02:37 PM EDT, 07/23/2025 (MT Newswires) -- Yum! Brands ( YUM ) long-term growth outlook appears intact with expected support from Taco Bell to continue in H2 and a "strong" growth forecast at KFC ( YUM ) international despite looming macroeconomic challenges, UBS said in a Wednesday note.

Investor sentiment is more cautious on an expected slump in Taco Bell trends due to concerns about macro challenges in some countries and a muted US quick service restaurant segment forecast, according to the note.

YUM's core brands are well-positioned worldwide and are likely to post "solid" multi-year unit expansion and earnings growth, with the company's Byte by Yum! technology platform expected to provide "notable benefits" in the coming years, analysts said.

UBS said it expects 1.5% same-store sales growth for the company in Q2, including 4% growth at Taco Bell, a 2% increase at KFC Global, and a 3% drop for Pizza Hut globally.

Taco Bell's H2 product and marketing calendar is expected to "be even better" than Q2, the analysts said, adding they expect 5% same-store sales growth for Taco Bell in H2. For KFC ( YUM ), the analysts said they expect "solid" international trends as growth in certain key markets and a recovery in the Middle East continues.

UBS reiterated a buy rating on the stock and maintained a price target of $180 per share.

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