Yum Brands Inc (YUM)
Consumer Discretionary · Restaurants · US stock · S&P 500 component
$154.45
▲ +3.21 (2.12%)
Fair valueFair
$156 +1.2% to fair value
$78fair band $133–$190$235
Day's range
$150.25 – $154.64
52-week range
$134.26 – $170.14
Red flags⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity
About Yum Brands Inc
Yum Brands is a restaurant company whose brands include KFC and Taco Bell, alongside other quick-service chains. Most of its restaurants are run by independent franchisees, who operate them under the Yum brand names and pay the company royalties. The company sets menus and brand standards and supports marketing and supply, and its restaurants serve customers across many countries.
Revenue comes mostly from franchise royalties and fees calculated on franchisees' restaurant sales, together with income from the smaller number of company-operated restaurants. Revenue was $8.7 billion over the last twelve months, with growth of 6.3% a year across the last three years. The operating margin is 31.0%, and the business earns a profit of 33% on the capital invested in it. Net debt is 4.9 times EBITDA. It pays a dividend with a yield of 1.9%. On the site's X-Ray Score it receives 48 out of 100.
Price chart
52-wk range $134.26 – $170.14Volume 2,169,290Daily, split-adjusted
Vitals
Market cap$42.8B
52-week range$134.26 – $170.14
Volume (last day)2,169,290
P/E (TTM)19.5
EBIT / EV yield4.7%
Free-cash-flow yield3.9%
Dividend yield1.9%
Revenue (TTM)$8.7B
Net income (TTM)$2.2B
Operating margin31.0%
Return on capital33.2%
Debt incl. leases$15.1B
Cash & securities$674M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$156middle half of models $139 – $175
Fair
+1.2% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $154
Undervalued < $133Fair $133 – $190Overvalued > $190
P/E multiple
$162
P/S multiple
$147
EV/EBITDA multiple
$148
EV/EBIT multiple
$151
EV/revenue multiple
$140
10-year DCF, EBITDA exit
$177
5-year DCF, EBITDA exit
$177
10-year DCF, revenue exit
$175
5-year DCF, revenue exit
$175
10-year DCF, growth exit
$121
5-year DCF, growth exit
$112
Dividend discount, stable
$127
Dividend discount, multi-stage
$240
Earnings power value
$138
Growth the price implies
10.6%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Consumer Discretionary peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
39/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.7%
Free-cash-flow yield3.9%
Fair value vs price1.0×
Growth
Fair
55/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)6.3%
EPS growth (3y)6.7%
Growth consistency90%
Profitability
Fair
66/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital33.2%
Operating margin31.0%
Gross profitability68.5%
Financial health
Weak
27/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA4.9×
Interest coverNo interest cost
Dividends
Fair
54/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.9%
Dividends vs free cash flow49%
Dividend growth6.7%
Quarterly results: last 6 quarters
+11.8%
Mar '25
+9.6%
Jun '25
+8.4%
Sep '25
+6.5%
Dec '25
+15.2%
Mar '26
+12.2%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.2B, diluted EPS $3.08.
Compare with peers
CMG Chipotle Mexican Grill...64 DPZ Dominos Pizza Inc64 DRI Darden Restaurants Inc54 MCD Mcdonalds Corp53Other Restaurants companies by X-Ray Score.
SWOT analysis: Yum Brands Inc
Strengthsinside the company
- Return on invested capital is 33.2%, against a median of 30.6% for industry peers.
- Operating margin of 31.0% is well above the 14.7% median of industry peers, a sign of pricing power or lower costs.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Net debt is 4.9x EBITDA, above the 3x level that lenders usually watch.
Opportunitiesvaluation and setting
- Dividends use only 49% of free cash flow, which leaves room to raise them.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Our checks raised: Negative equity; Negative equity.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare YUM with peers and sector
Medians of 5 Restaurants peers and of 46 Consumer Discretionary stocks in our universe.
Largest peers (X-Ray Score): MCD 53, SBUX 31, CMG 64, DRI 54, DPZ 64.
| Metric | YUM | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 48 | 54 | 51 |
| Valuation | 39 | 55 | 49 |
| Growth | 55 | 57 | 50 |
| Profitability | 66 | 63 | 52 |
| Financial health | 27 | 38 | 50 |
| Dividends | 54 | 58 | 51 |
Sector leaders: highest X-Ray Score in Consumer Discretionary
YUM ranks #28 of 47 in Consumer Discretionary and #5 of 6 in Restaurants by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for YUM
Each factor is rated by where YUM stands among the 47 Consumer Discretionary stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 6 Good · 6 Average · 7 Bad of 19
Growth: 1 · 2 · 0
Profitability: 3 · 1 · 0
Financial strength: 1 · 0 · 3
Valuation: 0 · 2 · 2
Cash flow: 1 · 1 · 2
| Factor | YUM | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +6.3% | Average beats 46% | +6.5% | – | – |
| Revenue growth, last year | +8.8% | Good beats 73% | +4.9% | +6.7% | ▲ Better |
| EPS growth, 3 years a year | +6.7% | Average beats 54% | +4.0% | – | – |
| Profitability | |||||
| Gross margin | 68.1% | Good beats 82% | 42.5% | 73.8% | ≈ In line |
| Operating margin | 31.0% | Good beats 94% | 14.9% | 32.0% | ≈ In line |
| Net margin | 25.4% | Good beats 97% | 11.4% | 19.7% | ▲ Better |
| Return on invested capital | 33.2% | Average beats 65% | 24.6% | – | – |
| Financial strength | |||||
| Net debt / EBITDA | 4.9x | Bad beats 13% | 1.8x | 4.3x | ▼ Worse |
| Interest cover | 50.0x | Good beats 76% | 25.3x | 3.9x | ▲ Better |
| Current ratio | 0.59 | Bad beats 15% | 1.10 | 1.26 | ▼ Worse |
| Piotroski F-score | 5 / 9 | Bad beats 24% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 19.3x | Average beats 57% | 21.1x | 26.6x | ▲ Better |
| Price / sales | 4.9x | Bad beats 14% | 2.1x | 5.3x | ≈ In line |
| EV / EBITDA | 19.5x | Bad beats 26% | 15.0x | 19.4x | ≈ In line |
| Free cash flow yield | 3.9% | Average beats 38% | 4.3% | 3.5% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 19.3% | Good beats 77% | 10.8% | 19.0% | ≈ In line |
| Cash from operations / net income | 0.94 | Bad beats 15% | 1.37 | 1.08 | ▼ Worse |
| Free cash flow growth, 3 years a year | +12.6% | Average beats 53% | +12.1% | – | – |
| Accruals (lower is better) | +1.5% | Bad beats 6% | −5.3% | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 3 Good · ● 8 Average · ● 5 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 45/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $6.6B | $6.8B | $7.1B | $7.5B | $8.2B |
| Operating income | $2.1B | $2.2B | $2.3B | $2.4B | $2.6B |
| Net income | $1.6B | $1.3B | $1.6B | $1.5B | $1.6B |
| Operating cash flow | $1.7B | $1.4B | $1.6B | $1.7B | $2.0B |
| Operating margin | 32.5% | 32.0% | 32.8% | 31.8% | 31.3% |
| Free cash flow | $1.5B | $1.1B | $1.3B | $1.4B | $1.6B |
| Diluted EPS | $5.21 | $4.57 | $5.59 | $5.22 | $5.55 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 149.4 | Bullish |
| EMA 10 | 149.3 | Bullish |
| SMA 20 | 143.9 | Bullish |
| EMA 20 | 146.5 | Bullish |
| SMA 50 | 145.4 | Bullish |
| EMA 50 | 146.0 | Bullish |
| SMA 100 | 149.0 | Bullish |
| EMA 100 | 147.9 | Bullish |
| SMA 200 | 152.4 | Bullish |
| EMA 200 | 149.1 | Bullish |
Oscillators (daily)
| RSI (14) | 70.31 | Bearish |
| MACD (12, 26) | 2.55 | Bullish |
| Momentum (12) | 10.45 | Bullish |
| Stochastic %K (14) | 99.02 | Bearish |
| Williams %R (14) | -0.98 | Bearish |
| CCI (20) | 119.2 | Bearish |
Pivot points (classic, last session)
S3 147.2 | S2 148.7 | S1 151.6 | Pivot 153.1 | R1 156.0 | R2 157.5 | R3 160.4 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
2.96 USD
Yield on today's price
1.92%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.7500 | |
| 0.7500 | |
| 0.7500 | |
| 0.7100 | |
| 0.7100 | |
| 0.7100 | |
| 0.7100 | |
| 0.6700 | |
| 0.6700 | |
| 0.6700 | |
| 0.6700 | |
| 0.6050 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold YUM
| ETF | Share of the fund |
|---|---|
| JEPI JPMorgan Equity Premium Income | 1.38% |
| TCAF T. Rowe Price Capital Appreciation Equ... | 1.12% |
| XLY Consumer Discretionary Select Sector S... | 1.10% |
| CGMM Capital Group U.S. Small and Mid Cap | 1.09% |
| VOT Vanguard Mid-Cap Growth | 0.97% |
| USMV iShares MSCI USA Min Vol Factor | 0.90% |
| SPLV Invesco S&P 500 Low Volatility | 0.86% |
| FQAL Fidelity Quality Factor | 0.82% |
The eight funds with the largest weight in YUM among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
YUM stock splits
YUM has split its stock 2 times since 2002. The latest was a 2-for-1 split on 27 Jun 2007.
Full YUM stock split history →YUM SEC filings
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Entered a material agreement; Completed an acquisition or disposal
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement; Other events
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.