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Yum Brands (YUM.N) beat Wall Street estimates for first-quarter same-store sales growth and profit on Wednesday, as affordable meal offers drove demand at Taco Bell and KFC chains amid economic uncertainty.
U.S. fast-food chains have stepped up promotions and offers across their portfolio over the past few quarters to bring back consumers who have avoided dining out due to budget constraints.
Like rivals McDonald's (MCD.N) and Burger King , Yum Brands has rolled out deals such as Luxe value menu starting at $3 at its Taco Bell divisions, which has helped boost sales and gain market share in key regions such as the U.S.
At KFC, the company has expanded and upgraded its beverage offerings, such as KWENCH range, to resonate with younger consumers.
Quarterly same-store sales at Taco Bell, which accounted for 38% of total revenue in 2025, were up 8%, while that at KFC were up 2%.
Yum Brands' worldwide same-store sales were up 3%, compared with analysts' estimates of 2.51% rise, according to data compiled by LSEG.
Yum's investments in back-end technology, such as the AI-backed "Byte by Yum" platform, have helped cut restaurant wait times and speed up deliveries.
On an adjusted basis, the company posted a profit of $1.50 per share in the quarter ended March 31, beating estimates of $1.38 per share.
However, Pizza Hut remained under pressure, recording a 6% fall in comparable sales in the U.S., extending its decline to 10 consecutive quarters. Yum had said last year it was exploring strategic options for Pizza Hut.
Rival Domino's Pizza (DPZ.O) earlier this week also posted weak quarterly sales and forecast soft fiscal 2026 growth amid challenges from stiff competition and strained consumer sentiment.
