Quarterly guidance

Q4 Restaurant-level margins
In the range of 21.5% to 23.5%.
Q4 Ex-special G&A
In the range of $285 million to $305 million.
Q4 Net interest expense
Approximately $130 million to $140 million, excluding financing activities.

Annual guidance

Unit growth
Excluding Pizza Hut, expect to exceed the 5% long-term algorithm for the full year.

Outlook

Consumer demand
Gasoline prices are pressuring household budgets, making value architectures like Taco Bell's Lux value menu a critical advantage.
Cost pressures
Year-over-year inflation on input costs is expected to ease, supporting sequential margin improvement.
Unit development
2026 is expected to be a record year for new unit development in KFC, driven by record gross openings in KFC International.
Technology adoption
Voice AI is planned to expand to more than 1,500 Taco Bell restaurants by year-end, following deployment in over 900 locations.