YUM

Yum! Brands, Inc.

Fundamental data last updated:November 14, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Restaurants

Exchange

NYSE

County of HQ

United States

Next Earnings Date

02/03/2027

Business Summary

Yum! Brands operates a franchise-based business model, generating cash through royalties and fees from its vast network of restaurants. Its competitive moat lies in strong brand recognition and a diversified portfolio of fast-food chains like KFC, Pizza Hut, and Taco Bell. This diversification helps mitigate risks associated with consumer preference shifts. By leveraging scale and global reach, Yum! Brands locks in customers through consistent quality and convenience.

 


VALUATION

P/E

12.77

Market Cap ($M USD)

$43.71B

Forward P/E

24.91

PEG

2.24

PRICE TO SALES

4.97

PRICE TO BOOK

-7.07

EV / EBITDA

11.57

5-Year Average P/E

Free Cash Flow Yield

3.70%

DCF Value

$243.21

Graham Number

N/A

Price to FCF

27.02

EV to FCF

32.88

Earnings Yield

7.90%

FCF Yield

3.70%

DIVIDEND

Yield

1.85%

Annual Payout

$2.96

Payout Ratio

23.61%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$12.66

Next Year EPS Growth Estimate

$6.43

Next Year Revenue Growth Estimate

$8.70B

Return on Equity (ROE)

-49.40%

FREE CASH FLOW

Operating Margin

49.51%

Debt-to-Equity

-1.88

Piotroski F-Score

5

Altman Z-Score

3.45

Return on Invested Capital (ROIC)

52.07%

Current Ratio

0.96

Quick Ratio

0.96

Net Debt to EBITDA

2.06

Interest Coverage

8.56

Gross Profit margin

42.05%

FCF PER SHARE

$5.95

REVENUE PER SHARE

$32.34

Gainseekers Quantitative Analysis

Summary

Yum! Brands presents a curious case of valuation disparity. Recent pricing indicated it traded significantly below its DCF value, suggesting potential undervaluation. However, the Forward P/E ratio nearly doubles the current P/E, hinting at expected earnings contraction. The Altman Z-score of 3.45 signals financial stability, yet the negative Return on Equity raises red flags about management’s capital allocation efficiency. The earnings yield of 7.9% is decent, but not compelling enough to overshadow these concerns.

AI Exposure / Tech Reliance

Operating within the restaurant industry, Yum! Brands is moderately positioned to adapt to AI and tech shifts. Automation in food preparation and customer service could enhance efficiency. However, the industry’s reliance on human touch and experience may limit full-scale tech integration.

The Bull Case

For the value-driven investor, Yum! Brands offers compelling reasons to buy. A robust ROIC of 52.07% showcases exceptional capital efficiency, translating into strong pricing power. The operating margin of 49.51% further underscores its ability to convert sales into profit. A Piotroski F-Score of 5 indicates moderate financial health, while a reasonable FCF yield suggests the company is generating cash effectively.

The Bear Case

Despite some strengths, Yum! Brands faces significant structural risks. The Price/Book ratio is negative, reflecting potential accounting anomalies or intangible asset issues. The Forward PEG ratio of 2.24 suggests overvaluation relative to growth prospects. Trading close to its 52-week high, the stock appears technically overextended. Additionally, a low current ratio of 0.96 raises liquidity concerns.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$171.13

Institutional Ownership %

1-Year Beta

0.53

Insider Buying % (6 Mo)

Distance to 52-Week High

6.21%

Distance to 52-Week Low

16.18%

EARNINGS SURPRISE %

3.31%

50-DAY SMA

$146.87

200-DAY SMA

$153.58

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.