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KFC-parent Yum Brands tops sales estimates as Taco Bell demand holds firm
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KFC-parent Yum Brands tops sales estimates as Taco Bell demand holds firm
May 25, 2025 9:48 PM

(Reuters) -Yum Brands ( YUM ) beat Wall Street estimates for first-quarter comparable sales on Wednesday, helped by robust demand at its Taco Bell locations in the U.S. and KFC ( YUM ) outlets in international markets.

The company's worldwide comparable sales for the first quarter ended March 31 increased 3%, ahead of the average analyst estimate of a 2.76% rise, according to data compiled by LSEG.

The results come at a time when consumer spending on dining out slowed in February and March due to sticky inflation and worries about the Trump administration's tariff policies.

However, visits to Tex-Mex food chain Taco Bell rose 3.7% in the first quarter in the United States, compared with a 1.6% drop in the overall quick-service restaurants category, according to research firm Placer.ai.

Taco Bell also spruced up its value meal offerings at the start of the year, adding a $9 price point for five menu items.

U.S. consumers have been on the lookout to keep their dine-out spending in check. Taco Bell's value-meal offer starts at $5 for a 5-layer burrito, a taco, cinnamon twists and a medium fountain drink.

Yum Brands' ( YUM ) KFC ( YUM ) international division, which together with Taco Bell makes up more than 80% of the company's core operating profit, also reported comparable-sales growth of 3%, handily beating estimates of 1.6%.

Total sales in China, its biggest market, grew 3% in the quarter, following a 5% rise in the preceding three-month period.

The Pizza Hut-parent reiterated its long-term annual core operating profit growth target of 8% at a time when companies are tempering their full-year forecasts with consumer sentiment weakening in the United States.

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