As Yum! Brands contemplates a sale of Pizza Hut, it’s already moving forward with another pricey transaction—one that shows the company is still more than willing to play offense in a tough macroeconomic environment.
In the fourth quarter, the world’s largest restaurant group will acquire 128 Taco Bell restaurants across the Southeast for $670 million, mostly with cash on hand. According to CFO Ranjith Roy, the stores are expected to bring about $70 million in incremental EBITDA to the company and add 1 point to operating profit growth. Taco Bell will initiate company-owned development in the market in 2027.
CEO Chris Turner emphasized that the move doesn’t signify a change in Yum!’s franchisee-led model. It’s more about grabbing a unique opportunity to accelerate development and profitability within the region.
“Our data would say there’s an opportunity for a lot more Taco Bell stores,” Turner said during Yum!’s Q3 earnings call. “And so we thought this was an opportunity to make this acquisition.”
READ MORE:
Taco Bell is Once Again the Fastest Drive-Thru in America
Taco Bell’s Sales Keep Climbing, No Matter the Economic Climate
Taco Bell’s Beverage-Forward Spinoff Live Más Café to Open 30 More Locations
Yum! isn’t a stranger to using company operations to spur expansion. For instance, Saucy—KFC’s new chicken tender spinoff—is corporately owned. The plan is to expand the brand to more than 10 outlets across Florida. Also, Yum! is investing in Taco Bell’s beverage-forward spinoff, Live Más Café. The restaurant group will open 15 of these stores in Texas while large franchisee Diversified Restaurant Group will open 15 throughout Southern California. On a global stage, Yum! took over roughly 220 units in the U.K. and Ireland back in 2024; the stated goal back then was to open 500 more restaurants in the area by 2030.
With Yum! heading toward this purchase, Taco Bell continues to outperform the quick-service segment. Same-store sales lifted 7 percent in Q3, driven by value-based promotions and digital offers. The chain saw growth across all income bands and attracted more younger guests and families throughout the third quarter.
The brand was boosted by collaborations with skateboard legend Tony Hawk and golf apparel company Bad Birdie, in addition to enticing options like the $3 Grilled Steak Burrito and an expanded beverage platform featuring Refrescas and Baja Blast Midnight. In 2026, the Mexican giant will add more innovation news around crispy chicken, fries, and drinks, and balance that with its Cravings Value Menu. Digital sales mixed at a record high, growing 28 percent year-over-year in the third quarter.
Taco Bell is still tracking toward $3 million AUV by 2030, and the beverage business continues to blossom. At the Live Más Café in Irvine, California, which opened in September, one in three orders included a Live Más Café-specific drink. Additionally, this year, 62 percent of all Taco Bell orders have included a drink. In fact, the chain has sold more than 600 million beverages this year alone as of August, a 16 percent increase compared to 2024. The ultimate goal is for drinks to earn $5 billion by 2030.
“The Taco Bell business continues to take share in the U.S.,” Turner said. “A lot has been written about the consumer. We’re not seeing consumer pullback in the Taco Bell business. We do think the consumer in the U.S. is cautious, but incredibly resilient. And the consumer is telling us that in Taco Bell, they are looking for three things: First, craveable food; second, a convenient and easy experience; third, unbeatable value. And Taco Bell provides the combination of those three in a way that no other brand can.”
The chain finished Q3 with 7,665 restaurants nationwide, which is a net gain of 61 locations versus the beginning of 2025.
Taco Bell’s international business is experiencing positivity as well, with 6 percent same-store sales growth. During the quarter, the brand expanded into Greece and Ireland. The brand ended the third quarter with 1,151 international outlets.
“We’re seeing tremendous same-store sales strength in a number of Taco Bell international markets,” Turner said. “And of course, I was on the ground in Spain just a few weeks ago, our largest Taco Bell international market, where we see the continued evolution and building scale in that brand outside of the U.S. So I think all of those things lead to that journey toward accelerating Taco Bell international unit growth.”
Meanwhile, Yum! is banking on KFC CEO Scott Mezvinsky—the former president of Taco Bell North America and International—carrying over many learnings of what makes the Mexican chain successful.
The third quarter was a bright spot in this journey, with U.S. same-store sales rising 2 percent. The brand hasn’t been shy about labeling its latest efforts as a full-blown comeback strategy. Earlier this year, the chicken concept pulled Colonel Sanders back into the spotlight, but with a more serious tone than previous iterations. At the time, KFC U.S. president Catherine Tan-Gillespie said, “We’re serious about reminding America exactly who we are: the game changer with a relentless pursuit of the best fried chicken.”
Turner noted that through differentiated social marketing around Spicy Wings and Wedges, KFC recaptured numerous customers who hadn’t engaged with the brand in more than a year.
KFC U.S. is also working with a renewed C-suite. In addition to Tan-Gillespie being promoted to CEO after serving as CMO and chief development officer, the company onboarded Wendy’s and Wingstop veteran Melissa Cash as CMO, former Walmart exec Francis “Rico” Arrastia as chief digital and technology officer, and longtime Yum! veteran Tiffany Furman as chief growth officer.
KFC’s domestic division had 3,580 stores at the end of Q3, a net loss of 89 restaurants versus the start of 2025.
The brand’s international same-store sales rose 3 percent in the third quarter. In the U.K., comps were up 9 percent and transactions increased 6 percent. In South Africa, same-store sales lifted 7 percent, driven by record engagement from younger generations. Other markets like South Korea and Brazil saw double-digit transaction growth in Q3.
KFC is on pace to add almost 3,000 gross new restaurants around the world this year, which would set a new record. There were 29,371 international stores at the end of Q3.
Habit Burger & Grill’s same-store sales rose 1 percent in Q3. It finished the quarter with 376 domestic stores and one international unit.