Jefferies cuts forecasts for Yum! Brands stock as Taco Bell sales weaken

Published on 10/15/2026 at 13:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Jefferies cuts 2026 earnings per share to USD 6.09 from USD 6.46. Jefferies keeps a USD 147.00 target for Yum! Brands stock.

Forecast pressure and reporting date

Jefferies lowered Taco Bell's third-quarter same-store sales forecast to a 2.00 percent decline on October 14, 2026.
Jefferies kept a USD 147.00 price target while cutting Yum! Brands' 2026 earnings forecast to USD 6.09.
Yum! Brands is expected to report third-quarter 2026 results on November 3, 2026.

Bauhaus-Poster mit Schriftzug FAST FOOD, Symbolbild Yum! Brands Inc. US9884981013 — Geometrisches Bauhaus-Poster mit Sektor-Schriftzug FAST FOOD steht stellvertretend für Yum! Brands Inc. ISIN US9884981013, Illustration mit AI erstellt.

Yum! Brands (ISIN US9884981013) faces a 2.00 percent Taco Bell same-store sales decline in the third quarter, according to Yahoo Finance on October 14, 2026. Jefferies cut its 2026 earnings-per-share forecast from USD 6.46 to USD 6.09 and kept a USD 147.00 price target.

What does the sales cut mean?

The immediate pressure is concentrated at Taco Bell. Jefferies lowered its third-quarter same-store sales forecast from flat growth to a 2.00 percent decline, while its fourth-quarter sales forecast fell from 4.00 percent to 3.00 percent. The broker also reduced its full-year 2026 sales-growth forecast from 4.80 percent to 4.00 percent.

The Pizza Hut disposal adds a second financial variable. Jefferies estimated that the removal of 20,000 restaurants and USD 300.00 million in operating profit could dilute 2027 earnings per share by 10.00 percent, while planned quarterly buybacks were raised to USD 400.00 million in the forecast. The same report kept KFC same-store sales at 1.80 percent for both the third and fourth quarters.

Three dated Yum events

Yum! Brands reported second-quarter 2026 revenue of USD 2.169 billion on July 30, 2026, up 12.20 percent year over year, while adjusted earnings per share reached USD 1.62 versus USD 1.44 a year earlier, according to FinDog. On October 6, 2026, Guggenheim maintained a Buy rating and a USD 155.00 target, as reported by TradingView. Jefferies then cut its forecasts on October 14, 2026, making the Taco Bell outlook the latest dated event.

When are results due?

Yum! Brands is expected to report third-quarter 2026 results on November 3, 2026, before the U.S. market opens, with a conference call scheduled for 8:15 a.m. ET, according to MarketBeat. The published consensus calls for USD 2.11 billion in revenue and USD 1.53 in earnings per share.

Yum stock and the next test

The next results release will show whether Taco Bell's weaker forecast is confined to near-term traffic or is spreading across the wider brand portfolio. Yum! Brands had generated 12.20 percent revenue growth in the second quarter, but the latest forecast cuts put greater weight on execution at Taco Bell and the earnings effect of the Pizza Hut sale.

Yum! Brands was trading at EUR 131.88 at Lang & Schwarz on October 15, 2026 at 12:58 p.m. CEST. The further course of trading is shown by the continuously updated real-time quote of Yum! Brands stock.