YUM! BRANDS INC (YUM) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:YUM • US9884981013

162.93 USD
+1.84 (+1.14%)
At close: Feb 6, 2026
162.73 USD
-0.2 (-0.12%)
After Hours: 2/6/2026, 8:12:31 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, YUM scores 6 out of 10 in our fundamental rating. YUM was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. YUM has an excellent profitability rating, but there are some minor concerns on its financial health. YUM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year YUM was profitable.
  • YUM had a positive operating cash flow in the past year.
  • YUM had positive earnings in each of the past 5 years.
  • In the past 5 years YUM always reported a positive cash flow from operatings.
YUM Yearly Net Income VS EBIT VS OCF VS FCFYUM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 19.02%, YUM belongs to the top of the industry, outperforming 96.18% of the companies in the same industry.
  • YUM has a Return On Invested Capital of 31.01%. This is amongst the best in the industry. YUM outperforms 96.95% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for YUM is significantly above the industry average of 10.42%.
Industry RankSector Rank
ROA 19.02%
ROE N/A
ROIC 31.01%
ROA(3y)22.25%
ROA(5y)23.16%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.77%
ROIC(5y)36.36%
YUM Yearly ROA, ROE, ROICYUM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

1.3 Margins

  • With an excellent Profit Margin value of 18.98%, YUM belongs to the best of the industry, outperforming 90.84% of the companies in the same industry.
  • YUM's Profit Margin has improved in the last couple of years.
  • YUM has a better Operating Margin (32.14%) than 97.71% of its industry peers.
  • In the last couple of years the Operating Margin of YUM has grown nicely.
  • YUM has a Gross Margin of 46.17%. This is comparable to the rest of the industry: YUM outperforms 46.56% 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 RankSector Rank
OM 32.14%
PM (TTM) 18.98%
GM 46.17%
OM growth 3Y0.25%
OM growth 5Y1.95%
PM growth 3Y-0.67%
PM growth 5Y3.48%
GM growth 3Y-1.52%
GM growth 5Y-0.59%
YUM Yearly Profit, Operating, Gross MarginsYUM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), YUM is creating value.
  • The number of shares outstanding for YUM has been reduced compared to 1 year ago.
  • YUM has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, YUM has an improved debt to assets ratio.
YUM Yearly Shares OutstandingYUM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
YUM Yearly Total Debt VS Total AssetsYUM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • YUM has an Altman-Z score of 2.69. This is not the best score and indicates that YUM is in the grey zone with still only limited risk for bankruptcy at the moment.
  • YUM has a better Altman-Z score (2.69) than 72.52% of its industry peers.
  • The Debt to FCF ratio of YUM is 7.26, which is on the high side as it means it would take YUM, 7.26 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of YUM (7.26) is better than 70.99% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.26
Altman-Z 2.69
ROIC/WACC3.95
WACC7.85%
YUM Yearly LT Debt VS Equity VS FCFYUM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B 10B

2.3 Liquidity

  • A Current Ratio of 1.35 indicates that YUM should not have too much problems paying its short term obligations.
  • YUM's Current ratio of 1.35 is fine compared to the rest of the industry. YUM outperforms 66.41% of its industry peers.
  • YUM has a Quick Ratio of 1.35. 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 1.35, YUM is in the better half of the industry, outperforming 70.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.35
YUM Yearly Current Assets VS Current LiabilitesYUM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • YUM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.40%, which is quite good.
  • Measured over the past years, YUM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.82% on average per year.
  • The Revenue has grown by 8.80% in the past year. This is quite good.
  • YUM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.76% yearly.
EPS 1Y (TTM)10.4%
EPS 3Y10.37%
EPS 5Y10.82%
EPS Q2Q%7.45%
Revenue 1Y (TTM)8.8%
Revenue growth 3Y6.28%
Revenue growth 5Y7.76%
Sales Q2Q%6.44%

3.2 Future

  • YUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.21% yearly.
  • The Revenue is expected to grow by 6.90% on average over the next years.
EPS Next Y11.72%
EPS Next 2Y11.52%
EPS Next 3Y12.66%
EPS Next 5Y11.21%
Revenue Next Year9.84%
Revenue Next 2Y8.05%
Revenue Next 3Y7.43%
Revenue Next 5Y6.9%

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 stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
YUM Yearly Revenue VS EstimatesYUM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
YUM Yearly EPS VS EstimatesYUM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.93, which means the current valuation is very expensive for YUM.
  • Based on the Price/Earnings ratio, YUM is valued a bit cheaper than 61.07% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.93, YUM is valued at the same level.
  • The Price/Forward Earnings ratio is 24.11, which indicates a rather expensive current valuation of YUM.
  • YUM's Price/Forward Earnings is on the same level as the industry average.
  • YUM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.77.
Industry RankSector Rank
PE 26.93
Fwd PE 24.11
YUM Price Earnings VS Forward Price EarningsYUM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • YUM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. YUM is more expensive than 67.18% of the companies in the same industry.
  • YUM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. YUM is cheaper than 61.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.58
EV/EBITDA 19.83
YUM Per share dataYUM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates YUM does not grow enough to justify the current Price/Earnings ratio.
  • YUM has an outstanding profitability rating, which may justify a higher PE ratio.
  • YUM's earnings are expected to grow with 12.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)2.49
EPS Next 2Y11.52%
EPS Next 3Y12.66%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • YUM has a Yearly Dividend Yield of 1.89%.
  • Compared to an average industry Dividend Yield of 1.26, YUM pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, YUM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.89%

5.2 History

  • On average, the dividend of YUM grows each year by 8.51%, which is quite nice.
  • YUM has paid a dividend for at least 10 years, which is a reliable track record.
  • As YUM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.51%
Div Incr Years7
Div Non Decr Years7
YUM Yearly Dividends per shareYUM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

  • YUM pays out 50.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of YUM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.61%
EPS Next 2Y11.52%
EPS Next 3Y12.66%
YUM Yearly Income VS Free CF VS DividendYUM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
YUM Dividend Payout.YUM Dividend Payout, showing the Payout Ratio.YUM Dividend Payout.PayoutRetained Earnings

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YUM! BRANDS INC

NYSE:YUM (2/6/2026, 8:12:31 PM)

After market: 162.73 -0.2 (-0.12%)

162.93

+1.84 (+1.14%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners86%
Inst Owner Change-1.25%
Ins Owners0.07%
Ins Owner Change-1.32%
Market Cap45.24B
Revenue(TTM)8.21B
Net Income(TTM)1.56B
Analysts73.14
Price Target169.45 (4%)
Short Float %3.11%
Short Ratio4.13
Dividend
Industry RankSector Rank
Dividend Yield 1.89%
Yearly Dividend2.84
Dividend Growth(5Y)8.51%
DP50.61%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1%
Min EPS beat(2)-3.26%
Max EPS beat(2)5.25%
EPS beat(4)1
Avg EPS beat(4)-0.11%
Min EPS beat(4)-3.26%
Max EPS beat(4)5.25%
EPS beat(8)2
Avg EPS beat(8)-1.18%
EPS beat(12)4
Avg EPS beat(12)-0.28%
EPS beat(16)5
Avg EPS beat(16)-0.86%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)1.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)1.58%
Revenue beat(8)1
Avg Revenue beat(8)-2.56%
Revenue beat(12)2
Avg Revenue beat(12)-2.78%
Revenue beat(16)3
Avg Revenue beat(16)-2.16%
PT rev (1m)1.11%
PT rev (3m)4.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)3.9%
Valuation
Industry RankSector Rank
PE 26.93
Fwd PE 24.11
P/S 5.51
P/FCF 27.58
P/OCF 22.5
P/B N/A
P/tB N/A
EV/EBITDA 19.83
EPS(TTM)6.05
EY3.71%
EPS(NY)6.76
Fwd EY4.15%
FCF(TTM)5.91
FCFY3.63%
OCF(TTM)7.24
OCFY4.45%
SpS29.58
BVpS-26.38
TBVpS-33.15
PEG (NY)2.3
PEG (5Y)2.49
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 19.02%
ROE N/A
ROCE 39.52%
ROIC 31.01%
ROICexc 34.69%
ROICexgc 50.6%
OM 32.14%
PM (TTM) 18.98%
GM 46.17%
FCFM 19.97%
ROA(3y)22.25%
ROA(5y)23.16%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.77%
ROIC(5y)36.36%
ROICexc(3y)39.22%
ROICexc(5y)40.69%
ROICexgc(3y)53.07%
ROICexgc(5y)54.89%
ROCE(3y)44.31%
ROCE(5y)46.34%
ROICexgc growth 3Y-5.88%
ROICexgc growth 5Y-0.4%
ROICexc growth 3Y-8.24%
ROICexc growth 5Y-1.57%
OM growth 3Y0.25%
OM growth 5Y1.95%
PM growth 3Y-0.67%
PM growth 5Y3.48%
GM growth 3Y-1.52%
GM growth 5Y-0.59%
F-Score5
Asset Turnover1
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.26
Debt/EBITDA 4.17
Cap/Depr 180.1%
Cap/Sales 4.52%
Interest Coverage 250
Cash Conversion 70.66%
Profit Quality 105.2%
Current Ratio 1.35
Quick Ratio 1.35
Altman-Z 2.69
F-Score5
WACC7.85%
ROIC/WACC3.95
Cap/Depr(3y)171.08%
Cap/Depr(5y)168.91%
Cap/Sales(3y)3.98%
Cap/Sales(5y)3.9%
Profit Quality(3y)94.7%
Profit Quality(5y)92.89%
High Growth Momentum
Growth
EPS 1Y (TTM)10.4%
EPS 3Y10.37%
EPS 5Y10.82%
EPS Q2Q%7.45%
EPS Next Y11.72%
EPS Next 2Y11.52%
EPS Next 3Y12.66%
EPS Next 5Y11.21%
Revenue 1Y (TTM)8.8%
Revenue growth 3Y6.28%
Revenue growth 5Y7.76%
Sales Q2Q%6.44%
Revenue Next Year9.84%
Revenue Next 2Y8.05%
Revenue Next 3Y7.43%
Revenue Next 5Y6.9%
EBIT growth 1Y7.8%
EBIT growth 3Y6.55%
EBIT growth 5Y9.87%
EBIT Next Year16.59%
EBIT Next 3Y11.96%
EBIT Next 5Y8.7%
FCF growth 1Y14.53%
FCF growth 3Y12.62%
FCF growth 5Y7.45%
OCF growth 1Y19.06%
OCF growth 3Y12.11%
OCF growth 5Y9.03%

YUM! BRANDS INC / YUM FAQ

Can you provide the ChartMill fundamental rating for YUM! BRANDS INC?

ChartMill assigns a fundamental rating of 6 / 10 to YUM.


Can you provide the valuation status for YUM! BRANDS INC?

ChartMill assigns a valuation rating of 4 / 10 to YUM! BRANDS INC (YUM). This can be considered as Fairly Valued.


How profitable is YUM! BRANDS INC (YUM) stock?

YUM! BRANDS INC (YUM) has a profitability rating of 8 / 10.


What is the valuation of YUM! BRANDS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for YUM! BRANDS INC (YUM) is 26.93 and the Price/Book (PB) ratio is -6.18.


Can you provide the financial health for YUM stock?

The financial health rating of YUM! BRANDS INC (YUM) is 6 / 10.