Yum! Brands, Inc. (NYSE: YUM) reported fourth-quarter and full-year 2025 financial results on Wednesday, characterized by record-breaking unit development at KFC and double-digit digital sales growth. Highlighting a year of significant capital return, the Board of Directors approved a 6% increase in the quarterly cash dividend, raising the payout to $0.75 per share and marking the company’s tenth consecutive year of dividend growth.
The dividend adjustment brings the annualized payout to $3.00 per share, reflecting a payout ratio of approximately 54% based on full-year adjusted earnings. The quarterly distribution is scheduled for March 6, 2026, to shareholders of record as of the close of business on February 20, 2026. This increase follows a fiscal year in which the company returned roughly $1.35 billion to shareholders through dividends and share repurchases.
Quarterly Financial and Divisional Performance
For the quarter ended December 31, 2025, Yum! Brands reported GAAP diluted earnings per share (EPS) of $1.91, a 28% increase from the prior-year period. Excluding special items, adjusted EPS rose 8% to $1.73. Total revenues reached $2.51 billion, a 6% year-over-year increase, supported by a 5% rise in worldwide system sales (excluding foreign exchange and the impact of 2024’s 53rd week).
The performance across the company’s primary divisions remained fragmented:
Taco Bell: Continued its domestic leadership with 8% system sales growth and 7% same-store sales growth. Restaurant-level margins expanded to 25.7%.
KFC: Achieved 6% system sales growth, driven by a record 1,132 new unit openings in the fourth quarter alone.
Pizza Hut: Faced headwinds with a 5% decline in system sales and a 1% drop in same-store sales.
Digital Commerce: Digital sales exceeded $11 billion in the quarter, with the digital mix approaching 60%.
Consolidated Fiscal Year 2025 Data
The full-year results underscored the scale of the company’s global expansion. Yum! Brands opened a record 4,567 gross units during the year, bringing its total global count to over 63,000 restaurants.
| Full-Year 2025 Financial Summary | Value | Change (YoY) |
| Total Revenue | $7.55 Billion | +7% |
| Adjusted EPS | $6.05 | +10% |
| Operating Profit (GAAP) | $2.57 Billion | +7% |
| Digital System Sales | ~$40 Billion | +20% |
| Annualized Dividend | $3.00 | +6% |
Strategic Transformation and Leadership Commentary
A central pillar of the company’s strategy remains its “Raise the Bar” priorities, which focus on digital acceleration and brand optimization. The company’s “Byte by Yum” AI platform processed over 370 million digital transactions in 2025, contributing to a 20% annual increase in digital system sales.
Concurrent with the earnings release, management confirmed the commencement of a strategic review for the Pizza Hut brand to explore options for long-term value maximization. “Yum! delivered another year of outstanding results at KFC and Taco Bell with our fundamentals stronger than ever,” said Chris Turner, CEO of Yum! Brands. He noted that Taco Bell’s market share gains and KFC’s record development provided a “unique and unbeatable competitive advantage.”
CFO, Ranjith Roy, emphasized the company’s balance sheet strength, noting that the company achieved double-digit profit growth while navigating a “complex environment” and completing a significant acquisition of Taco Bell stores.
Market Context and Outlook
Yum! Brands’ results arrive as the broader quick-service restaurant (QSR) industry faces persistent labor inflation and shifting consumer spending habits. While the company’s diversified portfolio has provided a buffer, the $11.9 billion in long-term debt remains a focus for analysts, particularly as the company maintains its aggressive 5% annual unit growth target.
The company reaffirmed its long-term growth algorithm of 7% system sales growth and at least 8% core operating profit growth. With the latest dividend hike, Yum! Brands continues to position itself as a consistent income generator for investors, maintaining a yield of approximately 1.9% at current market prices.