Yum Brands Eyes Pizza Hut Exit—Is a Breakup the Best Way to Unlock Value?

Yum! Brands reported its second quarter results for 2025, showcasing a mix of growth and strategic shifts amidst a challenging consumer environment. The quarter was highlighted by system sales growth of 4%, with contributions from KFC International and Taco Bell US, which delivered positive transaction growth. Yum! Brands also added 386 net new units, maintaining its trajectory of expanding its footprint globally. The company’s digital sales continue to grow, reaching a milestone of 57% digital mix, assisted by the rollout of the Byte platform and AI-driven personalized advertising. While these growth metrics are promising, Yum! Brands also faces challenges in underperforming regions, including the US and parts of Europe. KFC, which comprises a significant portion of Yum!’s operating profit, struggled with value perception and inconsistent consumer experiences in these regions.