Yum! Brands, Inc.

- Yum! plans to refinance upcoming maturities with the ability to upsize debt offerings. - The company intends to return substantial excess capital to shareholders, subject to financing market conditions. - No explicit mention of new equity fundraising in the provided text. - Full-year interest expense is expected to be $510 million to $520 million, excluding any potential new debt issuances. - Yum! maintains a disciplined capital allocation strategy prioritizing strategic investments, a strong balance sheet, competitive dividends, and shareholder returns. - The net leverage ratio ended the quarter at approximately 3.8x, with a target around 4x. - Operating cash flow run rate is about $1.8 billion, expected to grow, supporting over $2.5 billion cash generation annually, providing capacity for debt refinancing and shareholder returns.

- Gross capital expenditures for the quarter totaled $75 million. - Yum! prioritizes strategic investments in the business to maximize shareholder value. - Focus on accelerating digital and technology innovation, including enhanced Byte Kitchen Display System with a smaller team to boost tech initiatives. - Planned continued rollout of Byte digital ordering and smart operations bundles across markets (e.g., UK, Australia) covering 2,000 incremental restaurants. - Investment in AI-driven technologies such as AI-powered A/B testing in drive-thrus, voice AI, and dynamic menu boards to enhance consumer experience and growth. - Strategic acquisitions like opportunistic Taco Bell franchise store buybacks provide financial and strategic benefits. - Optimization of restaurant build costs and introduction of new equipment suppliers/specifications to improve unit economics. - Rebranding and expansion of value menus to boost margins and restaurant-level profitability.

- Yum! Brands is confident in strong future growth, driven by key priorities: battling for the future consumer, accelerating restaurant unit economics, and leveraging the Byte platform. - Taco Bell U.S. has a long-term opportunity for 10,000+ stores, indicating over a decade of growth potential. - Taco Bell international sales were up 16% in Q1 with significant 2-year same-store sales growth in key markets (e.g., 23% UK, 18% Canada, 45% India). - KFC achieved 6% system sales growth in Q1, with acceleration in international markets, including double-digit growth in several countries. - New unit development remains strong: 130 new stores opened in Q1, with KFC opening 648 stores globally. - The Taco Bell beverage innovation platform and strong digital sales (63% digital mix, approaching $11B) contribute to incremental sales growth. - Yum! expects mid-single digit G&A growth excluding Pizza Hut, with continued profit growth and margin expansion.

- Yum! remains confident in meeting or exceeding its long-term growth algorithm excluding Pizza Hut. - Full-year 2026 expectations: - Taco Bell U.S. restaurant-level margins between 24.5% and 25.5%, improved from original plans. - Ex-special G&A growth (excluding Pizza Hut) expected mid-single digits. - Core operating profit growth excluding Pizza Hut was 10% in Q1. - Pizza Hut core operating profit expected to be about $70 million in Q2. - Capital generation is strong, with a run rate exceeding $2.5 billion annually, fueling investments and shareholder returns. - Continued focus on "raise-the-bar" priorities aiming for sustainable, multi-year growth. - Taco Bell’s momentum is strong, with growth strategies expected to elevate annual unit volumes and margin expansion. - KFC shows solid system sales growth and unit development; confident about future pipeline. - AI and technology investments are anticipated to enhance growth and operational efficiencies.

- In Q1, Yum! opened 130 new stores with strong unit development momentum. - KFC opened 648 new stores across 45 countries, including strong growth in China, Italy, Turkey, and Japan. - Taco Bell opened 30 gross units in Q1 (14 U.S., 16 international), with long-term U.S. opportunities of 10,000+ stores. - Taco Bell international system sales are growing strongly, with key markets like the U.K., Canada, and India showing significant same-store sales growth. - New markets for Taco Bell include Poland and Germany, with ongoing market expansions. - No change to KFC's unit development outlook despite geopolitical challenges; 90% of KFC's development outside China is contractual. - Middle East conflict has caused minor short-term delays in permits and equipment, but impact on development is limited. - KFC and Taco Bell franchises show strong development pipelines and high confidence in continued unit growth.