Value, innovation, cultural relevance drive another robust quarter for Taco Bell

Sales and unit growth

For Yum Brands, the first quarter of 2026 was, once again, the Taco Bell show.

The company’s global system sales grew 6% for the quarter, with KFC up 6% and Taco Bell 10% higher. Pizza Hut sales were flat. Meanwhile, global same-store sales rose 3% systemwide, driven by an 8% lift from Taco Bell and a 2% increase from KFC global. Same-store sales were flat for Pizza Hut and up 5% for Habit Burger & Grill.

Yum Brands is no longer breaking out same-store sales for the KFC U.S. division, a decision CFO Ranjith Roy said was “reflective of its scale in the overall Yum portfolio, where it currently comprises less than 5% of operating profit excluding Pizza Hut.”

On the development front, Yum’s global unit growth was up 5%, including 1,030 gross new units.

During the company’s earnings call Wednesday before market, CEO Chris Turner highlighted Taco Bell’s continued outperformance in the QSR category. The chain’s 8% same-store sales lapped plus-9% from the same period a year ago and marked its eighth consecutive quarter of domestic growth. Taco Bell represents 39% of Yum Brands’ operating profit.

Taco bell performance

Turner said the chain has successfully expanded use occasions among light consumers, which has led to perception gains. It has also created momentum from its Luxe Value Menu and is “battling for the future consumer by pairing unbeatable value and innovation with cultural relevance.” For example, Taco Bell’s Live Más Live event in Los Angeles in early March featured celebrity appearances from Jason Sudeikas, Benson Boone, Doja Cat and others, while unveiling more than 20 menu innovations for the year ahead.

“Live Más Live is a powerful example of Taco Bell's unique ability to create a marquee brand moment (to) amplify innovation at scale and reinforce its position at the center of culture,” Turner said.

He added that the chain has also improved operations, with customer satisfaction scores increasing each quarter throughout the past year.

Kfc global growth

KFC global was also a highlight, with 6% system sales growth during the quarter. KFC represents 53% of Yum’s divisional operating profit. Turner said the chain’s momentum is driven by menu innovation, with eight of its top 20 markets launching a new sauce platform, for example.

“In parallel, KFC is leveraging its new global innovation pantry, which helps markets replicate successful, proven menu innovation,” Turner said, pointing to the success of Picklemania in the United Kingdom, which drove a 7% same-store sales increase in Q1. Picklemania was translated from the Canadian system after a successful launch in 2025 and has since become the UK’s most successful limited-time offer in the market’s history.

“As a result, KFC continues to add more food options with rice bowls, boneless chicken and occasion-led innovation,” Turner said.

KFC generated 7%-unit growth in Q1 and a record number of gross builds, adding new stores in 45 countries.

Digital results and expansion

Turner said in addition to better operational execution, buzzworthy innovation and compelling value, Yum’s brands are also delivering stronger digital results. The company’s digital sales were nearly $11 billion in Q1 with a record mix of 63%.

This year, KFC is planning a loyalty expansion to 20 additional markets, putting the brand on a path to triple its 90-day active user base.

Further, the company’s Byte by Yum platform continues to roll out to global markets. In Q1, Taco Bell UK became the first international market to roll out both the digital ordering and smart ops bundle, shifting from previous, disparate third-party technologies.

“The capabilities in the Byte platform provide Taco Bell UK with more integrated digital and restaurant experiences and greater opportunities for personalization on digital channels and in the restaurant,” Turner said. “In addition, use cases for AI continue to multiply, reinforcing the value of Yum owning our digital ecosystem. This gives Yum a powerful advantage.”

Yum didn’t provide much detail about Pizza Hut’s “strategic review,” announced in November, other than noting that the process continues to progress and executives expect the review to be completed this year.

“The objective of the review is to create value for Yum, Pizza Hut and its franchise partners by determining the optimal approach to capitalize on Pizza Hut's structural advantages, its strong brand equity, experienced franchise partners and meaningful scale,” Roy said.

He added that during Q1, Pizza Hut saw strength across many international markets, including 11% system sales growth in the Middle East and 8% system sales growth in both China and Latin America.