YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - NYSE:YUM - US9884981013 - Common Stock
142.88 USD
-1.63 (-1.13%)
Overall YUM gets a fundamental rating of 5 out of 10. We evaluated YUM against 135 industry peers in the Hotels, Restaurants & Leisure industry. While YUM has a great profitability rating, there are some minor concerns on its financial health. YUM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.70%, YUM belongs to the top of the industry, outperforming 97.04% of the companies in the same industry.
YUM's Return On Invested Capital of 44.91% is amongst the best of the industry. YUM outperforms 97.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YUM is significantly above the industry average of 10.67%.
The 3 year average ROIC (40.31%) for YUM is below the current ROIC(44.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROIC | 44.91% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
1.3 Margins
YUM's Profit Margin of 18.11% is amongst the best of the industry. YUM outperforms 91.85% of its industry peers.
YUM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 32.07%, YUM belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
YUM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.48%, YUM is in line with its industry, outperforming 47.41% of the companies in the same industry.
YUM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, YUM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.44 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 2.44, YUM is doing good in the industry, outperforming 65.19% of the companies in the same industry.
YUM has a debt to FCF ratio of 7.42. This is a slightly negative value and a sign of low solvency as YUM would need 7.42 years to pay back of all of its debts.
The Debt to FCF ratio of YUM (7.42) is better than 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 2.44 |
ROIC/WACC5.83
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.82 indicates that YUM may have some problems paying its short term obligations.
YUM's Current ratio of 0.82 is in line compared to the rest of the industry. YUM outperforms 43.70% of its industry peers.
A Quick Ratio of 0.82 indicates that YUM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, YUM is in line with its industry, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
YUM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.00%, 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 9.07% on average per year.
Looking at the last year, YUM shows a quite strong growth in Revenue. The Revenue has grown by 11.30% in the last year.
The Revenue has been growing slightly by 6.17% on average over the past years.
EPS 1Y (TTM)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
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 11.84% on average per year.
The Revenue is expected to grow by 7.03% on average over the next years.
EPS Next Y10.47%
EPS Next 2Y10.52%
EPS Next 3Y11.06%
EPS Next 5Y11.84%
Revenue Next Year7.4%
Revenue Next 2Y6.92%
Revenue Next 3Y6.7%
Revenue Next 5Y7.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.98, which indicates a rather expensive current valuation of YUM.
YUM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.53. YUM is around the same levels.
A Price/Forward Earnings ratio of 21.35 indicates a rather expensive valuation of YUM.
The rest of the industry has a similar Price/Forward Earnings ratio as YUM.
YUM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than YUM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, YUM is valued a bit cheaper than the industry average as 65.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.83 | ||
| EV/EBITDA | 18.66 |
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 decent profitability rating of YUM may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)2.75
EPS Next 2Y10.52%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.99, YUM pays a bit more dividend than its industry peers.
YUM's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
5.3 Sustainability
YUM pays out 53.77% 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.
DP53.77%
EPS Next 2Y10.52%
EPS Next 3Y11.06%
NYSE:YUM (10/16/2025, 12:42:10 PM)
142.88
-1.63 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change-0.13%
Ins Owners0.07%
Ins Owner Change-5.8%
Market Cap39.65B
Analysts70.86
Price Target161.74 (13.2%)
Short Float %2.03%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend2.69
Dividend Growth(5Y)9.75%
DP53.77%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.22%
Min EPS beat(2)-2.34%
Max EPS beat(2)-0.09%
EPS beat(4)0
Avg EPS beat(4)-1.66%
Min EPS beat(4)-4.11%
Max EPS beat(4)-0.09%
EPS beat(8)2
Avg EPS beat(8)-1.33%
EPS beat(12)4
Avg EPS beat(12)-0.67%
EPS beat(16)5
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.8%
Revenue beat(12)2
Avg Revenue beat(12)-2.52%
Revenue beat(16)2
Avg Revenue beat(16)-2.25%
PT rev (1m)0%
PT rev (3m)-0.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.69%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 21.35 | ||
| P/S | 5.01 | ||
| P/FCF | 25.83 | ||
| P/OCF | 21.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.66 |
EPS(TTM)5.72
EY4%
EPS(NY)6.69
Fwd EY4.68%
FCF(TTM)5.53
FCFY3.87%
OCF(TTM)6.61
OCFY4.63%
SpS28.49
BVpS-27.67
TBVpS-32.16
PEG (NY)2.39
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROCE | 54.1% | ||
| ROIC | 44.91% | ||
| ROICexc | 52.49% | ||
| ROICexgc | 76.15% | ||
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% | ||
| 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%
ROICexcg growth 3Y0.45%
ROICexcg 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-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 159.57% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 107.19% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.44 |
F-Score6
WACC7.7%
ROIC/WACC5.83
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)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
EPS Next Y10.47%
EPS Next 2Y10.52%
EPS Next 3Y11.06%
EPS Next 5Y11.84%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
Revenue Next Year7.4%
Revenue Next 2Y6.92%
Revenue Next 3Y6.7%
Revenue Next 5Y7.03%
EBIT growth 1Y8.42%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.87%
EBIT Next 3Y9.55%
EBIT Next 5Y8.84%
FCF growth 1Y20.02%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y15.92%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%