Yum! Brands (YUM)
NYSE:YUM
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Yum! Brands
(NYSE:YUM)
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Rating:67Neutral
Price Target:
$173.00
▲(6.27% Upside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by strong profitability and cash generation, reinforced by a constructive earnings call with improved Taco Bell margin outlook and continued digital/unit momentum. The main constraints are elevated balance-sheet risk (high debt and negative equity), a not-cheap valuation, and mostly neutral technical momentum.
Positive Factors
Franchise-driven model
A predominantly franchise model gives Yum! durable, recurring revenue via royalties and fees with low capital intensity for the company. Franchisees bear build/operating costs while Yum! captures upside from system sales, supporting steady margins, predictable cash flows and scalable unit growth over years.
Negative Factors
Elevated leverage & negative equity
Substantial debt combined with persistent negative equity materially reduces balance-sheet flexibility and raises downside risk. In stress scenarios, high nominal leverage limits ability to pursue opportunities, increases refinancing sensitivity, and can magnify earnings volatility from interest or regional shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise-driven model
A predominantly franchise model gives Yum! durable, recurring revenue via royalties and fees with low capital intensity for the company. Franchisees bear build/operating costs while Yum! captures upside from system sales, supporting steady margins, predictable cash flows and scalable unit growth over years.
Read all positive factors
Yum! Brands (YUM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.09B
Dividend Yield1.84%
Average Volume (3M)1.53M
Price to Earnings (P/E)24.9
Beta (1Y)0.36
Revenue Growth9.65%
EPS Growth23.32%
CountryUS
Employees49,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)6.25
Shares Outstanding276,173,280
10 Day Avg. Volume1,290,684
30 Day Avg. Volume1,525,724
Financial Highlights & Ratios
PEG Ratio4.59
Price to Book (P/B)-5.74
Price to Sales (P/S)5.12
P/FCF Ratio25.66
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue6.45
Enterprise Value/Gross Profit14.12
Enterprise Value/Ebitda19.33
Forecast
1Y Price Target
$174.07Price Target Upside6.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)6.76
Revenue Forecast (FY)$9.15B
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 Gr...
How the Company Makes Money
Yum! Brands makes money primarily through a franchise-driven model. A large portion of its revenue is generated from franchise fees and ongoing royalties paid by franchisees, typically based on a percentage of restaurant sales, in exchange for the...
Yum! Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much each business unit contributes to total sales, indicating which segments are growing or declining and their impact on overall performance.
Shows how much each business unit contributes to total sales, indicating which segments are growing or declining and their impact on overall performance.
Data provided by:
The Fly
The FlyYum! Brands Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted broad company momentum: solid top-line growth, strong unit development, notable Taco Bell and KFC performance, accelerating digital mix (~63% digital) and promising innovation/AI deployments. Profitability excluding Pizza Hut grew strongly (core operating profit +10% ex-Pizza Hut) and management signaled improved margin outlooks and disciplined capital allocation (share buybacks, manageable capex). Offsetting risks include ongoing inflationary pressure (notably beef impacting The Habit), increased G&A and franchise investments, regional supply-chain impacts tied to the Middle East conflict, and a strategic review and investment drag at Pizza Hut. Overall, the positive operational and financial metrics substantially outweigh the challenges described, with management expressing confidence in execution and growth levers.Positive Updates
Solid Top-Line and Store Growth
Q1 system sales grew 6%, new units grew 5%, and global same-store sales were up 3%. The company opened 130 new stores in the quarter.
Negative Updates
Pizza Hut Strategic Review and Investment Costs
Pizza Hut is undergoing a strategic options review (on track to complete in 2026). Q1 results included Hut Forward investment expenses; Q2 core operating profit for Pizza Hut is anticipated to be approximately $70 million, and the brand's results continue to be treated separately in some metrics.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Top-Line and Store Growth
Q1 system sales grew 6%, new units grew 5%, and global same-store sales were up 3%. The company opened 130 new stores in the quarter.
Read all positive updates
Company Guidance
Yum! issued several specific forward-looking metrics: Taco Bell U.S. restaurant‑level margins are now expected to be 24.5%–25.5% for the year; full‑year ex‑special G&A growth (excluding Pizza Hut) is expected to be up mid‑single digits with Q2 ex‑special ex‑Pizza Hut G&A running high‑single‑digit YoY growth due to project timing; amortization of reacquired franchise rights is forecast to rise by ~$30 million; Habit will incur roughly $5 million of non‑cash closure expenses; Pizza Hut Q2 core operating profit is expected to be about $70 million; full‑year interest expense is guided to $510–$520 million (excluding new debt issuances); the company finished Q1 with ~3.8x net leverage while targeting a ~4.0x leverage framework and highlighted a cash generation capacity of >$2.5 billion annually (operating cash flow run‑rate ~ $1.8 billion); Q1 gross capex was $75 million and the company repurchased ~1.2 million shares for ~$185 million.Yum! Brands Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
32
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.48B | 8.21B | 7.55B | 7.08B | 6.84B | 6.58B |
| Gross Profit | 3.88B | 3.79B | 3.58B | 3.50B | 3.31B | 3.17B |
| EBITDA | 2.83B | 2.78B | 2.56B | 2.48B | 2.33B | 2.38B |
| Net Income | 1.74B | 1.56B | 1.49B | 1.60B | 1.32B | 1.57B |
Balance Sheet | ||||||
| Total Assets | 8.21B | 8.20B | 6.73B | 6.23B | 5.85B | 5.97B |
| Cash, Cash Equivalents and Short-Term Investments | 689.00M | 709.00M | 707.00M | 512.00M | 587.00M | 486.00M |
| Total Debt | 11.95B | 11.91B | 12.29B | 12.03B | 12.66B | 12.13B |
| Total Liabilities | 15.49B | 15.52B | 14.38B | 14.09B | 14.72B | 14.34B |
| Stockholders Equity | -7.28B | -7.33B | -7.65B | -7.86B | -8.88B | -8.37B |
Cash Flow | ||||||
| Free Cash Flow | 1.65B | 1.64B | 1.43B | 1.32B | 1.15B | 1.48B |
| Operating Cash Flow | 2.02B | 2.01B | 1.69B | 1.60B | 1.43B | 1.71B |
| Investing Cash Flow | -1.08B | -1.00B | -422.00M | -107.00M | -202.00M | -173.00M |
| Financing Cash Flow | -856.00M | -924.00M | -1.16B | -1.43B | -1.32B | -1.77B |
Yum! Brands Technical Analysis
Positive
162.79
Price Trends
160.08
Positive
155.99
Positive
150.58
Positive
Market Momentum
0.75
Negative
58.60
Neutral
82.58
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 162.79 is above the 20-day moving average (MA) of 158.40, above the 50-day MA of 160.08, and above the 200-day MA of 150.58, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YUM.
Yum! Brands Risk Analysis
Yum! Brands disclosed 29 risk factors in its most recent earnings report. Yum! Brands reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Yum! Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $22.41B | 20.24 | 50.71% | 3.06% | 8.51% | 6.66% | |
67 Neutral | $43.09B | 24.92 | -23.33% | 1.84% | 9.65% | 23.32% | |
65 Neutral | $42.00B | 34.31 | 48.45% | ― | 5.67% | -4.28% | |
65 Neutral | $201.95B | 25.22 | -336.89% | 2.31% | 3.72% | 4.85% | |
62 Neutral | $121.31B | 48.35 | -18.33% | 2.88% | 5.88% | -52.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $10.80B | 22.18 | -15.04% | 1.63% | 5.17% | -0.62% |
* Consumer Cyclical Sector Average
YUM
Yum! Brands
156.02
10.83
7.46%
CMG
Chipotle
32.74
-18.71
-36.37%
DRI
Darden Restaurants
195.70
2.61
1.35%
DPZ
Domino's Pizza
324.66
-144.22
-30.76%
MCD
McDonald's
284.10
-22.30
-7.28%
SBUX
Starbucks
106.44
26.46
33.08%
Yum! Brands Corporate Events
Executive/Board Changes
Yum! Brands Adds Kathleen Oberg to Board of Directors
Positive
Apr 1, 2026
On March 26, 2026, Yum! Brands, Inc. announced that its Board of Directors had appointed Kathleen K. Oberg as a director, with the appointment effective April 1, 2026, and she is expected to stand for election by shareholders at the company’...
Executive/Board Changes
Yum! Brands Announces Board Resignation Amid Routine Refresh
Neutral
Feb 12, 2026
On February 10, 2026, Yum! Brands Inc. announced that board member Keith Barr resigned from the Board of Directors, effective the same day. The company stated that Barr’s departure was not due to any disagreement over operations, policies, o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.