Core operating profit increased 2% to $646 million, with ex-special EPS up 7% year-over-year to $1.44; reported EPS was $1.33.
Digital sales grew 18% this quarter, pushing the digital mix to a record 57%, with KFC's digital sales growing 22% and Taco Bell U.S. digital orders at 41%.
Franchise and property expenses increased by $16 million, driven by global franchise convention spend and lapping prior year bad debt recoveries.
G&A expenses ex-special increased 7% year-over-year to $274 million, including incentive compensation lapses; reported G&A was $302 million including $28 million special expenses.
Gross new unit openings totaled 871 with 386 net new units, led by KFC (566 gross openings), Pizza Hut (254), and Taco Bell (50).
Total restaurant level margins were 16.3%, down approximately 150 basis points year-over-year due to commodity cost laps and margin impact from newly acquired U.K. stores.
Yum! Brands delivered 4% system sales growth in Q2, driven by 3% unit growth and 2% same-store sales growth despite a tough consumer environment.
Adjusted EPS declined 6% to $0.66, including a $0.07 net tariff cost impact.
Adjusted gross profit decreased 4% to $257.6 million with a slight margin improvement to 57.8%, aided by product cost optimization and selective price increases but offset by higher tariffs.
Cash increased to $269.7 million; 745,000 shares repurchased for $23 million in Q2 under a $450 million authorization.
Coolers & Equipment sales decreased 3% to $200.6 million, with growth in hard coolers offset by declines in soft coolers.
Direct-to-consumer sales decreased 1% to $248.6 million, representing 56% of total sales, with strong Amazon and corporate sales offset by softer e-commerce demand.
Drinkware sales declined 4% to $236.4 million, impacted by a promotional market and supply chain constraints.
International sales grew 2% to $78.1 million, led by strong performance in Europe and expansion in Japan.
Operating income decreased 9% to $73.2 million (16.4% margin), and net income decreased 7% to $55.2 million.
Wholesale sales declined 7% to $197.3 million, driven by U.S. Drinkware weakness and cautious ordering internationally.
YETI reported Q2 2025 sales of $445.9 million, down 4% year-over-year, slightly below expectations due to cautious consumer and retail partner spending.
Contract sales were down less than 1% for the quarter, with first-time buyer sales up 6% year-over-year and owner sales down 4% due to lower VPGs.
Development profit more than doubled year-over-year due to a prior year sales reserve adjustment, though excluding that, development profit declined 11%.
Leverage ended at 3.9x with $800 million in liquidity; $1 billion of inventory on the balance sheet with $310 million of inventory commitments over the next few years.
Loan delinquencies declined 110 basis points year-over-year to the lowest levels in two years, with a sales reserve of 13% of contract sales in the quarter.
Management and exchange profit increased 3% to $98 million, and financing profit increased 7% to $53 million.
Marriott Vacations Worldwide delivered $203 million in adjusted EBITDA in Q2 2025, a 29% increase with margins improving 360 basis points compared to last year.
Total company rental profit declined 16% to $35 million, driven by increased unsold maintenance fees and marketing expenses, partially offset by higher ADRs.
Core sales declined 4.4% in Q2, slightly below operating plan but within guidance, with first half 2025 core sales down 3.4%, an improvement from prior periods.
Net interest expense increased by $4 million to $82 million versus prior year.
Net leverage ratio was 5.5x in Q2, slightly above prior year, with expected year-end leverage ratio of about 4.5x.
Net sales declined 4.8% due to unfavorable foreign exchange and business exits.
Newell Brands reported Q2 2025 normalized operating margin of 10.7%, up 10 basis points year-over-year, driven by an 80 basis point increase in normalized gross margin to 35.6%, the highest in 4 years.
Normalized earnings per share were $0.24, at the top end of guidance despite a higher-than-expected tax rate of 19.2%.
Normalized operating margin expanded by 10 basis points to 10.7%, with A&P levels as a percentage of sales comparable to last year but overheads increased as a percentage of sales.
Operating cash flow was a $271 million outflow versus a $64 million inflow in prior year, impacted by seasonal factors and proactive inventory purchases ahead of tariff increases.
Adjusted EBITDA declined to $15.3 million from $20.1 million, reflecting lower margins and higher noncash expenses related to self-insurance.
Bombshells segment revenues declined due to divestitures and same-store sales decline but returned to profitability with an operating income of $87,000 versus a loss of $8.9 million last year.
Free cash flow remained stable at $13.3 million, with a sequential increase in free cash flow margin to 19% of revenues.
GAAP EPS was $0.46 compared to a loss of $0.56 per share last year; non-GAAP EPS was $0.77 versus $1.35 year-over-year.
Net income attributable to common shareholders was $4.1 million, a significant improvement from a loss of $5.2 million in the prior year quarter.
Nightclub revenues were nearly flat with a slight decline in same-store sales offset by acquisitions; operating income increased to $17.8 million with a margin of 28.5%.
Total revenues for Q3 2025 were $71.1 million, down from $76.2 million year-over-year, primarily due to the sale and divestiture of underperforming Bombshells locations.
Dafinchi
