Stonegate Capital Partners Initiates Coverage on Yum! Brands (NYSE:YUM)

<p class='reportable-dateline'><strong>AUGUST 26, 2026</strong></p><p class='reportable-excerpt'>DALLAS, TX -- August 26, 2026 -- Yum! Brands (NYSE: YUM): Stonegate Capital Partners initiates coverage on Yum! Brands (NYSE: YUM). Yum!’s 2Q26 provides evidence that the post-Pizza Hut earnings model is becoming increasingly centered on Taco Bell’s U.S. growth and KFC’s international development runway. Ex-Pizza Hut, system sales increased 7%, units 6%, same-store sales 4%, and Core Operating Profit 8%. The July food safety issue creates a near-term Taco Bell interruption, but we view the impact as temporary. Sales trends have improved from the July 18 low, online sentiment has returned to pre-issue levels, and brand-love measures remain intact. The quarter also reinforces the broader operating model, with stronger restaurant-level performance supporting franchisee returns, faster unit development, and growth in Yum!’s recurring royalty base.</p><p>To view the full announcement, including downloadable images, bios, and more, <a href='https://stonegateinc.reportablenews.com/pr/stonegate-capital-partners-initiates-coverage-on-yum-brands-nyse-yum' class='reportable-link'>click here</a>.</p><div class='reportable-key-takeaways'><h3>Key Takeaways:</h3><ul><li>Ex-Pizza Hut results highlight the earnings profile of the remaining portfolio, with Ex-Pizza Hut 2Q26 system sales increasing 7%, units 6%, same-store sales 4%, and Core Operating Profit 8%. Taco Bell remains the primary U.S. growth engine, while the July food-safety issue creates a near-term interruption that management currently expects to pressure 3Q sales and margins.</li><li>KFC provides the largest long-term development opportunity, supported by attractive franchisee economics and significant international whitespace. The division opened 660 gross restaurants across 55 markets in 2Q26, grew units 7%, and continues to target higher AUVs and same-store sales alongside an estimated 20,000-unit whitespace opportunity.</li><li>The Pizza Hut divestiture should leave YUM increasingly concentrated around its higher-growth, predominantly franchised KFC and Taco Bell businesses while providing approximately $2.3B of expected aggregate net proceeds. We expect revolver repayment and substantial share repurchases to complement continued unit development and royalty growth across the remaining portfolio.</li></ul></div><a href='https://stonegateinc.reportablenews.com/pr/stonegate-capital-partners-initiates-coverage-on-yum-brands-nyse-yum'><img src='https://cdn.filestackcontent.com/6FuxWslTQ2ff5fXFOrCw' class='reportable-featured-image' /><p align='center'><i>Click image above to view full announcement.</i></p></a><hr class='company-boilerplate-rule' style='border: 0; border-top: 1px solid rgba(0,0,0,0.1);'><p class='company-boilerplate'><p><strong>About Stonegate<br></strong>Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.</p></p><div class='reportable-contacts'><h3>Contacts:</h3><p class='reportable-contact'>Stonegate Capital Partners<br>(214) 987-4121 <br><a href='mailto:info@stonegateinc.com'>info@stonegateinc.com</a></p></div><p>Source: <a href='https://stonegateinc.reportablenews.com/'>Stonegate, Inc.</a></p><p>Distributed by: <a href='https://reportablenews.com'>Reportable, Inc.</a></p>