YUM! BRANDS INC (YUM) Fundamental Analysis & Valuation

NYSE:YUM • US9884981013

Current stock price

159.705 USD
-1.02 (-0.64%)
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.
  • In the past year YUM had a positive cash flow from operations.
  • 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 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • The Return On Assets of YUM (19.02%) is better than 96.83% of its industry peers.
  • With an excellent Return On Invested Capital value of 30.29%, YUM belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for YUM is significantly above the industry average of 10.55%.
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

  • YUM has a better Profit Margin (18.98%) than 92.06% of its industry peers.
  • 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.
  • YUM's Gross Margin of 46.17% is in line compared to the rest of the industry. YUM outperforms 46.03% 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 32.15%
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

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6

2. YUM Health Analysis

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.
  • YUM has less shares outstanding than it did 1 year ago.
  • 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

  • An Altman-Z score of 2.66 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 2.66. This is in the better half of the industry: YUM outperforms 68.25% 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.
  • With a decent Debt to FCF ratio value of 7.26, YUM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.26
Altman-Z 2.66
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

  • A Current Ratio of 1.35 indicates that YUM should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.35, YUM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • A Quick Ratio of 1.35 indicates that YUM should not have too much problems paying its short term obligations.
  • YUM's Quick ratio of 1.35 is fine compared to the rest of the industry. YUM outperforms 69.84% 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

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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.
  • 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 8.81% 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 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 Y11.26%
EPS Next 2Y11.55%
EPS Next 3Y11.72%
EPS Next 5Y13.29%
Revenue Next Year11.83%
Revenue Next 2Y8.79%
Revenue Next 3Y7.55%
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

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2

4. YUM Valuation Analysis

4.1 Price/Earnings Ratio

  • YUM is valuated quite expensively with a Price/Earnings ratio of 26.40.
  • YUM's Price/Earnings ratio is in line with the industry average.
  • YUM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
  • The Price/Forward Earnings ratio is 23.72, which indicates a rather expensive current valuation of YUM.
  • YUM's Price/Forward Earnings is on the same level as the industry average.
  • YUM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.4
Fwd PE 23.72
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

  • 68.25% 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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 26.89
EV/EBITDA 19.53
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)2.34
PEG (5Y)2.44
EPS Next 2Y11.55%
EPS Next 3Y11.72%

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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%.
  • Compared to an average industry Dividend Yield of 1.04, YUM pays a bit more dividend than its industry peers.
  • YUM's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.89%

5.2 History

  • The dividend of YUM is nicely growing with an annual growth rate of 8.51%!
  • 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 Years8
Div Non Decr Years8
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.
  • The dividend of YUM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.61%
EPS Next 2Y11.55%
EPS Next 3Y11.72%
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 (4/24/2026, 12:17:47 PM)

159.705

-1.02 (-0.64%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-29
Inst Owners89.21%
Inst Owner Change0.12%
Ins Owners0.08%
Ins Owner Change2.01%
Market Cap44.11B
Revenue(TTM)8.21B
Net Income(TTM)1.56B
Analysts73.14
Price Target173.92 (8.9%)
Short Float %2.6%
Short Ratio3.88
Dividend
Industry RankSector Rank
Dividend Yield 1.89%
Yearly Dividend2.84
Dividend Growth(5Y)8.51%
DP50.61%
Div Incr Years8
Div Non Decr Years8
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)-0.05%
PT rev (3m)3.8%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.79%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.96%
Valuation
Industry RankSector Rank
PE 26.4
Fwd PE 23.72
P/S 5.37
P/FCF 26.89
P/OCF 21.93
P/B N/A
P/tB N/A
EV/EBITDA 19.53
EPS(TTM)6.05
EY3.79%
EPS(NY)6.73
Fwd EY4.21%
FCF(TTM)5.94
FCFY3.72%
OCF(TTM)7.28
OCFY4.56%
SpS29.74
BVpS-26.52
TBVpS-33.32
PEG (NY)2.34
PEG (5Y)2.44
Graham Number0 (-100%)
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 2.66
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 Y11.26%
EPS Next 2Y11.55%
EPS Next 3Y11.72%
EPS Next 5Y13.29%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y6.28%
Revenue growth 5Y7.76%
Sales Q2Q%6.44%
Revenue Next Year11.83%
Revenue Next 2Y8.79%
Revenue Next 3Y7.55%
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 11.26% 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%.