	1,493	1,242	1,272	1,287	1,501	1,198	1,293	1,303	1,635	1,267	1,373	1,392	1,699	1,382	1,469	1,375
Gross margin	74%	74%	75%	75%	74%	76%	75%	75%	74%	75%	73%	71%	69%	71%	71%	70%	68%	67%	68%	67%
Operating income	502	509	554	546	578	523	573	613	609	520	607	619	657	548	622	666	738	644	655	2,317
Operating margin	27%	33%	34%	33%	29%	32%	34%	36%	30%	33%	34%	34%	28%	31%	32%	34%	29%	31%	30%	113%
Interest expense	539	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Pre-tax income	407	398	390	447	427	371	478	505	464	383	487	502	528	429	499	541	608	516	533	2,195
Tax rate	19%	-0%	43%	26%	18%	19%	13%	18%	6%	18%	25%	24%	20%	41%	25%	27%	12%	16%	-60%	26%
Net income	330	399	224	331	371	300	418	416	463	314	367	382	423	253	374	397	535	432	853	1,623
Net margin	17%	26%	14%	20%	18%	18%	25%	24%	23%	20%	21%	21%	18%	14%	19%	20%	21%	21%	39%	79%
Diluted EPS	$1.10	$1.36	$0.77	$1.14	$1.29	$1.05	$1.46	$1.46	$1.62	$1.10	$1.28	$1.35	$1.49	$0.90	$1.33	$1.41	$1.91	$1.55	$3.08	$5.92
Operating cash flow	414	253	269	453	452	349	329	477	448	363	342	471	513	404	446	543	617	416	507	475
Capital expenditure	92.0	42.0	55.0	61.0	121	62.0	60.0	57.0	106	49.0	50.0	52.0	106	71.0	71.0	94.0	135	75.0	100	87.0
Free cash flow	322	211	214	392	331	287	269	420	342	314	292	419	407	333	375	449	482	341	407	388
Buybacks	734	343	214	157	486	50.0	0.0	0.0	0.0	0.0	50.0	277	114	229	109	36.0	178	185	489	528
Dividends paid	146	165	162	162	160	169	170	169	170	189	188	188	187	198	197	197	197	207	206	203
Shares outstanding	289m	285m	285m	282m	280m	280m	280m	280m	281m	282m	281m	279m	279m	278m	278m	278m	276m	276m	273m	268m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2026, filed 6 May 2026: the filing.