Yum! Brands (YUM) AI Stock Analysis

• Market Cap: $42.54B
• Dividend Yield: 1.83%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.32
• Revenue Growth: 11.60%
• EPS Growth: -4.33%
• Country: US
• Employees: 40,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.58
• Shares Outstanding: 277,652,830
• 10 Day Avg. Volume: 2,128,181
• 30 Day Avg. Volume: 2,144,184
• PEG Ratio: -3.62
• Price to Book (P/B): -4.95
• Price to Sales (P/S): 5.01
• P/FCF Ratio: 26.42
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 6.83
• Enterprise Value/Gross Profit: 14.77
• Enterprise Value/Ebitda: 20.41
• 1Y Price Target: $164.33
• Price Target Upside: 7.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $157.00 ▲(2.47% Upside)

Yum! Brands' overall stock score reflects strong operational efficiency and cash flow management, bolstered by positive earnings call insights, particularly in KFC and Taco Bell segments. However, high leverage, valuation concerns, and challenges with Pizza Hut weigh on the score.

Positive Factors

Franchise Model Strength

The franchise model provides a steady income stream with low operating costs, enhancing financial stability and scalability.

Digital Sales Growth

Strong digital sales growth reflects successful digital transformation, expanding customer reach and improving operational efficiency.

KFC Expansion

Record unit growth for KFC indicates robust global expansion and market penetration, supporting long-term revenue growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health and investment capacity.

Pizza Hut Challenges

Operational challenges at Pizza Hut may hinder growth and profitability, necessitating strategic adjustments to improve performance.

Profit Margin Pressure

Declining profit margins suggest cost management challenges, which could affect long-term profitability and competitive positioning.

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 its franchise model, which allows the company to earn royalties and fees from franchisees who operate its restaurants. This model provides a steady stream of income with relatively low operating costs. Additionally, Yum! Brands earns revenue from company-owned restaurants, where it retains a larger share of sales. The company also benefits from strategic partnerships and collaborations, such as those with delivery services and food aggregators, enhancing its reach and sales potential. Product innovation and menu diversification, including vegetarian and health-conscious options, contribute to increased customer traffic and sales, further bolstering revenue. Overall, Yum! Brands' revenue streams are significantly supported by its ability to adapt to changing consumer trends and preferences while maintaining a strong global presence.

Yum! Brands Financial Statement Overview

Summary

Yum! Brands shows strong cash flow management and operational efficiency, but faces challenges with profitability margins and high leverage. The negative equity position and high debt levels pose financial risks, while stable revenue growth and strong cash flow provide a solid foundation for future improvements.

Income Statement

Yum! Brands has shown stable revenue with a TTM revenue of $7.91 billion, maintaining a consistent revenue growth rate over the years. However, the gross profit margin has slightly decreased from 49.4% in 2023 to 45.9% in TTM, indicating some pressure on cost management. The net profit margin has also declined from 22.6% in 2023 to 17.3% in TTM, reflecting reduced profitability. EBIT and EBITDA margins remain strong, showcasing operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of -1.60 in TTM, indicating significant leverage and potential financial risk. The negative stockholders' equity suggests financial instability, and the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is concerning, with equity being negative compared to total assets.

Cash Flow

Yum! Brands has demonstrated strong cash flow management with a significant free cash flow growth rate of 195.3% in TTM. The operating cash flow to net income ratio is healthy at 0.82, and the free cash flow to net income ratio is robust at 0.84, indicating efficient cash conversion and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.91B	7.55B	7.08B	6.84B	6.58B	5.65B
Gross Profit	3.66B	3.58B	3.50B	3.31B	3.17B	2.69B
EBITDA	2.65B	2.56B	2.48B	2.33B	2.38B	1.71B
Net Income	1.43B	1.49B	1.60B	1.32B	1.57B	904.00M
Balance Sheet
Total Assets	7.19B	6.73B	6.23B	5.85B	5.97B	5.85B
Cash, Cash Equivalents and Short-Term Investments	1.04B	707.00M	512.00M	587.00M	486.00M	730.00M
Total Debt	11.55B	12.29B	12.03B	12.66B	12.13B	11.64B
Total Liabilities	14.70B	14.38B	14.09B	14.72B	14.34B	13.74B
Stockholders Equity	-7.50B	-7.65B	-7.86B	-8.88B	-8.37B	-7.89B
Cash Flow
Free Cash Flow	1.57B	1.43B	1.32B	1.15B	1.48B	1.15B
Operating Cash Flow	1.91B	1.69B	1.60B	1.43B	1.71B	1.30B
Investing Cash Flow	-338.00M	-422.00M	-107.00M	-202.00M	-173.00M	-335.00M
Financing Cash Flow	-994.00M	-1.16B	-1.43B	-1.32B	-1.77B	-738.00M

Yum! Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 153.21 is above the 20-day moving average (MA) of 148.28, above the 50-day MA of 147.39, and above the 200-day MA of 147.24, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 62.50 is Neutral, neither overbought nor oversold. The STOCH value of 79.33 is Neutral, 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
DRI	71 Outperform	$20.94B	19.30	50.41%	3.23%	8.30%	7.69%
MCD	65 Neutral	$222.48B	26.64	―	2.28%	1.26%	2.87%
CMG	64 Neutral	$45.00B	29.99	44.96%	―	7.31%	5.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YUM	60 Neutral	$42.54B	29.83	―	1.83%	11.60%	-4.33%
SBUX	60 Neutral	$98.59B	53.23	―	2.81%	2.80%	-50.71%
DPZ	58 Neutral	$14.04B	24.29	―	1.60%	3.92%	4.98%

Yum! Brands Corporate Events

Yum! Brands Announces Strategic Review for Pizza Hut

On November 4, 2025, Yum! Brands announced a strategic review of options for the Pizza Hut brand, aiming to maximize long-term value. The company reported a 15% year-over-year increase in third-quarter EPS excluding special items, with Taco Bell and KFC showing significant sales and unit growth. Yum! Brands also plans to acquire 128 Taco Bell restaurants in the Southeast U.S. to enhance its equity-owned restaurant base. New leadership appointments were made, and the company highlighted its digital sales achievements, indicating a strong market position and future growth potential.

The most recent analyst rating on (YUM) stock is a Buy with a $163.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.

Yum! Brands Completes $1.5 Billion Refinancing Deal

On September 24, 2025, Taco Bell Funding, LLC, a subsidiary of Taco Bell Corp., completed a refinancing transaction by issuing $1.5 billion in senior secured notes. This move aims to repay existing debt and support corporate activities, potentially enhancing Taco Bell’s financial flexibility and operational capabilities. The notes are secured by Taco Bell’s U.S. franchise agreements and intellectual property, with specific covenants and restrictions in place to ensure financial stability.

The most recent analyst rating on (YUM) stock is a Hold with a $165.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.

Yum! Brands Announces $1.5 Billion Notes Sale

On September 9, 2025, YUM! Brands, Inc. announced a purchase agreement through its subsidiary, Taco Bell Funding, LLC, to issue and sell $1.5 billion in senior secured notes. The proceeds from these notes will be used to repay existing debt, cover transaction-related expenses, and potentially return capital to shareholders, with the sale expected to close on September 24, 2025.

The most recent analyst rating on (YUM) stock is a Hold with a $161.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.

Yum! Brands Announces Key Leadership Appointments

On September 8, 2025, Yum! Brands announced key leadership appointments to bolster its global growth and strategic focus. Ranjith Roy was appointed as Chief Financial Officer, effective October 1, 2025, succeeding Chris Turner, who will become the CEO. Sean Tresvant was named Chief Consumer Officer and CEO of Taco Bell, while Jim Dausch was promoted to Chief Digital and Technology Officer and President of Byte by Yum!. These changes aim to enhance Yum!’s enterprise capabilities and drive long-term value creation across its iconic brands.

The most recent analyst rating on (YUM) stock is a Hold with a $161.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.

Yum! Brands Announces Plan to Refinance Notes

On September 3, 2025, Yum! Brands announced its plan to refinance its Series 2016-1 Class A-2-III Notes, part of its existing securitization financing facility linked to Taco Bell’s U.S. franchise royalties. The company aims to issue $1.0 billion in new senior term notes to repay the existing notes and cover transaction-related expenses, while other notes will remain outstanding. This move is expected to optimize Yum! Brands’ financial structure, although the timing and completion of the refinancing remain uncertain.

The most recent analyst rating on (YUM) stock is a Hold with a $159.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.

Yum! Brands Announces Leadership Changes and Governance Update

On August 22, 2025, Yum! Brands announced significant changes in its leadership and governance structure. David Gibbs resigned as a director effective October 1, 2025, and will be succeeded by Christopher Turner, who will also assume the role of Chief Executive Officer on the same date. Turner, who has been with the company since 2019, is expected to lead Yum! Brands into its next growth phase. Additionally, the company’s Board of Directors amended its bylaws to enhance governance, including the elimination of the Vice Chair position and the introduction of a Chief Legal Officer role. These changes are aimed at strengthening the company’s leadership and governance as it continues to expand its global presence.

The most recent analyst rating on (YUM) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Yum! Brands stock, see the YUM Stock Forecast page.

Yum! Brands Reports Strong Q2 2025 Earnings

Yum! Brands, Inc., headquartered in Louisville, Kentucky, operates a global network of over 61,000 restaurants across more than 155 countries under its flagship brands KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill, specializing in chicken, Mexican-inspired food, pizza, and chargrilled burgers respectively.

Yum! Brands’ Earnings Call Highlights Digital Growth and Global Success

Yum! Brands’ recent earnings call conveyed a generally positive sentiment, highlighting strong digital sales growth and consistent performance from Taco Bell, alongside successful international operations, particularly with KFC International. Despite challenges in underperforming regions like the U.S. and Europe, the company remains optimistic about its growth trajectory and technological advancements.