Taco Bell and KFC led sales growth for Yum Brands in Q1 2025, with same store sales growing 9% and 2% respectively, according to a recent earnings call. Meanwhile, Pizza Hut’s comparable sales fell 2%. Across all of its brands, Yum’s same-store sales rose 3%.
“I’m incredibly proud of our teams’ ability to stay nimble and deliver industry-leading results in a complex consumer environment. This quarter, we achieved 8% core operating profit growth, demonstrating the strength and resilience of our business model,” said David Gibbs, CEO of Yum Brands.
Taco Bell saw traffic growth across all income cohorts, reported CNBC, which noted that menu items like steak and queso Crunchwrap sliders and crispy chicken nuggets drew diners to its restaurants.
A majority of KFC’s sales came from outside the United States. China, the brand’s largest market, saw system sales growth of 3%. According to CNBC, Wingstop and Raising Cane’s have recently overtaken KFC’s U.S. sales, pushing the brand down to the fifth-largest domestic chicken chain.
“In the U.S., sales started soft in January and improved through February and March,” CEO David Gibbs said about Pizza Hut on the company’s conference call. “With the last few weeks showing sequential gains in revenue and transaction growth, the U.S. business faced an intense competitive environment to drive momentum.”
Other factors driving Pizza Hut’s sales decline were expenses associated with transitioning stores from four franchise entities to new ownership as well as timing of technology spending within franchise advertising and other services expenses.
In Q1 2025, Yum Brands opened 751 new stores across 68 countries. KFC led the way with 528 openings, Pizza Hut opened 198 new locations and Taco Bell added 24 gross units.