Yum Brands (YUM) Q2 2026 earnings

Yum Brands on Thursday reported mixed quarterly results, and said the cyclospora outbreak tied to Taco Bell restaurants damaged sales at the chain in its current quarter.

“The brand has seen a meaningful near-term sales impact ,” CEO Chris Turner said on the company’s earnings conference call, adding that the company expects the downturn to be a temporary problem for Taco Bell.

Since the Food and Drug Administration first linked the parasitic outbreak to iceberg lettuce served by Taco Bell in mid-July, daily traffic to the chain’s locations has plunged by double-digit percentages, according to Placer.ai data. Yum depends on Taco Bell as a “growth engine” for the company, and the crisis puts that title in jeopardy, at least in the near term.

Sales trends have been “steadily improving” over the last 10 days, according to Turner, and brand sentiment on social media has returned to pre-crisis levels.

“Elevated uncertainty initially weighed on consumer demand, and since then, consumers have become increasingly aware that this is an industry-wide issue, not an issue specific to Taco Bell,” Turner said.

Other restaurant chains not implicated in the outbreak have also seen their sales slip. Chipotle Mexican Grill executives said consumers’ mistrust of chains serving fresh lettuce weighed on sales in the second half of July.

The results Yum reported are for its second quarter ended June 30, before it was tied to the foodborne illness outbreak. The restaurant company does not typically provide an outlook for same-store sales growth or earnings per share for the full year or the next quarter.

Here’s what Yum reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $1.62 adjusted vs. $1.58 expected
• Revenue: $2.17 billion vs. $2.2 billion expected

Yum reported second-quarter net income of $853 million, or $3.08 per share, up from $374 million, or $1.33 per share, a year earlier.

Excluding charges related to its strategic review of Pizza Hut and other items, the restaurant company earned $1.62 per share.

Net revenue climbed 12% to $2.17 billion, lifted by new restaurant openings.

The company’s global same-store sales rose 3% in the quarter, roughly in line with StreetAccount estimates of 2.9% growth.

Taco Bell’s same-store sales jumped 7% in the quarter. The Mexican-inspired chain has long been the top performer in Yum’s portfolio.

KFC reported same-store sales growth of 2%. In China, its largest market, system sales rose 6%, according to Yum.

Pizza Hut’s same-store sales slipped 1%. Last month, Yum announced the sale of the long-struggling pizza chain to private equity firm LongRange Capital and Yum China for $2.7 billion.

Correction: Yum Brands on Thursday reported mixed quarterly results. An earlier version misstated the day.