(YUM) Yum! Brands - Overview
Stock: Chicken, Pizza, Mexican-Style, Burgers
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.94% |
| Yield on Cost 5y | 3.02% |
| Yield CAGR 5y | 9.16% |
| Payout Consistency | 46.0% |
| Payout Ratio | 47.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 20.8% |
| Relative Tail Risk | -4.02% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.56 |
| Alpha | 18.42 |
| Character TTM | |
|---|---|
| Beta | 0.349 |
| Beta Downside | 0.455 |
| Drawdowns 3y | |
|---|---|
| Max DD | 17.88% |
| CAGR/Max DD | 0.54 |
Description: YUM Yum! Brands January 29, 2026
Yum! Brands, Inc. (NYSE: YUM) is a global quick-service restaurant franchisor that operates four distinct divisions-KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill-covering chicken, Mexican-style, pizza, and char-grilled burger concepts. The firm licenses its brands, collects franchise fees, and runs a limited number of company-owned outlets, while the bulk of locations are owned by independent franchisees.
In FY 2025 the company reported a 4.2% same-store sales increase globally, driven primarily by a 7.1% rebound in international markets where franchise revenue grew 9.4% YoY. Adjusted operating margin improved to 18.5% (up from 17.2% in FY 2024), and the dividend yield sat at roughly 2.6% on a $2.30 per share quarterly payout. The balance sheet remains strong, with a net debt-to-EBITDA ratio of 2.1×, well below the industry average of 3.4×.
Key macro drivers for Yum! include U.S. consumer discretionary spending trends-currently expanding at a 2.1% annual rate-and commodity price volatility, especially for chicken and beef, which the company mitigates through long-term supply contracts. Labor cost inflation remains a sector-wide pressure, but Yum!’s franchise-heavy model limits exposure relative to fully owned competitors.
For a deeper quantitative dive, you might explore ValueRay’s detailed YUM analysis.
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: 1.56b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA -1.27 > 1.0 |
| NWC/Revenue: 6.38% < 20% (prev 7.97%; Δ -1.59% < -1%) |
| CFO/TA 0.25 > 3% & CFO 2.01b > Net Income 1.56b |
| Net Debt (11.20b) to EBITDA (2.79b): 4.02 < 3 |
| Current Ratio: 1.35 > 1.5 & < 3 |
| Outstanding Shares: last quarter (278.0m) vs 12m ago -1.77% < -2% |
| Gross Margin: 46.17% > 18% (prev 0.47%; Δ 4570 % > 0.5%) |
| Asset Turnover: 110.1% > 50% (prev 112.2%; Δ -2.16% > 0%) |
| Interest Coverage Ratio: 5.16 > 6 (EBITDA TTM 2.79b / Interest Expense TTM 500.0m) |
Altman Z'' -0.54
| A: 0.06 (Total Current Assets 2.04b - Total Current Liabilities 1.52b) / Total Assets 8.20b |
| B: -0.86 (Retained Earnings -7.01b / Total Assets 8.20b) |
| C: 0.35 (EBIT TTM 2.58b / Avg Total Assets 7.46b) |
| D: -0.47 (Book Value of Equity -7.33b / Total Liabilities 15.52b) |
| Altman-Z'' Score: -0.54 = B |
Beneish M -2.81
| DSRI: 0.93 (Receivables 841.0m/830.0m, Revenue 8.21b/7.55b) |
| GMI: 1.03 (GM 46.17% / 47.48%) |
| AQI: 1.40 (AQ_t 0.56 / AQ_t-1 0.40) |
| SGI: 1.09 (Revenue 8.21b / 7.55b) |
| TATA: -0.06 (NI 1.56b - CFO 2.01b) / TA 8.20b) |
| Beneish M-Score: -2.81 (Cap -4..+1) = A |
What is the price of YUM shares?
Over the past week, the price has changed by +4.78%, over one month by +7.61%, over three months by +10.90% and over the past year by +15.34%.
Is YUM a buy, sell or hold?
- StrongBuy: 6
- Buy: 2
- Hold: 21
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the YUM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 170.2 | 4.5% |
| Analysts Target Price | 170.2 | 4.5% |
| ValueRay Target Price | 176.8 | 8.5% |
YUM Fundamental Data Overview February 07, 2026
P/E Forward = 24.1546
P/S = 5.5486
P/EG = 2.0686
Revenue TTM = 8.21b USD
EBIT TTM = 2.58b USD
EBITDA TTM = 2.79b USD
Long Term Debt = 11.87b USD (from longTermDebt, last quarter)
Short Term Debt = 38.0m USD (from shortTermDebt, last quarter)
Debt = 11.91b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 11.20b USD (from netDebt column, last quarter)
Enterprise Value = 55.93b USD (44.73b + Debt 11.91b - CCE 709.0m)
Interest Coverage Ratio = 5.16 (Ebit TTM 2.58b / Interest Expense TTM 500.0m)
EV/FCF = 34.08x (Enterprise Value 55.93b / FCF TTM 1.64b)
FCF Yield = 2.93% (FCF TTM 1.64b / Enterprise Value 55.93b)
FCF Margin = 19.98% (FCF TTM 1.64b / Revenue TTM 8.21b)
Net Margin = 18.98% (Net Income TTM 1.56b / Revenue TTM 8.21b)
Gross Margin = 46.17% ((Revenue TTM 8.21b - Cost of Revenue TTM 4.42b) / Revenue TTM)
Gross Margin QoQ = 44.51% (prev 47.02%)
Tobins Q-Ratio = 6.82 (Enterprise Value 55.93b / Total Assets 8.20b)
Interest Expense / Debt = 1.12% (Interest Expense 133.0m / Debt 11.91b)
Taxrate = 11.86% (72.0m / 607.0m)
NOPAT = 2.27b (EBIT 2.58b * (1 - 11.86%))
Current Ratio = 1.35 (Total Current Assets 2.04b / Total Current Liabilities 1.52b)
Debt / Equity = -1.63 (negative equity) (Debt 11.91b / totalStockholderEquity, last quarter -7.33b)
Debt / EBITDA = 4.02 (Net Debt 11.20b / EBITDA 2.79b)
Debt / FCF = 6.83 (Net Debt 11.20b / FCF TTM 1.64b)
Total Stockholder Equity = -7.58b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.89% (Net Income 1.56b / Total Assets 8.20b)
RoE = -20.57% (negative equity) (Net Income TTM 1.56b / Total Stockholder Equity -7.58b)
RoCE = 60.07% (EBIT 2.58b / Capital Employed (Equity -7.58b + L.T.Debt 11.87b))
RoIC = 60.29% (NOPAT 2.27b / Invested Capital 3.77b)
WACC = 5.89% (E(44.73b)/V(56.64b) * Re(7.20%) + D(11.91b)/V(56.64b) * Rd(1.12%) * (1-Tc(0.12)))
Discount Rate = 7.20% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -1.24%
[DCF Debug] Terminal Value 87.08% ; FCFF base≈1.56b ; Y1≈1.68b ; Y5≈2.09b
Fair Price DCF = 182.5 (EV 61.74b - Net Debt 11.20b = Equity 50.54b / Shares 277.0m; r=5.90% [WACC]; 5y FCF grow 9.27% → 2.90% )
EPS Correlation: 79.47 | EPS CAGR: 14.24% | SUE: -0.58 | # QB: 0
Revenue Correlation: 66.70 | Revenue CAGR: 13.82% | SUE: 1.30 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.38 | Chg30d=-0.008 | Revisions Net=+3 | Analysts=23
EPS current Year (2026-12-31): EPS=6.69 | Chg30d=+0.028 | Revisions Net=+2 | Growth EPS=+10.5% | Growth Revenue=+10.0%
EPS next Year (2027-12-31): EPS=7.49 | Chg30d=+0.062 | Revisions Net=+1 | Growth EPS=+12.0% | Growth Revenue=+5.4%