YUM! BRANDS INC (YUM) Fundamental Analysis & Valuation

NYSE:YUM • US9884981013

Current stock price

154.42 USD
-1.06 (-0.68%)
Last:

This YUM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. YUM Profitability Analysis

1.1 Basic Checks

  • In the past year YUM was profitable.
  • YUM had a positive operating cash flow in the past year.
  • In the past 5 years YUM has always been profitable.
  • 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

  • With an excellent Return On Assets value of 19.02%, YUM belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
  • YUM has a Return On Invested Capital of 30.29%. This is amongst the best in the industry. YUM outperforms 96.83% 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 10.68%.
Industry RankSector Rank
ROA 19.02%
ROE N/A
ROIC 30.29%
ROA(3y)22.25%
ROA(5y)23.16%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34%
ROIC(5y)35.54%
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 92.06% of the companies in the same industry.
  • YUM's Profit Margin has improved in the last couple of years.
  • YUM has a Operating Margin of 32.15%. This is amongst the best in the industry. YUM outperforms 97.62% of its industry peers.
  • In the last couple of years the Operating Margin of YUM has grown nicely.
  • The Gross Margin of YUM (46.17%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of YUM has remained more or less at the same level.
Industry RankSector Rank
OM 32.15%
PM (TTM) 18.98%
GM 46.17%
OM growth 3Y0.39%
OM growth 5Y2.04%
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. YUM Health Analysis

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.
  • Compared to 5 years ago, YUM has less shares outstanding
  • 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

  • An Altman-Z score of 2.61 indicates that YUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.61, YUM is doing good in the industry, outperforming 69.05% of the companies in the same industry.
  • YUM has a debt to FCF ratio of 7.26. This is a slightly negative value and a sign of low solvency as YUM would need 7.26 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 7.26, YUM is in the better half of the industry, outperforming 65.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.26
Altman-Z 2.61
ROIC/WACC3.88
WACC7.8%
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

  • YUM has a Current 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.
  • YUM's Current ratio of 1.35 is fine compared to the rest of the industry. YUM outperforms 65.08% of its industry peers.
  • A Quick Ratio of 1.35 indicates that YUM should not have too much problems paying its short term obligations.
  • YUM has a better Quick ratio (1.35) than 68.25% of its industry peers.
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

More info and screens

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

6

3. YUM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.40% 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 10.82% yearly.
  • YUM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.81%.
  • The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)10.4%
EPS 3Y10.37%
EPS 5Y10.82%
EPS Q2Q%7.45%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y6.28%
Revenue growth 5Y7.76%
Sales Q2Q%6.44%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.29% on average over the next years. This is quite good.
  • Based on estimates for the next years, YUM will show a quite strong growth in Revenue. The Revenue will grow by 8.31% on average per year.
EPS Next Y11.17%
EPS Next 2Y11.51%
EPS Next 3Y11.69%
EPS Next 5Y13.29%
Revenue Next Year11.73%
Revenue Next 2Y8.78%
Revenue Next 3Y7.54%
Revenue Next 5Y8.31%

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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

2

4. YUM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 25.52 indicates a quite expensive valuation of YUM.
  • Compared to the rest of the industry, the Price/Earnings ratio of YUM is on the same level as its industry peers.
  • YUM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.35, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 22.96, YUM is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of YUM is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.61, YUM is valued at the same level.
Industry RankSector Rank
PE 25.52
Fwd PE 22.96
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

  • Based on the Enterprise Value to EBITDA ratio, YUM is valued a bit more expensive than 68.25% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of YUM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 26.03
EV/EBITDA 19.03
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 an expensive valuation of the company.
  • YUM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)2.36
EPS Next 2Y11.51%
EPS Next 3Y11.69%

More info and screens

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

6

5. YUM Dividend Analysis

5.1 Amount

  • YUM has a Yearly Dividend Yield of 1.89%.
  • YUM's Dividend Yield is a higher than the industry average which is at 1.10.
  • Compared to an average S&P500 Dividend Yield of 1.89, 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 been paying a dividend for at least 10 years, so it has 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 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 50.61% of the earnings are spent on dividend by YUM. 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 2Y11.51%
EPS Next 3Y11.69%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

YUM Fundamentals: All Metrics, Ratios and Statistics

YUM! BRANDS INC

NYSE:YUM (4/1/2026, 11:09:16 AM)

154.42

-1.06 (-0.68%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners89.15%
Inst Owner Change1.74%
Ins Owners0.08%
Ins Owner Change2.16%
Market Cap42.69B
Revenue(TTM)8.21B
Net Income(TTM)1.56B
Analysts73.14
Price Target174.01 (12.69%)
Short Float %2.37%
Short Ratio3.24
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-Date02-20
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)0%
PT rev (3m)3.84%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)2.84%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.92%
Valuation
Industry RankSector Rank
PE 25.52
Fwd PE 22.96
P/S 5.2
P/FCF 26.03
P/OCF 21.23
P/B N/A
P/tB N/A
EV/EBITDA 19.03
EPS(TTM)6.05
EY3.92%
EPS(NY)6.73
Fwd EY4.36%
FCF(TTM)5.93
FCFY3.84%
OCF(TTM)7.27
OCFY4.71%
SpS29.71
BVpS-26.5
TBVpS-33.29
PEG (NY)2.29
PEG (5Y)2.36
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 19.02%
ROE N/A
ROCE 39.53%
ROIC 30.29%
ROICexc 33.89%
ROICexgc 49.44%
OM 32.15%
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%
ROIC(5y)35.54%
ROICexc(3y)38.35%
ROICexc(5y)39.77%
ROICexgc(3y)51.9%
ROICexgc(5y)53.65%
ROCE(3y)44.36%
ROCE(5y)46.37%
ROICexgc growth 3Y-5.75%
ROICexgc growth 5Y-0.31%
ROICexc growth 3Y-8.12%
ROICexc growth 5Y-1.49%
OM growth 3Y0.39%
OM growth 5Y2.04%
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 5.12
Cash Conversion 70.64%
Profit Quality 105.2%
Current Ratio 1.35
Quick Ratio 1.35
Altman-Z 2.61
F-Score5
WACC7.8%
ROIC/WACC3.88
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 Y11.17%
EPS Next 2Y11.51%
EPS Next 3Y11.69%
EPS Next 5Y13.29%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y6.28%
Revenue growth 5Y7.76%
Sales Q2Q%6.44%
Revenue Next Year11.73%
Revenue Next 2Y8.78%
Revenue Next 3Y7.54%
Revenue Next 5Y8.31%
EBIT growth 1Y7.84%
EBIT growth 3Y6.7%
EBIT growth 5Y9.96%
EBIT Next Year16.79%
EBIT Next 3Y10.9%
EBIT Next 5Y8.67%
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 Fundamental Analysis 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 2 / 10 to YUM! BRANDS INC (YUM). This can be considered as Overvalued.


What is the profitability of YUM stock?

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


What is the expected EPS growth for YUM! BRANDS INC (YUM) stock?

The Earnings per Share (EPS) of YUM! BRANDS INC (YUM) is expected to grow by 11.17% in the next year.


Can you provide the dividend sustainability for YUM stock?

The dividend rating of YUM! BRANDS INC (YUM) is 6 / 10 and the dividend payout ratio is 50.61%.