YUM! BRANDS INC (YUM) Stock Fundamental Analysis

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

159.57 USD
+0.83 (+0.52%)
At close: Feb 4, 2026
159.57 USD
0 (0%)
After Hours: 2/4/2026, 7:57:50 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to YUM. YUM was compared to 132 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 is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year YUM was profitable.
  • YUM had a positive operating cash flow in the past year.
  • Each year in the past 5 years YUM has 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 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • YUM has a Return On Assets of 20.12%. This is amongst the best in the industry. YUM outperforms 96.21% of its industry peers.
  • YUM has a better Return On Invested Capital (36.61%) than 97.73% of its industry peers.
  • YUM had an Average Return On Invested Capital over the past 3 years of 40.31%. This is significantly above the industry average of 10.39%.
Industry RankSector Rank
ROA 20.12%
ROE N/A
ROIC 36.61%
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
YUM Yearly ROA, ROE, ROICYUM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 17.95%, YUM belongs to the top of the industry, outperforming 90.15% of the companies in the same industry.
  • In the last couple of years the Profit Margin of YUM has declined.
  • YUM's Operating Margin of 32.23% is amongst the best of the industry. YUM outperforms 97.73% of its industry peers.
  • YUM's Operating Margin has been stable in the last couple of years.
  • YUM has a Gross Margin (46.40%) which 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 32.23%
PM (TTM) 17.95%
GM 46.4%
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%
YUM Yearly Profit, Operating, Gross MarginsYUM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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6

2. Health

2.1 Basic Checks

  • YUM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 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 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 2.86 indicates that YUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • YUM has a Altman-Z score of 2.86. This is in the better half of the industry: YUM outperforms 75.00% of its industry peers.
  • YUM has a debt to FCF ratio of 7.38. This is a slightly negative value and a sign of low solvency as YUM would need 7.38 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 7.38, YUM is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.38
Altman-Z 2.86
ROIC/WACC4.64
WACC7.89%
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 0 5B -5B 10B

2.3 Liquidity

  • YUM has a Current Ratio of 1.69. This is a normal value and indicates that YUM is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of YUM (1.69) is better than 76.52% of its industry peers.
  • YUM has a Quick Ratio of 1.69. 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 Quick ratio of 1.69 is fine compared to the rest of the industry. YUM outperforms 78.79% of its industry peers.
Industry RankSector Rank
Current Ratio 1.69
Quick Ratio 1.69
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 500M 1B 1.5B 2B 2.5B

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6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 15.59% over the past year.
  • Measured over the past years, YUM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.07% on average per year.
  • The Revenue has grown by 11.60% in the past year. This is quite good.
  • Measured over the past years, YUM shows a small growth in Revenue. The Revenue has been growing by 6.17% on average per year.
EPS 1Y (TTM)15.59%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%15.33%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.24% 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 7.40% on average per year.
EPS Next Y12.29%
EPS Next 2Y10.84%
EPS Next 3Y11.04%
EPS Next 5Y11.24%
Revenue Next Year8.35%
Revenue Next 2Y9.04%
Revenue Next 3Y8.13%
Revenue Next 5Y7.4%

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 accelerating.
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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3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 26.91, the valuation of YUM can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of YUM indicates a somewhat cheap valuation: YUM is cheaper than 60.61% of the companies listed in the same industry.
  • YUM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.25.
  • A Price/Forward Earnings ratio of 23.70 indicates a rather expensive valuation of YUM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of YUM is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. YUM is around the same levels.
Industry RankSector Rank
PE 26.91
Fwd PE 23.7
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 the industry average as 67.42% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, YUM is valued a bit cheaper than 62.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.31
EV/EBITDA 19.55
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)2.97
EPS Next 2Y10.84%
EPS Next 3Y11.04%

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6

5. Dividend

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 1.25.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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 9.75%, which is quite nice.
  • 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)9.75%
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

  • 53.84% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP53.84%
EPS Next 2Y10.84%
EPS Next 3Y11.04%
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 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 (2/4/2026, 7:57:50 PM)

After market: 159.57 0 (0%)

159.57

+0.83 (+0.52%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-04
Earnings (Next)02-04
Inst Owners86%
Inst Owner Change-1.63%
Ins Owners0.07%
Ins Owner Change-0.06%
Market Cap44.30B
Revenue(TTM)8.06B
Net Income(TTM)1.45B
Analysts73.14
Price Target167.55 (5%)
Short Float %3.11%
Short Ratio4.13
Dividend
Industry RankSector Rank
Dividend Yield 1.89%
Yearly Dividend2.69
Dividend Growth(5Y)9.75%
DP53.84%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.46%
Min EPS beat(2)-2.34%
Max EPS beat(2)5.25%
EPS beat(4)1
Avg EPS beat(4)0.68%
Min EPS beat(4)-2.34%
Max EPS beat(4)5.25%
EPS beat(8)2
Avg EPS beat(8)-2.15%
EPS beat(12)5
Avg EPS beat(12)0.24%
EPS beat(16)5
Avg EPS beat(16)-1.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)2
Avg Revenue beat(12)-2.56%
Revenue beat(16)2
Avg Revenue beat(16)-2.28%
PT rev (1m)-0.02%
PT rev (3m)2.93%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 26.91
Fwd PE 23.7
P/S 5.5
P/FCF 28.31
P/OCF 23.23
P/B N/A
P/tB N/A
EV/EBITDA 19.55
EPS(TTM)5.93
EY3.72%
EPS(NY)6.73
Fwd EY4.22%
FCF(TTM)5.64
FCFY3.53%
OCF(TTM)6.87
OCFY4.3%
SpS29.03
BVpS-27.03
TBVpS-31.5
PEG (NY)2.19
PEG (5Y)2.97
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 20.12%
ROE N/A
ROCE 44.09%
ROIC 36.61%
ROICexc 44.5%
ROICexgc 59.82%
OM 32.23%
PM (TTM) 17.95%
GM 46.4%
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%
ROICexgc growth 3Y0.45%
ROICexgc 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-Score7
Asset Turnover1.12
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.38
Debt/EBITDA 4.12
Cap/Depr 176.29%
Cap/Sales 4.24%
Interest Coverage 5.02
Cash Conversion 68.3%
Profit Quality 108.16%
Current Ratio 1.69
Quick Ratio 1.69
Altman-Z 2.86
F-Score7
WACC7.89%
ROIC/WACC4.64
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)15.59%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%15.33%
EPS Next Y12.29%
EPS Next 2Y10.84%
EPS Next 3Y11.04%
EPS Next 5Y11.24%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%
Revenue Next Year8.35%
Revenue Next 2Y9.04%
Revenue Next 3Y8.13%
Revenue Next 5Y7.4%
EBIT growth 1Y10.74%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year13.3%
EBIT Next 3Y9.83%
EBIT Next 5Y8.84%
FCF growth 1Y19.74%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y18.67%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%

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 3 / 10 to YUM! BRANDS INC (YUM). This can be considered as Overvalued.


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

YUM! BRANDS INC (YUM) has a profitability rating of 7 / 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 26.91 and the Price/Book (PB) ratio is -5.9.


Can you provide the financial health for YUM stock?

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