Yum! Brands (YUM) AI Stock Analysis

• Market Cap: $41.80B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.44
• Revenue Growth: 10.09%
• EPS Growth: -11.50%
• Country: US
• Employees: 40,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): 1.30
• Shares Outstanding: 277,964,500
• 10 Day Avg. Volume: 2,418,882
• 30 Day Avg. Volume: 1,946,341
• PEG Ratio: -2.19
• Price to Book (P/B): -4.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.91
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 11.88
• Enterprise Value/Ebitda: 4.50
• 1Y Price Target: $159.87
• Price Target Upside: 6.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 68 Neutral
• Price Target: $160.00 ▲(6.54%Upside)

Yum! Brands achieves a balanced score due to strong earnings and strategic initiatives, but high leverage and valuation concerns weigh on the overall assessment. The recent leadership change and positive earnings outlook contribute positively, while Pizza Hut's challenges present ongoing risks.

Positive Factors

Digital Sales Growth

Digital sales are a strong area for the company, with the digital mix reaching 42% of total sales, showing significant year-over-year growth.

Same-Store Sales Growth

Taco Bell's stronger than expected performance with a 9% same-store sales increase highlights its positive contribution to YUM's results.

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

Share Price Decline

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

Underperformance of Pizza Hut

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

Unit Growth Challenges

Unit growth is lagging, pressured by closures, impacting the overall expansion strategy.

Yum! Brands Business Overview & Revenue Model

Company Description

Yum! Brands, Inc. is one of the world's largest restaurant companies, headquartered in Louisville, Kentucky. The company operates a global portfolio of fast-food brands including KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. Yum! Brands specializes in providing quick-service restaurant experiences, offering a diverse range of menu items from fried chicken and pizza to Mexican-inspired meals and gourmet burgers, catering to a broad customer base across various markets.

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 strong revenue growth and operational efficiency, with a robust gross profit margin and healthy net profit margin. However, the company faces challenges with high leverage and negative stockholders' equity, which poses potential financial stability risks. Cash flow management is a strong point, providing a buffer against high debt levels.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.74B	7.55B	7.08B	6.84B	6.58B	5.65B
Gross Profit	4.05B	3.58B	3.50B	3.31B	3.17B	2.69B
EBITDA	2.94B	2.65B	2.48B	2.33B	2.38B	1.76B
Net Income	1.43B	1.49B	1.60B	1.32B	1.57B	904.00M
Balance Sheet
Total Assets	6.66B	6.73B	6.23B	5.85B	5.97B	5.85B
Cash, Cash Equivalents and Short-Term Investments	607.00M	707.00M	512.00M	393.00M	486.00M	730.00M
Total Debt	11.36B	12.29B	12.03B	12.66B	12.13B	11.64B
Total Liabilities	14.46B	14.38B	14.09B	14.72B	14.34B	13.74B
Stockholders Equity	-7.80B	-7.65B	-7.86B	-8.88B	-8.37B	-7.89B
Cash Flow
Free Cash Flow	1.45B	1.43B	1.32B	1.15B	1.48B	1.15B
Operating Cash Flow	1.73B	1.69B	1.60B	1.43B	1.71B	1.30B
Investing Cash Flow	-465.00M	-422.00M	-107.00M	-202.00M	-173.00M	-335.00M
Financing Cash Flow	-1.36B	-1.16B	-1.43B	-1.32B	-1.77B	-738.00M

Yum! Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 150.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YUM, the sentiment is Positive. The current price of 150.18 is above the 20-day moving average (MA) of 144.25, above the 50-day MA of 145.39, and above the 200-day MA of 140.18, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 93.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YUM.

Yum! Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMG	79 Outperform	$78.47B	49.88	45.57%	―	12.57%	21.42%
YUMC	77 Outperform	$17.05B	19.14	15.73%	2.10%	2.79%	19.36%
SBUX	73 Outperform	$107.87B	34.50	-47.07%	2.57%	-0.50%	-24.28%
MCD	71 Outperform	$212.72B	26.24	-216.57%	2.38%	-0.22%	-3.83%
YUM	68 Neutral	$41.80B	29.98	-19.43%	1.89%	10.09%	-11.50%
DPZ	63 Neutral	$15.67B	26.23	-14.74%	1.52%	4.28%	13.76%
Sector *	61 Neutral	AU$2.82B	25.97	5.01%	5.20%	2.63%	-29.95%

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.