Yum! Brands, Inc. (YUM): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and understand the real financial architecture of this restaurant giant, trying to map exactly how they print money in over 155 countries. Honestly, the story isn't about operating restaurants anymore; it's a sophisticated pivot to becoming a brand and technology licensing powerhouse. With 98% of their nearly 62,000 global units run by franchisees, their focus is on deploying proprietary AI and managing global brands, not managing payroll in every city. As of Q3 2025, their TTM revenue was $8.06 billion, but the real indicator of their success is the $10 billion in digital system sales they hit that same quarter. Dive into the nine blocks below to see how this asset-light, tech-first model is structured for maximum margin.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Key Partnerships

The operational backbone of Yum! Brands, Inc. relies heavily on a vast network of external partners, most notably its franchisees, who drive the majority of the company's physical presence and customer interactions.

Global Franchisee Network Scale

The structure is overwhelmingly franchised; 98% of nearly 61,000 global restaurant locations are operated by franchisees. This massive network spans over 155 countries and territories. The company supports this network with billions in investment, including through the Byte by Yum! platform. New restaurants are opened by brands and franchisees at a pace of approximately one every two hours.

Technology Acceleration with Nvidia

Yum! Brands, Inc. established a strategic partnership with Nvidia in March 2025, becoming Nvidia's first AI restaurant partner. This collaboration is designed to accelerate the deployment of proprietary AI across the system, integrated into the Byte by Yum! platform. The initial rollout targeted deployment in 500 restaurants across KFC, Taco Bell, Pizza Hut, and Habit Burger locations by the second quarter of 2025.

The focus areas for this AI integration include:

• Voice Automated Order-Taking AI Agents for drive-thrus and call centers.
• Computer Vision Enhanced Operations for optimizing drive-thru efficiency.
• Accelerated Restaurant Intelligence using AI-driven analytics for performance assessment.

Critical Supply Chain and Logistics Partners

Consistent ingredient sourcing is managed through global suppliers, where food safety standards are a key metric of partnership quality. The company emphasizes strong collaboration with these suppliers to maintain brand standards.

For last-mile logistics, Yum! Brands, Inc. relies on third-party delivery aggregators, a necessity given that digital sales now account for more than 50% of the company's total revenue. The proprietary Byte by Yum! platform also includes delivery optimization tools.

Social Impact Collaborations

Community initiatives are executed through partnerships that align with the company's Good Growth strategy. A key partner mentioned is Blessings in a Backpack, with whom employees participated in meal packing during Community Impact Month in 2025.

The broader social investment framework includes:

• The Unlocking Opportunity Initiative (UOI) has activated over 45 projects across 15 countries since 2020.
• UOI has impacted over 350,000 people by removing barriers to opportunity.
• In 2024, Yum! and its brands donated $70 million to support various brand efforts.

Finance: draft 13-week cash view by Friday.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Key Activities

You're looking at the core engine room of Yum! Brands, Inc. (YUM) operations as of late 2025. These activities are what turn strategy into dollars, and frankly, the numbers show where the focus is paying off.

Developing and deploying proprietary AI/digital platforms like Byte by Yum!

The digital push is massive; it's not just an add-on, it's central to throughput and engagement. By the third quarter of 2025, digital system sales hit a record of $10 billion, representing approximately 60% of total sales. This is up from a digital mix of about 55% on nearly $9 billion in digital sales in the first quarter of 2025. The global rollout of the Byte platform is a key driver here; in the second quarter of 2025, the platform accelerated systemwide digital sales by 18% year-on-year, pushing the digital mix to 57%. The technology stack includes tools like Byte Coach, Byte Commerce, and Byte Connect. To further this, Yum! Brands announced an industry-first collaboration with NVIDIA on March 18th to speed up AI development across its global restaurants. More than 25k of YUM's restaurants worldwide are already using Byte by Yum!.

Global brand marketing and advertising for KFC, Taco Bell, and Pizza Hut

While I don't have the precise marketing budget figures for 2025, the results of the brand efforts are clear in the same-store sales and unit growth figures. Taco Bell U.S. showed strong momentum, delivering 7% same-store sales growth in the third quarter. KFC International also saw success, with its U.K. market posting 9% same-store sales growth on 6% transaction growth in Q3 2025. The CEO has made staying relevant to the next generation of consumers a top priority going forward.

Franchisee selection, training, and performance management

Managing the franchise system is critical, especially since over 98% of the company's restaurants are operated by franchisees or licensees. Strengthening store-level economics for these partners is a stated focus. Restaurant-level margins show brand variance: KFC company-owned restaurants achieved 13.7% margins in Q3 2025, an improvement of 120 basis points year-over-year. Taco Bell U.S. company-owned margins hit 23.9%, up 50 basis points YoY. Pizza Hut company restaurant margins, however, showed sequential headwinds, falling to -12.2% in Q3 2025. On the engagement front, Taco Bell's active loyalty members increased by 45% year-on-year as of Q2 2025. Also, Yum! Brands expects to complete the acquisition of 128 Taco Bell restaurants in the Southeast US during the fourth quarter of 2025.

Menu innovation, including over 30 new products for Taco Bell in 2025

Innovation is clearly being doubled down on, particularly at Taco Bell. The brand unveiled 30 new menu items in development at its Live Más Live event in 2025, aiming to have two times the innovation seen in 2024. While the total number of actual releases for the year is cited as 14 new menu items and innovations, the pipeline is deep. Some of the items highlighted include the Quesocrisp Taco, Steak & Queso Crunchwrap Sliders, and Milk Bar Birthday Cake Churros.

Global unit expansion, targeting 4% to 5% net unit growth in 2025

Global expansion remains aggressive, with a long-term target of 5% unit growth. In the third quarter of 2025, the total unit count increased by 3%, with 1,131 gross new units opened in the quarter. KFC led the gross openings, adding 760 new restaurants across 60 countries, putting the brand on track to add nearly 3,000 new restaurants gross globally in 2025, a new record. The Taco Bell Division added 74 gross new restaurants, and the Pizza Hut Division added 289 gross new restaurants in Q3 2025. Taco Bell has a longer-term goal to more than double its international footprint to over 3,000 restaurants outside the U.S. by 2030, up from 1,150 in 2024.

Here's a breakdown of the gross unit development activity reported for the third quarter of 2025:

The overall unit count increase for the company was 3% in Q3 2025.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Key Resources

You're looking at the core assets that make Yum! Brands, Inc. (YUM) a global powerhouse; these aren't just menu items, they're the infrastructure that drives billions in revenue.

Iconic global brands form the bedrock of the entire operation. These are the names that command immediate recognition across nearly every continent, making the franchise model highly attractive to well-capitalized partners.

The global real estate footprint provides unmatched scale, which is a significant barrier to entry for competitors. As of late 2024, Yum! Brands, Inc. (YUM) franchised or operated a system of over 62,000 restaurants across more than 155 countries and territories. To put that in perspective, in 2024 alone, the brands and franchisees opened more than 4,500 new restaurants, surpassing the goal of 60,000 global units. It's a machine that opens a new restaurant nearly every two hours. Furthermore, the vast majority of this physical presence is asset-light for the parent company; 98% of the Concepts' units were operated by independent franchisees as of December 31, 2024.

The proprietary technology stack, branded as Byte by Yum!, is a critical, modern resource. This Software as a Service (SaaS) platform consolidates digital and AI-driven tools for franchisees.

• Byte by Yum! platform was operational in over 25,000 Yum! locations globally as of February 2025.
• The AI-powered Byte Coach, a recommendation tool for store managers, reached over 28,000-plus locations across the portfolio by Q3 2025, with 4,000 added internationally in that quarter.
• Digital sales reached 55% of total revenue as of June 2025, equating to nearly $9 billion annually.
• The company aims for "substantially all" of its software developers to use AI coding tools for the Byte platform by early 2026.

Finally, the resource of franchisee capital is essential because it funds the physical expansion. To become a new owner in the system, you need to meet stringent financial benchmarks. Specifically, the requirement calls for a minimum $1,500,000 net worth for new owners. That's the entry ticket to deploy that massive global real estate footprint.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Value Propositions

When you look at the value Yum! Brands, Inc. delivers, it really splits into two distinct groups: what they offer the end consumer and what they offer the people running the restaurants, your franchisees.

Customers: Quick, affordable, and craveable food across diverse cuisines.

You see the proof of craveability in the same-store sales (SSS) figures. For instance, Taco Bell U.S. delivered a strong 7% SSS growth in the third quarter of 2025, showing consumers really want what they are offering. Globally, Yum! Brands saw worldwide same-store sales increase by 3% for that same period. To keep that momentum, Taco Bell U.S. is focused on innovation, with management highlighting craveable innovation and value as key drivers for their 23.9% company-owned restaurant margins in Q3 2025, even while dealing with double-digit beef inflation. For affordability, look at KFC's Saucy sub-brand, which is explicitly targeting Gen Z with bold flavors and affordable pricing, planning to open 15 new U.S. locations by the end of 2025.

The diversity of the portfolio is key here, as you have the global reach of KFC, the domestic momentum of Taco Bell, and the ongoing strategic review of Pizza Hut. Here's a quick look at the system sales growth that reflects this diverse appeal (excluding foreign currency translation for Q3 2025):

Customers: Extreme convenience via digital ordering and delivery.

The focus on digital is not just a trend for Yum! Brands; it's now the majority of their business. In the third quarter of 2025, digital system sales hit a record of $10 billion, making up approximately 60% of total sales. That's a massive shift in how customers interact with the brand. This digital mix was slightly lower in Q2 2025 at 57% of sales, but still represented over $9 billion in sales. This digital penetration helps drive smoother operations and bigger average checks for the system. You can see the success of this transformation; for example, in Q1 2025, digital sales were approaching $9 billion at a 55% mix.

The company is actively deploying proprietary technology to enhance this convenience:

• The Byte platform and AI tools like Byte Coach, Byte Commerce, and Byte Connect scaled further in Q3 2025.
• This technology stack underpins the $10 billion in digital sales achieved in Q3 2025.
• The company is also integrating this AI-driven platform into its U.S. KFC revitalization efforts to reduce wait times.

Franchisees: Proven, scalable business model with high-margin tech tools.

For your franchisees, the value proposition is a system that is both massive and designed for their profitability. Yum! Brands is one of the world's largest fast food operators, boasting more than 61,000 restaurants across over 155 countries as of 2025. The model is heavily weighted toward franchising; about 90% of their total restaurants are franchised. This scale is what allows for the high-margin tech tools to be deployed effectively. The company provides these digital tools to franchisees effectively at cost, which directly strengthens franchise unit economics. Honestly, the margins on franchise revenue often exceed 90%, which is a clear indicator of the high-value, low-cost service being provided to partners.

Scalability is evident in their development pace. In Q3 2025 alone, the system opened 1,131 gross new units, marking a 3% increase in the total unit count for the quarter. KFC led this expansion, opening 760 gross new restaurants across 60 countries in that same quarter. Even company-owned restaurant margins showed improvement, hitting 13.7% in Q3 2025, up 120 basis points year-over-year.

Franchisees: Shared best practices and global supply chain leverage.

The sheer global scale translates directly into leverage for franchisees. The incoming CEO, Chris Turner, was instrumental in centralizing Yum! Brands' global supply chain, which is a direct benefit passed down to the system. This centralization helps manage costs and consistency across borders. Furthermore, the company actively shares best practices, which you can see in the brand-specific successes. For example, Taco Bell U.S. saw its company-owned restaurant margins rise 50 basis points year-over-year to 23.9% in Q3 2025, a testament to operational excellence being shared and implemented. The global playbook is clear: adapt menu items to local tastes, like the Rice Bowl in Japan or Pork Tacos in the Philippines, all while leveraging a unified technology and supply backbone.

Here's how the franchise structure supports this:

• Franchise and Property Revenues for the Taco Bell Division grew 11% in Q1 2025.
• KFC International unit growth was 7% in Q2 2025, showing successful international expansion strategies are being shared.
• The company is committed to a 5% average unit growth target long-term.

Finance: draft the 13-week cash view incorporating Q4 2025 projections by Friday.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Customer Relationships

You're looking at how Yum! Brands, Inc. is building deeper, more automated connections with its customers as of late 2025. The focus is clearly on digital channels to drive frequency and ticket size. Honestly, the numbers show a massive shift away from purely transactional, in-person service.

Automated, AI-driven service for order-taking and drive-thru efficiency

Yum! Brands, Inc. is making a significant push into proprietary AI, notably through a partnership with Nvidia, to automate customer interactions. The first wave of this involved rolling out AI-powered voice-ordering at the drive-through lane and over the phone, starting at 500 restaurants across the portfolio in the second quarter of 2025. The stated objective is to move all orders through digital channels rather than relying solely on human order-takers. This technology also enhances computer vision, using AI-powered cameras and real-time analytics to improve drive-thru speed and order accuracy. In one specific test of the voice AI, intervention from a team member was needed in only one conversation during an hour-and-a-half to two-hour testing period. Taco Bell has already deployed its voice AI in over 300 stores, processing more than 2 million orders through that system alone. The proprietary Byte system of AI technologies is also helping power advanced voice of the customer tools while improving the overall drive-thru experience.

Digital loyalty programs and personalized offers via mobile apps

The digital ecosystem, anchored by the proprietary Byte by Yum software-as-a-service platform, is central to driving repeat business. Early data indicates that loyalty program members exhibit a 12% increase in visit frequency after enrolling. This focus on retention is critical, especially as digital channels become the primary transaction method. For context, digital channels contributed to over 50% of the company's total sales mix in fiscal 2024, with digital sales rising about 15% that year. By the second quarter of 2025, digital as a share of total sales reached 57% overall, and by the third quarter, this momentum reportedly drove digital to 60% of sales. AI-driven personalization, fueled by data consolidated through Byte, allows for hyper-personalized messaging and recommendations. For instance, KFC is scaling its global loyalty program across 14 markets, and Taco Bell's integrated loyalty program expanded to 160 stores showing strong early results.

Targeted marketing campaigns focused on engaging the Gen Z demographic

Yum! Brands, Inc. is actively tailoring its marketing and menu to capture the Gen Z consumer, who now accounts for 40% of global consumers. This demographic strongly favors digital interaction; 94% of Gen Z use social media, and 98% own a smartphone, with 75% preferring it as their main device. To engage this group, the company is doubling down on Gen Z preferences, such as bolder spice levels at KFC and experiential items at Taco Bell. Marketing efforts leverage authenticity, as 54% of Gen Z customers are more likely to stick with brands that show behind-the-scenes content. Furthermore, direct purchasing via social platforms is common, with 57% of Gen Z having bought directly through a platform like Instagram or TikTok Shop. Limited-time offers are also a key driver, as 45% of Gen Z say such offers influence them to buy unplanned items.

• Gen Z social media users in the U.S.: 61.1 million
• Gen Z who trust creators they follow: 57%
• Gen Z who research brand values before first purchase: 49%

Self-service ordering via kiosks and proprietary digital channels

Self-service ordering via in-store kiosks is a major component of the digital strategy, which generated $30 billion in system sales last year, representing 45% of total system sales. Sales from in-store kiosks specifically saw an increase of 15 points as a percentage of sales in the fourth quarter of the prior year. Taco Bell generated 31% of its sales from digital channels in that same quarter. KFC has deployed kiosks in 500 U.S. locations and increased its international kiosk count by 70% over the past year, with Latin America markets planning to triple their installations this year. Kiosks are valued because they typically generate higher sales than counter service, and industry data suggests implementing them can increase the average ticket size by 10% to 30%. The global self-service kiosk market size was estimated at $37.2 billion in 2025.

The move to digital channels is clearly paying off in terms of sales mix and operational efficiency. If onboarding takes 14+ days, churn risk rises.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Channels

You're looking at how Yum! Brands, Inc. gets its craveable food into customers' hands across the globe. It's a massive, multi-pronged effort, heavily leaning on partners but increasingly driven by proprietary technology.

The foundation remains the vast network of franchised quick-service restaurants globally. This franchise-led, asset-light model minimizes capital expenditure while maximizing footprint expansion. As of late 2025, Yum! Brands operates across 155+ countries and territories, boasting a system of over 60,000+ restaurants. The pace of expansion is intense; in Q3 2025 alone, the unit count grew by 3%, adding 1,131 gross new units. This network is primarily supported by approximately 1,500 franchisees, who operate roughly 94% of the global units. For context, in 2016, the franchised count stood at 40,758 out of 43,617 total locations.

Next, you see the critical shift toward proprietary mobile apps and websites for direct digital ordering. This is where the company is capturing higher frequency and check sizes through frictionless experiences. Digital sales have become a core revenue driver. In Q3 2025, digital system sales hit a record of $10 billion, representing approximately 60% of the total digital mix. This is up from digital sales nearing $9bn and accounting for 55% of the total sales mix in Q1 2025. The company's proprietary SaaS platform, Byte by Yum!, is now deployed across 25,000 restaurants, integrating AI for inventory and ordering. The long-term goal is to have 50% of sales come through digital channels by 2030.

The reliance on third-party food delivery platforms (e.g., DoorDash, Uber Eats) is managed as part of the overall digital strategy. While the company uses these aggregators, the growth in digital sales is attributed to both click and collect adoption and stable third-party aggregator sales. The focus on proprietary tech like Byte by Yum! helps franchisees manage orders from all sources, boosting productivity.

Finally, there is a small number of company-owned stores for strategic testing, though the overall strategy is franchise-led and asset-light. In Q3 2025, company-owned restaurant margins were reported at 13.7%, showing an improvement of 120 basis points year-over-year. To maintain a strategic equity-owned base, Yum! Brands announced plans in Q3 2025 to acquire 128 Taco Bell restaurants in the Southeast U.S. during the fourth quarter. Back in 2016, the company held 2,859 company-owned restaurants.

• Digital sales mix reached a record 60% in Q3 2025.
• The Byte by Yum! platform is active in 25,000 locations.
• Company-owned margins in Q3 2025 were 13.7%.
• New unit openings in Q1 2025 totaled 751 across the system.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Customer Segments

You're looking at the customer base for Yum! Brands, Inc. (YUM) as of late 2025, and it's a massive, multi-layered group spanning nearly every corner of the globe. The foundation of this business is serving the global mass market, folks looking for a quick, reliable, and affordable meal. This is supported by a footprint of over 62,000 restaurants across more than 155 countries and territories. That scale means they are definitely hitting that convenience and value sweet spot for everyday dining.

The real action, though, is with the younger consumers, particularly Gen Z. This group demands digital fluency, and Yum! Brands is meeting them there. Digital system sales hit a record $10 billion in the third quarter of 2025, pushing the digital mix to a record approximately 60% systemwide. Taco Bell is leading this charge, with its U.S. same-store sales growing 7% in Q3 2025, fueled by craveable innovation and value deals that resonate with this demographic. Even KFC is adapting, expanding its Saucy sub-brand in the U.S. to target Gen Z with bold flavors, planning 15 new locations by year-end 2025. They aren't just eating; they're ordering via app, kiosk, and click-and-collect, making the digital experience key to frequency.

It's also important to recognize the segment that keeps the lights on: the financial partners. We're talking about the large corporate franchise groups, the entities that represent significant capital investment. Yum! Brands operates primarily through approximately 1,500 franchisees. These partners are sophisticated investors who look for strong unit economics, which the company supports by driving digital adoption, as seen when they provided digital tools to franchisees effectively at cost, helping drive franchise unit economics. Furthermore, the company is actively strengthening its equity-owned base by planning to acquire 128 high-margin Taco Bell restaurants in the Southeast U.S. in the fourth quarter, showing a focus on mature, high-value assets often managed by large internal or external groups. While direct data on high-net-worth individuals as consumers is sparse, their involvement is clear through the massive franchise investment structure.

Finally, we look at families and groups seeking easy meal solutions, which is historically Pizza Hut's core. While the Pizza Hut Division is currently undergoing a strategic review due to U.S. softness (system sales ex-FX down 7% in Q3 2025), the brand still represents a significant segment for group ordering and traditional family meals. The company is looking to leverage Pizza Hut's scale and experienced global franchise base to reclaim category leadership. This segment relies on the promise of easy, shareable food, a proposition the entire system, especially through digital ordering, is designed to support.

Here's a quick look at the scale of customer interaction and operational reach:

The focus on digital penetration is a direct action to capture the modern consumer who values frictionless experiences. With digital sales alone generating the equivalent revenue of one of the world's largest restaurant companies, this segment is arguably the most critical growth driver. Also, the company is committed to its long-term algorithm, targeting at least 8% Core Operating Profit Growth for the full year 2025 (excluding F/X and 53rd week).

The customer base is segmented by brand preference, but the unifying factor is the expectation of speed and digital access. You see this in the Taco Bell U.S. company-owned restaurant margins hitting 23.9%, a 50 basis point increase year-over-year, showing how well the tech stack is working for their most engaged domestic segment.

• Global reach across 155+ countries.
• Digital adoption by consumers at approximately 60% mix.
• Franchise partners are the primary operators of over 62,000 units.
• Taco Bell is the top-ranked North American franchise for the fifth straight year.
• KFC International continues strong development with 6% system sales growth in Q3 2025.

For Pizza Hut, the customer segment is currently being addressed through a strategic review aimed at maximizing long-term value, which implies a focus on reigniting consumer interest through better value and operational execution. The company expects to complete the acquisition of 128 Taco Bell restaurants in Q4, which will bolster their equity base with high-margin assets, indirectly supporting the overall ecosystem that serves all customer segments.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep the Yum! Brands, Inc. engine running, especially as they push hard on digital and scale. Honestly, these costs are where the rubber meets the road for their long-term profitability goals.

Technology and Digital Investment

Significant investment in technology and AI development is a major cost driver. The Byte by Yum! platform is central to this, encompassing online and mobile app ordering, point of sale systems, and kitchen and delivery optimization tools. This investment is designed to enable a faster, more impactful adoption of Artificial Intelligence across the system.

The company's 2025 capital expenditure guidance directly reflects this digital focus, alongside physical restaurant investment.

• Gross capital expenditures expected in 2025: approximately $350 million.
• This gross CapEx is driven by technology initiatives and continued investments in Taco Bell, Habit Burger & Grill, and KFC company restaurants.
• Net capital expenditures projected for 2025, after accounting for refranchising proceeds: approximately $295 million.

General & Administrative (G&A) Expenses

General & Administrative expenses include corporate overhead, which the company expects to manage carefully. For the fourth quarter of 2025, ex-special G&A is projected to increase by a mid-single-digit percentage rate year-over-year, aligning with the full-year guidance. To give you a concrete look at recent spending, the third quarter of 2025 provided some specific numbers.

That 7% increase in ex-special G&A for Q3 2025 lapped lower incentive compensation accruals from the prior year period. It's important to track these corporate costs as they don't directly tie to restaurant sales.

Interest Expense on Debt

Servicing the company's debt load is a fixed, non-negotiable cost. While the specific full-year 2025 projection between $500 million and $520 million wasn't explicitly confirmed in the latest filings, the second quarter of 2025 gives us a recent baseline for interest costs.

Here's the interest expense reported for the second quarter of 2025:

• Interest expense, net for Q2 2025 was $243 million.
• This compares to $238 million reported for the second quarter of 2024.

Also, note that a subsidiary of Taco Bell Corp. issued $1.5 billion of Securitization Notes in Q3 2025, with proceeds used to repay existing debt, which will impact future interest calculations.

Capital Expenditures Allocation

Beyond the technology spend embedded in the gross CapEx figure, the company outlines specific capital allocation priorities for 2025, which covers more than just new technology builds. This disciplined approach helps ensure capital is deployed where it can drive the highest returns, often through real estate optimization and brand redevelopment.

For 2025, capital allocation priorities include:

• Leasing and capex costs: $250 million to $300 million.
• Spend on redevelopment projects: $100 million to $125 million.
• Acquisitions including Structured Investments, net of dispositions: $100 million to $125 million.

Finance: draft 13-week cash view by Friday.

Yum! Brands, Inc. (YUM) - Canvas Business Model: Revenue Streams

You're looking at the core ways Yum! Brands, Inc. brings in cash, which is heavily weighted toward its highly profitable franchise model. The structure here is key to understanding their valuation, as it shifts the capital intensity away from owning every single location.

The primary, high-margin revenue source comes from franchise royalties and fees. While the exact royalty dollar amount isn't broken out separately from other franchise income in the Q3 2025 reports, the model's success is clear when you look at the margins of the restaurants Yum! Brands still operates directly. For instance, Taco Bell U.S. company-owned restaurant margins hit 23.9% in Q3 2025, and KFC company-owned restaurant margins were 13.7%. Pure royalty streams typically carry much higher margins than these company-owned restaurant results, underscoring the high-margin nature of the franchise fees.

Sales from company-owned restaurants represent a smaller portion of the overall business, though they are strategically important for testing and driving growth. The overall Company restaurant margin for Q3 2025 was reported at 15.8%. Yum! Brands, Inc. is even strategically buying back some locations; they announced plans to complete the acquisition of 128 Taco Bell restaurants in the Southeast U.S. in Q4 2025.

The digital transformation is a massive revenue driver, though it flows through the system sales first. Record digital system sales reached $10 billion in Q3 2025, representing a record digital mix of approximately 60% of total sales.

The focus on technology is evident in the CEO's priorities, which include expanding the Byte platform across more restaurants worldwide. While the search results confirm the existence and scaling of the Byte platform, which includes AI tools like Byte Coach, Byte Commerce, and Byte Connect, the specific revenue amount generated solely from technology fees charged to franchisees for using the Byte platform was not explicitly detailed as a separate line item in the Q3 2025 summary data available.

To give you the big picture of the company's scale leading into the end of the year, the Trailing Twelve Months (TTM) revenue as of September 30, 2025, was $8.061 billion. For context, the revenue reported for the single third quarter of 2025 was $1.98 billion.

Here's a quick look at the key financial scale points from Q3 2025:

The revenue streams are clearly anchored by the franchise model, supported by high-growth digital transactions, and enhanced by technology adoption. You'll want to track the margin difference between company-owned stores and the implied royalty stream closely. Finance: draft 13-week cash view by Friday.