YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
FRA:TGR - Deutsche Boerse Ag - US9884981013 - Common Stock - Currency: EUR
Taking everything into account, TGR scores 5 out of 10 in our fundamental rating. TGR was compared to 58 industry peers in the Hotels, Restaurants & Leisure industry. While TGR has a great profitability rating, there are some minor concerns on its financial health. TGR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TGR had positive earnings in the past year.
In the past year TGR had a positive cash flow from operations.
Each year in the past 5 years TGR has been profitable.
TGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 20.70%, TGR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of TGR (44.91%) is better than 98.28% of its industry peers.
TGR had an Average Return On Invested Capital over the past 3 years of 40.31%. This is significantly above the industry average of 10.30%.
The 3 year average ROIC (40.31%) for TGR is below the current ROIC(44.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROIC | 44.91% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
1.3 Margins
TGR has a Profit Margin of 18.11%. This is amongst the best in the industry. TGR outperforms 86.21% of its industry peers.
TGR's Profit Margin has declined in the last couple of years.
TGR has a Operating Margin of 32.07%. This is amongst the best in the industry. TGR outperforms 93.10% of its industry peers.
In the last couple of years the Operating Margin of TGR has remained more or less at the same level.
TGR has a Gross Margin (46.48%) which is in line with its industry peers.
TGR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% |
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TGR is creating value.
The number of shares outstanding for TGR has been reduced compared to 1 year ago.
TGR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TGR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.46 indicates that TGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TGR has a better Altman-Z score (2.46) than 68.97% of its industry peers.
The Debt to FCF ratio of TGR is 7.42, which is on the high side as it means it would take TGR, 7.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.42, TGR is in line with its industry, outperforming 56.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 2.46 |
ROIC/WACC4.93
WACC9.11%
2.3 Liquidity
TGR has a Current Ratio of 0.82. This is a bad value and indicates that TGR is not financially healthy enough and could expect problems in meeting its short term obligations.
TGR has a Current ratio (0.82) which is in line with its industry peers.
TGR has a Quick Ratio of 0.82. This is a bad value and indicates that TGR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.82, TGR is in line with its industry, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% over the past year.
TGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.07% yearly.
The Revenue has grown by 11.30% in the past year. This is quite good.
TGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.17% yearly.
EPS 1Y (TTM)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
3.2 Future
TGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.17% yearly.
The Revenue is expected to grow by 7.04% on average over the next years.
EPS Next Y11.14%
EPS Next 2Y11.27%
EPS Next 3Y11.39%
EPS Next 5Y12.17%
Revenue Next Year7.19%
Revenue Next 2Y6.76%
Revenue Next 3Y6.76%
Revenue Next 5Y7.04%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.46 indicates a quite expensive valuation of TGR.
TGR's Price/Earnings ratio is a bit cheaper when compared to the industry. TGR is cheaper than 67.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.87, TGR is valued at the same level.
TGR is valuated rather expensively with a Price/Forward Earnings ratio of 21.45.
Based on the Price/Forward Earnings ratio, TGR is valued a bit cheaper than 65.52% of the companies in the same industry.
TGR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
TGR's Enterprise Value to EBITDA is on the same level as the industry average.
TGR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.35 | ||
| EV/EBITDA | 18.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TGR does not grow enough to justify the current Price/Earnings ratio.
TGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)2.81
EPS Next 2Y11.27%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
TGR has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
TGR's Dividend Yield is a higher than the industry average which is at 2.85.
TGR's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of TGR grows each year by 9.75%, which is quite nice.
Dividend Growth(5Y)9.75%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
53.77% of the earnings are spent on dividend by TGR. This is a bit on the high side, but may be sustainable.
The dividend of TGR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.77%
EPS Next 2Y11.27%
EPS Next 3Y11.39%
FRA:TGR (8/14/2025, 7:00:00 PM)
124.5
+3.05 (+2.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.9%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap34.61B
Analysts70.86
Price Target140.68 (13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend2.31
Dividend Growth(5Y)9.75%
DP53.77%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.22%
Min EPS beat(2)-2.34%
Max EPS beat(2)-0.09%
EPS beat(4)0
Avg EPS beat(4)-1.66%
Min EPS beat(4)-4.11%
Max EPS beat(4)-0.09%
EPS beat(8)2
Avg EPS beat(8)-1.33%
EPS beat(12)4
Avg EPS beat(12)-0.67%
EPS beat(16)5
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.8%
Revenue beat(12)2
Avg Revenue beat(12)-2.52%
Revenue beat(16)2
Avg Revenue beat(16)-2.25%
PT rev (1m)-1.09%
PT rev (3m)-2.4%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 21.45 | ||
| P/S | 5.12 | ||
| P/FCF | 26.35 | ||
| P/OCF | 22.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.78 |
EPS(TTM)4.89
EY3.93%
EPS(NY)5.8
Fwd EY4.66%
FCF(TTM)4.72
FCFY3.79%
OCF(TTM)5.65
OCFY4.54%
SpS24.34
BVpS-23.64
TBVpS-27.47
PEG (NY)2.28
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROCE | 54.1% | ||
| ROIC | 44.91% | ||
| ROICexc | 52.49% | ||
| ROICexgc | 76.15% | ||
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% | ||
| FCFM | 19.41% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
ROICexc(3y)45.11%
ROICexc(5y)43.66%
ROICexgc(3y)59.72%
ROICexgc(5y)58.3%
ROCE(3y)48.55%
ROCE(5y)46.33%
ROICexcg growth 3Y0.45%
ROICexcg growth 5Y-3.03%
ROICexc growth 3Y0.78%
ROICexc growth 5Y-2.83%
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 159.57% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 107.19% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.46 |
F-Score6
WACC9.11%
ROIC/WACC4.93
Cap/Depr(3y)174.74%
Cap/Depr(5y)154.81%
Cap/Sales(3y)3.84%
Cap/Sales(5y)3.57%
Profit Quality(3y)88.51%
Profit Quality(5y)97.18%
High Growth Momentum
Growth
EPS 1Y (TTM)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
EPS Next Y11.14%
EPS Next 2Y11.27%
EPS Next 3Y11.39%
EPS Next 5Y12.17%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
Revenue Next Year7.19%
Revenue Next 2Y6.76%
Revenue Next 3Y6.76%
Revenue Next 5Y7.04%
EBIT growth 1Y8.42%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.67%
EBIT Next 3Y9.92%
EBIT Next 5Y9.2%
FCF growth 1Y20.02%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y15.92%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%