Yum! Brands (YUM) AI Stock Analysis

• Market Cap: $40.54B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.43
• Revenue Growth: 10.09%
• EPS Growth: -11.50%
• Country: US
• Employees: 40,000
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Restaurants
• EPS (TTM): 1.30
• Shares Outstanding: 277,964,500
• 10 Day Avg. Volume: 1,630,793
• 30 Day Avg. Volume: 1,813,919
• PEG Ratio: -7.57
• Price to Book (P/B): -5.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.00
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 12.68
• Enterprise Value/Ebitda: 4.81
• 1Y Price Target: $163.27
• Price Target Upside: 11.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 67 Neutral
• Price Target: $158.00 ▲(8.35%Upside)

Yum! Brands demonstrates strong operational performance and digital growth, particularly in Taco Bell and KFC International, which are significant contributors to its success. However, financial leverage and challenges in Pizza Hut U.S. pose risks. The leadership change and strategic initiatives provide optimism for future growth.

Positive Factors

Financial Performance

YUM's capital-light business model and significant cash reserves support its ability to return capital to shareholders through dividends and share repurchases.

Strategic Growth Plans

Yum shared long-term plans to reach $3M sales volumes in 2030 from $2.2M in 2024, while roughly doubling the segment's ~$1B EBIT by 2030.

Technological Advancements

YUM's technological advancement with its internal SaaS division, Byte, shows potential for reducing costs and expanding services beyond its own brands.

Negative Factors

Brand Performance

Pizza Hut's performance was weaker than expected, which negatively impacted the overall earnings.

Competitive Challenges

The sales momentum at Taco Bell US likely waned due to tougher competition and increased expenses.

Market Performance

YUM shares have declined approximately 9% from their previous high, underperforming the broader market.

Yum! Brands Business Overview & Revenue Model

Company Description

YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division. The company operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. As of December 31, 2021, it had 26,934 KFC units; 18,381 Pizza Hut units; 7,791 Taco Bell units; and 318 The Habit Burger Grill units in approximately 157 countries and territories. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.

How the Company Makes Money

Yum! Brands generates revenue primarily through a combination of company-owned restaurant sales, franchise fees, and royalties. The company operates a significant portion of its restaurants through franchising, where franchisees pay an initial fee and ongoing royalties based on a percentage of their sales. This model allows Yum! Brands to expand its global presence with relatively low capital investment compared to owning all its outlets. In addition to royalties and franchise fees, the company benefits from sales at its company-operated restaurants. Strategic partnerships and marketing collaborations further enhance brand visibility and customer engagement, contributing to its revenue streams. The company also focuses on international markets for growth, leveraging its brands' adaptability to various cultural preferences and consumer trends.

Yum! Brands Financial Statement Overview

Summary

Yum! Brands shows robust revenue growth and operational efficiency, but faces significant risks due to high leverage and negative equity. Despite these challenges, strong cash flow management provides some stability.

Income Statement

Yum! Brands demonstrates strong revenue growth with a 9.4% increase in revenue in TTM compared to 2024. The gross profit margin is robust at 52.4%, and the net profit margin is healthy at 18.4%. However, net income has slightly declined when comparing TTM to the previous year, indicating some profitability pressures. The EBIT and EBITDA margins are strong, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity, which indicates high leverage. The debt-to-equity ratio is not calculable due to negative equity, which is a significant risk factor. The equity ratio is also negative, reflecting substantial liabilities compared to assets, which poses potential financial stability risks.

Cash Flow

Cash flow analysis reveals a slight growth in free cash flow by 1.3% TTM. The operating cash flow to net income ratio is 1.21, indicating strong cash conversion from earnings. The free cash flow to net income ratio is also favorable at 1.02, showing good cash flow management despite declining net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.55B	7.08B	6.84B	6.58B	5.65B
Gross Profit	3.58B	3.50B	3.31B	3.17B	2.69B
EBITDA	2.65B	2.48B	2.33B	2.38B	1.76B
Net Income	1.49B	1.60B	1.32B	1.57B	904.00M
Balance Sheet
Total Assets	6.73B	6.23B	5.85B	5.97B	5.85B
Cash, Cash Equivalents and Short-Term Investments	707.00M	512.00M	393.00M	486.00M	730.00M
Total Debt	12.29B	12.03B	12.66B	12.13B	11.64B
Total Liabilities	14.38B	14.09B	14.72B	14.34B	13.74B
Stockholders Equity	-7.65B	-7.86B	-8.88B	-8.37B	-7.89B
Cash Flow
Free Cash Flow	1.43B	1.32B	1.15B	1.48B	1.15B
Operating Cash Flow	1.69B	1.60B	1.43B	1.71B	1.30B
Investing Cash Flow	-422.00M	-107.00M	-202.00M	-173.00M	-335.00M
Financing Cash Flow	-1.16B	-1.43B	-1.32B	-1.77B	-738.00M

Yum! Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 145.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YUM, the sentiment is Negative. The current price of 145.83 is below the 20-day moving average (MA) of 148.55, above the 50-day MA of 145.83, and above the 200-day MA of 141.34, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YUM.

Yum! Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YUMC	80 Outperform	$18.19B	20.56	15.73%	1.64%	2.79%	19.36%
DPZ	74 Outperform	$16.23B	27.75	-14.74%	1.36%	3.65%	5.71%
SBUX	73 Outperform	$109.00B	34.87	-47.07%	2.56%	-0.50%	-24.28%
MCD	69 Neutral	$213.17B	26.30	-216.57%	2.37%	-0.22%	-3.83%
YUM	67 Neutral	$40.54B	29.47	-19.43%	1.89%	10.09%	-11.50%
Sector *	64 Neutral	£1.74B	10.45	6.12%	255.82%	0.55%	-33.64%
CMG	63 Neutral	$71.11B	46.78	42.59%	―	8.57%	10.72%

Yum! Brands Corporate Events

Yum! Brands Appoints Christopher Turner as CEO

On June 13, 2025, Yum! Brands announced the appointment of Christopher Turner as the new Chief Executive Officer, effective October 1, 2025. Turner, who has been with the company since 2019, will succeed David Gibbs, who will transition to a non-executive advisory role. Turner has played a significant role in Yum! Brands’ digital transformation and growth strategies, and his leadership is expected to further accelerate the company’s momentum. The transition marks a new chapter for Yum! Brands, as it continues to focus on innovation and expanding its global presence.

The most recent analyst rating on (YUM) stock is a Hold with a $144.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.

Yum! Brands Shareholders Approve 2025 Incentive Plan

On May 15, 2025, Yum! Brands, Inc. held its annual meeting of shareholders where several key proposals were voted on. The shareholders approved the 2025 Long Term Incentive Plan, the election of directors, and the appointment of KPMG LLP as the independent auditor for 2025. However, shareholder proposals on the use of antimicrobials in food-producing animals, faith-based employee resource groups, and workplace safety policies were not approved. These decisions reflect the company’s strategic focus and governance priorities, potentially impacting its operational policies and stakeholder engagement.

The most recent analyst rating on (YUM) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.