YUM! BRANDS INC (YUM) Fundamental Analysis & Valuation

NYSE:YUM • US9884981013

Current stock price

156.09 USD
+2.39 (+1.55%)
At close:
156.09 USD
0 (0%)
After Hours:

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.
  • In the past year YUM had a positive cash flow from operations.
  • In the past 5 years YUM has always been profitable.
  • YUM had a positive operating cash flow in each of the past 5 years.
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 better Return On Invested Capital (30.29%) than 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

  • Looking at the Profit Margin, with a value of 18.98%, YUM belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
  • In the last couple of years the Profit Margin of YUM has grown nicely.
  • YUM has a better Operating Margin (32.15%) than 97.62% of its industry peers.
  • In the last couple of years the Operating Margin of YUM has grown nicely.
  • With a Gross Margin value of 46.17%, YUM perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
  • YUM's Gross Margin has been stable in the last couple of years.
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.
  • Compared to 1 year ago, YUM has less shares outstanding
  • YUM has less shares outstanding than it did 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 2.59. 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.
  • The Altman-Z score of YUM (2.59) is better than 69.05% 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 65.87% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.26
Altman-Z 2.59
ROIC/WACC3.89
WACC7.79%
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 65.08% 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.
  • YUM's Quick ratio of 1.35 is fine compared to the rest of the industry. YUM outperforms 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%.
  • Measured over the past years, YUM shows a small growth in Revenue. The Revenue has been growing by 7.76% on average per year.
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

  • YUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.29% yearly.
  • The Revenue is expected to grow by 8.31% on average over the next years. This is quite good.
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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

2

4. YUM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.80, which means the current valuation is very expensive for YUM.
  • YUM's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.51. YUM is around the same levels.
  • YUM is valuated rather expensively with a Price/Forward Earnings ratio of 23.21.
  • YUM's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.76. YUM is around the same levels.
Industry RankSector Rank
PE 25.8
Fwd PE 23.21
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YUM indicates a slightly more expensive valuation: YUM is more expensive than 68.25% of the companies listed 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 26.31
EV/EBITDA 18.86
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.
  • The excellent profitability rating of YUM may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)2.38
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%. Purely for dividend investing, there may be better candidates out there.
  • 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 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)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 (4/2/2026, 4:15:09 PM)

After market: 156.09 0 (0%)

156.09

+2.39 (+1.55%)

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 Cap43.15B
Revenue(TTM)8.21B
Net Income(TTM)1.56B
Analysts73.14
Price Target174.01 (11.48%)
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 25.8
Fwd PE 23.21
P/S 5.25
P/FCF 26.31
P/OCF 21.46
P/B N/A
P/tB N/A
EV/EBITDA 18.86
EPS(TTM)6.05
EY3.88%
EPS(NY)6.73
Fwd EY4.31%
FCF(TTM)5.93
FCFY3.8%
OCF(TTM)7.27
OCFY4.66%
SpS29.71
BVpS-26.5
TBVpS-33.29
PEG (NY)2.31
PEG (5Y)2.38
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 2.59
F-Score5
WACC7.79%
ROIC/WACC3.89
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%.