Yum Brands reported its second-quarter 2025 earnings with adjusted EPS of $1.44, slightly below the estimated $1.46, and total revenue of $1.93 billion, just under the $1.94 billion forecast. Worldwide same-store sales increased by 2.0%, missing the estimate of 2.37%. The company attributed weaker performance primarily to challenges at KFC and Pizza Hut in the U.S., where same-store sales declined 5% each, and Habit Burger Grill, which fell 4%. Yum Brands cited "inconsistent" value messaging as a key factor affecting sales at these brands. In contrast, Taco Bell showed strength with a 4% increase in same-store sales, continuing to grow sales and transactions across all income groups and reportedly attracting customers from fast-casual chains. Digital sales now account for 57% of total sales, up seven percentage points year-over-year. Despite higher ingredient costs and muted demand impacting the overall business, Yum Brands' worldwide system sales grew 4% excluding currency effects, led by Taco Bell at 6% and KFC at 5%. Meanwhile, Yum China, which operates KFC and Pizza Hut in China, reported a 14% rise in operating profit to $304 million and a 4% increase in revenue to $2.8 billion, although its shares fell 6%. The broader market saw Yum Brands' shares drop as much as 5% following the earnings release amid concerns over rising costs and tariff impacts. The company is focusing on value deals and artificial intelligence as strategies to address these challenges.