YUM! BRANDS INC (YUM)
US9884981013 - Common Stock
Taking everything into account, YUM scores 5 out of 10 in our fundamental rating. YUM was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. YUM scores excellent on profitability, but there are some minor concerns on its financial health. YUM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
YUM had positive earnings in the past year.
YUM had a positive operating cash flow in the past year.
In the past 5 years YUM has always been profitable.
Each year in the past 5 years YUM had a positive operating cash flow.
1.2 Ratios
YUM's Return On Assets of 25.88% is amongst the best of the industry. YUM outperforms 98.50% of its industry peers.
YUM has a better Return On Invested Capital (38.31%) than 97.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YUM is significantly above the industry average of 10.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.88% | ||
| ROE | N/A | ||
| ROIC | 38.31% |
ROA(3y)24.9%
ROA(5y)22.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.71%
ROIC(5y)39.66%
1.3 Margins
YUM has a better Profit Margin (22.92%) than 95.49% of its industry peers.
In the last couple of years the Profit Margin of YUM has declined.
YUM's Operating Margin of 32.76% is amongst the best of the industry. YUM outperforms 96.24% of its industry peers.
In the last couple of years the Operating Margin of YUM has remained more or less at the same level.
YUM has a Gross Margin of 49.58%. This is comparable to the rest of the industry: YUM outperforms 50.38% of its industry peers.
In the last couple of years the Gross Margin of YUM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.76% | ||
| PM (TTM) | 22.92% | ||
| GM | 49.58% |
OM growth 3Y3.97%
OM growth 5Y1.1%
PM growth 3Y12.16%
PM growth 5Y-3.6%
GM growth 3Y1.29%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), YUM is creating value.
Compared to 1 year ago, YUM has more shares outstanding
YUM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, YUM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.41 indicates that YUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
YUM has a better Altman-Z score (2.41) than 74.44% of its industry peers.
YUM has a debt to FCF ratio of 8.32. This is a slightly negative value and a sign of low solvency as YUM would need 8.32 years to pay back of all of its debts.
YUM has a better Debt to FCF ratio (8.32) than 65.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 2.41 |
ROIC/WACC4.61
WACC8.32%
2.3 Liquidity
YUM has a Current Ratio of 1.49. This is a normal value and indicates that YUM is financially healthy and should not expect problems in meeting its short term obligations.
YUM's Current ratio of 1.49 is fine compared to the rest of the industry. YUM outperforms 72.18% of its industry peers.
YUM has a Quick Ratio of 1.49. This is a normal value and indicates that YUM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.49, YUM is in the better half of the industry, outperforming 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.63% over the past year.
YUM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.35% yearly.
Looking at the last year, YUM shows a small growth in Revenue. The Revenue has grown by 1.28% in the last year.
Measured over the past years, YUM shows a small growth in Revenue. The Revenue has been growing by 4.46% on average per year.
EPS 1Y (TTM)16.63%
EPS 3Y12.61%
EPS 5Y10.35%
EPS Q2Q%8.49%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y7.78%
Revenue growth 5Y4.46%
Sales Q2Q%-2.86%
3.2 Future
The Earnings Per Share is expected to grow by 12.71% on average over the next years. This is quite good.
Based on estimates for the next years, YUM will show a small growth in Revenue. The Revenue will grow by 6.93% on average per year.
EPS Next Y10.89%
EPS Next 2Y11.65%
EPS Next 3Y11.97%
EPS Next 5Y12.71%
Revenue Next Year7.76%
Revenue Next 2Y7.5%
Revenue Next 3Y7.34%
Revenue Next 5Y6.93%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.13 indicates a quite expensive valuation of YUM.
The rest of the industry has a similar Price/Earnings ratio as YUM.
The average S&P500 Price/Earnings ratio is at 28.05. YUM is around the same levels.
Based on the Price/Forward Earnings ratio of 21.32, the valuation of YUM can be described as rather expensive.
YUM's Price/Forward Earnings is on the same level as the industry average.
YUM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 21.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YUM indicates a slightly more expensive valuation: YUM is more expensive than 70.68% of the companies listed in the same industry.
YUM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.78 | ||
| EV/EBITDA | 19.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
YUM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)2.53
EPS Next 2Y11.65%
EPS Next 3Y11.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, YUM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, YUM pays a better dividend. On top of this YUM pays more dividend than 80.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, YUM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of YUM is nicely growing with an annual growth rate of 10.79%!
YUM has paid a dividend for at least 10 years, which is a reliable track record.
YUM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.79%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
YUM pays out 43.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of YUM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP43.33%
EPS Next 2Y11.65%
EPS Next 3Y11.97%
YUM! BRANDS INC
NYSE:YUM (5/31/2024, 7:15:20 PM)
After market: 137.43 0 (0%)137.43
+2.59 (+1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 21.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.4
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.88% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.76% | ||
| PM (TTM) | 22.92% | ||
| GM | 49.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.63%
EPS 3Y12.61%
EPS 5Y
EPS Q2Q%
EPS Next Y10.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.28%
Revenue growth 3Y7.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y