Yum! Brands, Inc. ( YUM ) shares traded lower in the premarket session on Tuesday.

The company reported second-quarter adjusted earnings per share of $1.44, missing the analyst consensus estimate of $1.46. Quarterly sales of $1.93 billion missed the Street view of $1.939 billion.

Company restaurant margin in the quarter under review contracted to 16.3% from 17.8% in the year-ago period.

Also Read: KFC Betting $2 Billion On Britain’s Fried Chicken Boom

Worldwide, system sales grew 4% on a constant-currency basis, driven by Taco Bell’s 6% increase and KFC’s 5% growth.

Unit count also rose 3% during the quarter, with 871 gross new restaurants added to the system.

In the quarter, KFC ( YUM ) opened 566 gross new restaurants across 58 countries as its company-owned restaurant margin climbed modestly to 12.1% year-over-year.

The Taco Bell Division added 50 new restaurants across 10 countries, with U.S. system sales up 6% and International system sales (constant-currency) accelerating 11%.

Pizza Hut opened 254 gross new restaurants in 32 countries, although its operating profit growth was pressured down seven percentage points in total.

Digital sales remained strong, topping $9 billion and accounting for a record 57% of the total sales mix.

Additionally, favorable foreign-currency translation resulted in a $4 million boost to divisional operating profit.

On June 17, the firm announced that it has elected Chris Turner to succeed David Gibbs as CEO, effective October 1, 2025. Gibbs will serve as an adviser to the company until the end of 2026.

“I couldn’t be more confident passing the torch to Chris Turner, whose deep understanding of our business and bold vision will continue to propel Yum forward,” Gibbs said.

The company exited the quarter with cash and equivalents totaling $677 million, up from $616 million in the year-ago period.

Long-term debt at the end of the quarter was $10.418 million, compared with $11.306 million in the year-ago period.

Price Action: YUM shares are trading lower by 2.04% to $144.00 premarket at last check on Tuesday.

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