YUM! BRANDS INC (YUM) Fundamental Analysis & Valuation

NYSE:YUM • US9884981013

157.955 USD
-1.03 (-0.65%)
Last: Mar 5, 2026, 09:46 AM
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This YUM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall YUM gets a fundamental rating of 6 out of 10. We evaluated YUM against 125 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

8

1. YUM Profitability Analysis

1.1 Basic Checks

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

  • YUM has a better Return On Assets (19.02%) than 96.80% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 31.01%, YUM belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for YUM is significantly above the industry average of 10.78%.
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

  • YUM's Profit Margin of 18.98% is amongst the best of the industry. YUM outperforms 92.80% of its industry peers.
  • YUM's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 32.14%, YUM belongs to the best of the industry, outperforming 97.60% of the companies in the same industry.
  • 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 45.60% 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. YUM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so YUM is creating value.
  • YUM has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for YUM has been reduced compared to 5 years ago.
  • The debt/assets ratio for YUM has been reduced compared to a year ago.
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 2.65. 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 Altman-Z score of 2.65. This is in the better half of the industry: YUM outperforms 71.20% 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.
  • YUM's Debt to FCF ratio of 7.26 is fine compared to the rest of the industry. YUM outperforms 67.20% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.26
Altman-Z 2.65
ROIC/WACC4.03
WACC7.7%
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 has a better Current ratio (1.35) than 64.80% 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 68.80% 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

6

3. YUM Growth Analysis

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.
  • YUM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.82% yearly.
  • 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

  • Based on estimates for the next years, YUM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.29% on average per year.
  • 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 Y11.72%
EPS Next 2Y11.52%
EPS Next 3Y12.66%
EPS Next 5Y13.29%
Revenue Next Year11.33%
Revenue Next 2Y8.64%
Revenue Next 3Y7.54%
Revenue Next 5Y8.31%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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. YUM Valuation Analysis

4.1 Price/Earnings Ratio

  • YUM is valuated quite expensively with a Price/Earnings ratio of 26.11.
  • 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 27.03, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 23.37, the valuation of YUM can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.11
Fwd PE 23.37
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

  • 67.20% of the companies in the same industry are cheaper than YUM, based on the Enterprise Value to EBITDA ratio.
  • YUM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.74
EV/EBITDA 19.45
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.
  • The excellent profitability rating of YUM 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)2.23
PEG (5Y)2.41
EPS Next 2Y11.52%
EPS Next 3Y12.66%

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

6

5. YUM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.89%, YUM has a reasonable but not impressive dividend return.
  • YUM's Dividend Yield is a higher than the industry average which is at 1.10.
  • YUM's Dividend Yield is comparable with the S&P500 average which is at 1.82.
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

  • YUM pays out 50.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • YUM's earnings are growing more than its dividend. This makes the dividend growth 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 Fundamentals: All Metrics, Ratios and Statistics

YUM! BRANDS INC

NYSE:YUM (3/5/2026, 9:46:02 AM)

157.955

-1.03 (-0.65%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners86%
Inst Owner Change1.73%
Ins Owners0.07%
Ins Owner Change2.18%
Market Cap43.86B
Revenue(TTM)8.21B
Net Income(TTM)1.56B
Analysts73.14
Price Target174.01 (10.16%)
Short Float %2.07%
Short Ratio2.84
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)3.86%
PT rev (3m)4.4%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)1.64%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)5.26%
Valuation
Industry RankSector Rank
PE 26.11
Fwd PE 23.37
P/S 5.34
P/FCF 26.74
P/OCF 21.81
P/B N/A
P/tB N/A
EV/EBITDA 19.45
EPS(TTM)6.05
EY3.83%
EPS(NY)6.76
Fwd EY4.28%
FCF(TTM)5.91
FCFY3.74%
OCF(TTM)7.24
OCFY4.59%
SpS29.58
BVpS-26.38
TBVpS-33.15
PEG (NY)2.23
PEG (5Y)2.41
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 2.65
F-Score5
WACC7.7%
ROIC/WACC4.03
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 5Y13.29%
Revenue 1Y (TTM)8.8%
Revenue growth 3Y6.28%
Revenue growth 5Y7.76%
Sales Q2Q%6.44%
Revenue Next Year11.33%
Revenue Next 2Y8.64%
Revenue Next 3Y7.54%
Revenue Next 5Y8.31%
EBIT growth 1Y7.8%
EBIT growth 3Y6.55%
EBIT growth 5Y9.87%
EBIT Next Year16.86%
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 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 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 26.11 and the Price/Book (PB) ratio is -5.99.


Can you provide the financial health for YUM stock?

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