Yum! Brands (YUM) FY2025 10-K Annual Report

Filed: Feb 20, 2026
Consumer Discretionary
Retail-Eating PlacesSEC EDGAR

Yum! Brands (YUM) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 20, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Yum! Brands FY2025 10-K Analysis

Business Overview

  • Core business model: Global quick-service restaurant operator with brands KFC, Pizza Hut, Taco Bell
  • Emphasis on expanding digital ordering and delivery capabilities amid increasing consumer demand
  • Strategic focus on enhancing customer experience through technology integration and menu innovation
  • Employee count increased to approximately 41,000, reflecting growth in global operations
  • Noteworthy focus on sustainability initiatives and reduction of environmental impact across supply chain

Management Discussion & Analysis

  • Revenue $8.214B, up 9% YoY from $7.549B in 2024; system sales ex-FX +5% worldwide and +6% KFC, +8% Taco Bell, -2% Pizza Hut
  • Operating profit $2.574B, margin 31.3% (2,574/8,214) vs 31.8% (2,403/7,549) in 2024; core operating profit $2.684B, up 5% YoY, excluding special items +7%
  • Best segment: KFC operating profit $1.503B (+10% YoY core op. profit), worst: Pizza Hut operating profit $340M (-9% YoY core op. profit)
  • Net income $1.559B, up 5%; EPS $5.55, up 6%; company restaurant profit margin 15.7% down from 16.9% in 2024
  • Capital allocation: 1,939 net new units opened; no explicit buyback/dividend/capex figures disclosed
  • Outlook: ongoing Pizza Hut strategic review expected to incur further costs in 2026; uncertain outcomes; impacts of 2025 US tax reform (OBBBA) expected minimal on effective tax rate (22.7% ex-special items)

Risk Factors

  • Regulatory risk from evolving franchise and licensing fees subject to international trade laws in 155 countries impacting 97% franchised 63,000+ restaurants
  • Macroeconomic exposure to social or civil unrest causing temporary restaurant closures affecting same-store sales growth calculations across global operations
  • Operational risk in rapidly scaling Habit Burger & Grill fast-casual concept potentially affecting unit economics and franchisee performance
  • Competitive risk from digital platform innovation through Byte by Yum! needing to outperform third-party delivery and ordering technologies
  • Financial risk targeting consolidated net leverage ratio balancing shareholder returns and cost of capital amid capital-light franchisor model investments

Yum! Brands FY2025 Key Financial Metrics
XBRL

Revenue

$8.2B

+8.8% YoY

Net Income

$1.6B

+4.9% YoY

Operating Margin

31.3%

-50bp YoY

Net Margin

19.0%

-70bp YoY

ROE

-21.3%

-185bp YoY

Total Assets

$8.2B

+21.9% YoY

EPS (Diluted)

$5.55

+6.3% YoY

Operating Cash Flow

$2.0B

+19.0% YoY

Source: XBRL data from Yum! Brands FY2025 10-K filing on SEC EDGAR. All figures in USD.

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