Yum! Brands (YUM) is expected to report solid Q2 results, with continued momentum at Taco Bell and KFC despite higher gas prices and broader macro pressures, UBS said in a note Monday.
The company is set to release its Q2 results on July 30.
Investors are expected to focus on Taco Bell same-store sales, additional details from the Pizza Hut separation, updates to 2026 guidance, and commentary around the cyclosporiasis outbreak, the analysts said.
They added that while they expect some impact to 2026 operating profit growth, reflected in their earnings per share estimate moving to $6.45 from $6.73, they "believe any pressures will prove temporary and should not have a lasting impact on brand perceptions or performance."
The analysts said they expect Q2 net unit growth of 4.4%, with development tracking toward 2026 targets. Taco Bell is set to open 180 to 200 US stores annually, with 110-115 international openings per year. For KFC, they model 2026 unit growth of 4.9%, in line with the company's 5%+ target, "supported by franchisee demand, growth investments, strong unit economics, and sizable whitespace."
UBS has a buy rating and a $180 price target on Yum! Brands.
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