(YUM) Yum! Brands - Overview
Sector: Consumer Cyclical | Industry: Restaurants | Exchange: NYSE (USA) | Market Cap: 41.900m USD | Total Return: 4.7% in 12m
Avg Turnover: 253M
EPS Trend: 81.0%
Qual. Beats: 0
Rev. Trend: 96.2%
Qual. Beats: 0
Warnings
Altman Z'' -1.72 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Yum! Brands, Inc. is a global quick-service restaurant operator and franchisor managing four primary segments: KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill. Headquartered in Louisville, Kentucky, the company oversees a diverse portfolio specializing in chicken, Mexican-style cuisine, pizza, and burgers across domestic and international markets.
The company utilizes a capital-light business model, generating a significant portion of its revenue through franchise fees and royalties rather than direct restaurant ownership. In the global restaurant sector, this model allows for rapid geographic scaling and reduces exposure to direct labor and food commodity inflation. Examining the companys historical valuation trends on ValueRay can provide further context on its long-term growth trajectory.
Originally incorporated as TRICON Global Restaurants in 1997, the firm rebranded to Yum! Brands in 2002. It operates both traditional standalone units and non-traditional locations, such as those found in airports and shopping centers, to maximize consumer touchpoints.
- Global unit growth acceleration drives royalty revenue and franchise fee expansion
- Digital sales penetration and loyalty program adoption improve operating margins
- Persistent food and labor inflation pressure franchisee profitability and royalty stability
- China market performance volatility impacts KFC and Pizza Hut international segment earnings
- Taco Bell domestic market share gains offset sluggish Pizza Hut same-store sales
| Net Income: 1.74b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA -1.71 > 1.0 |
| NWC/Revenue: -12.82% < 20% (prev 6.41%; Δ -19.23% < -1%) |
| CFO/TA 0.25 > 3% & CFO 2.02b > Net Income 1.74b |
| Net Debt (12.7b) to EBITDA (2.89b): 4.39 < 3 |
| Current Ratio: 0.65 > 1.5 & < 3 |
| Outstanding Shares: last quarter (279.0m) vs 12m ago -1.06% < -2% |
| Gross Margin: 45.67% > 18% (prev 0.47%; Δ 4.52k% > 0.5%) |
| Asset Turnover: 114.1% > 50% (prev 116.2%; Δ -2.08% > 0%) |
| Interest Coverage Ratio: 5.26 > 6 (EBITDA TTM 2.89b / Interest Expense TTM 508.0m) |
| A: -0.13 (Total Current Assets 2.03b - Total Current Liabilities 3.12b) / Total Assets 8.21b |
| B: -0.85 (Retained Earnings -6.97b / Total Assets 8.21b) |
| C: 0.36 (EBIT TTM 2.67b / Avg Total Assets 7.43b) |
| D: -0.47 (Book Value of Equity -7.28b / Total Liabilities 15.5b) |
| Altman-Z'' = -1.72 = D |
| DSRI: 0.99 (Receivables 828.0m/761.0m, Revenue 8.48b/7.74b) |
| GMI: 1.02 (GM 45.67% / 46.80%) |
| AQI: 1.37 (AQ_t 0.56 / AQ_t-1 0.41) |
| SGI: 1.10 (Revenue 8.48b / 7.74b) |
| TATA: -0.03 (NI 1.74b - CFO 2.02b) / TA 8.21b) |
| Beneish M = -2.76 (Cap -4..+1) = A |
As of May 31, 2026, the stock is trading at USD 147.95 with a total of 2,247,530 shares traded.
Over the past week, the price has changed by -3.66%,
over one month by -6.99%,
over three months by -11.59% and
over the past year by +4.70%.
Yum! Brands has received a consensus analysts rating of 3.48. Therefore, it is recommended to hold YUM.
- StrongBuy: 6
- Buy: 2
- Hold: 21
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 173.9 | 17.5% |
P/E Trailing = 24.5194
P/E Forward = 23.2558
P/S = 4.9375
P/B = 212.0838
P/EG = 1.8829
Revenue TTM = 8.48b USD
EBIT TTM = 2.67b USD
EBITDA TTM = 2.89b USD
Long Term Debt = 10.2b USD (from longTermDebt, last quarter)
Short Term Debt = 1.74b USD (from shortTermDebt, last quarter)
Debt = 13.4b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.43b
Net Debt = 12.7b USD (calculated: Debt 13.4b - CCE 689.0m)
Enterprise Value = 54.6b USD (41.9b + Debt 13.4b - CCE 689.0m)
Interest Coverage Ratio = 5.26 (Ebit TTM 2.67b / Interest Expense TTM 508.0m)
EV/FCF = 33.11x (Enterprise Value 54.6b / FCF TTM 1.65b)
FCF Yield = 3.02% (FCF TTM 1.65b / Enterprise Value 54.6b)
FCF Margin = 19.43% (FCF TTM 1.65b / Revenue TTM 8.48b)
Net Margin = 20.48% (Net Income TTM 1.74b / Revenue TTM 8.48b)
Gross Margin = 45.67% ((Revenue TTM 8.48b - Cost of Revenue TTM 4.61b) / Revenue TTM)
Gross Margin QoQ = 44.68% (prev 44.51%)
Tobins Q-Ratio = 6.65 (Enterprise Value 54.6b / Total Assets 8.21b)
Interest Expense / Debt = 3.80% (Interest Expense 508.0m / Debt 13.4b)
Taxrate = 16.28% (84.0m / 516.0m)
NOPAT = 2.24b (EBIT 2.67b * (1 - 16.28%))
Current Ratio = 0.65 (Total Current Assets 2.03b / Total Current Liabilities 3.12b)
Debt / Equity = -1.84 (negative equity) (Debt 13.4b / totalStockholderEquity, last quarter -7.28b)
Debt / EBITDA = 4.39 (Net Debt 12.7b / EBITDA 2.89b)
Debt / FCF = 7.70 (Net Debt 12.7b / FCF TTM 1.65b)
Total Stockholder Equity = -7.45b (last 4 quarters mean from totalStockholderEquity)
RoA = 23.38% (Net Income 1.74b / Total Assets 8.21b)
RoE = -364.2% (negative equity) (Net Income TTM 1.74b / Total Stockholder Equity -477.2m)
RoCE = 27.42% (EBIT 2.67b / Capital Employed (Equity -477.2m + L.T.Debt 10.2b))
RoIC = 36.38% (NOPAT 2.24b / Invested Capital 6.14b)
WACC = 5.64% (E(41.9b)/V(55.3b) * Re(6.42%) + D(13.4b)/V(55.3b) * Rd(3.80%) * (1-Tc(0.16)))
Discount Rate = 6.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -82.81 | Cagr: -0.94%
[DCF] Terminal Value 77.76% ; FCFF base≈1.57b ; Y1≈1.78b ; Y5≈2.54b
[DCF] Fair Price = 93.10 (EV 38.4b - Net Debt 12.7b = Equity 25.7b / Shares 275.6m; r=8.35% [WACC [floored]]; 5y FCF grow 13.65% → 2.50% )
EPS Correlation: 81.02 | EPS CAGR: 6.69% | SUE: 0.66 | # QB: 0
Revenue Correlation: 96.19 | Revenue CAGR: 7.69% | SUE: 0.28 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.57 | Chg30d=-0.91% | Revisions=-17% | Analysts=23
EPS next Quarter (2026-09-30): EPS=1.70 | Chg30d=-0.42% | Revisions=+22% | Analysts=24
EPS current Year (2026-12-31): EPS=6.76 | Chg30d=+1.34% | Revisions=+62% | GrowthEPS=+11.8% | GrowthRev=+11.9%
EPS next Year (2027-12-31): EPS=7.50 | Chg30d=+0.41% | Revisions=+30% | GrowthEPS=+10.8% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: +62%