A Business at a Glance
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YUM BRANDS INC
YUM
$41.8B
Mkt Cap
$148.92
+1.05%
YUM BRANDS INC (YUM) has a current P/E ratio of 26.8, compared to its historical median P/E of 23.4. The stock is currently considered Fair based on its historical valuation range.
YUM BRANDS INC (YUM) has a 5-year average return on invested capital (ROIC) of 57.1%. This indicates strong capital allocation and a potential competitive advantage.
YUM BRANDS INC (YUM) has a market capitalization of $41.1B. It is classified as a large-cap stock.
Yes, YUM BRANDS INC (YUM) pays a dividend with a trailing twelve-month yield of 1.94%. The company also returns capital through share buybacks, with a buyback yield of 1.24%.
Based on historical P/E analysis, YUM BRANDS INC (YUM) appears fair. The current P/E of 26.8 is 15% above its historical median of 23.4. The estimated fair value CAGR (P/E method) is 5.9%.
YUM BRANDS INC (YUM) operates in the Retail-Eating Places industry, within the Consumer Cyclical sector.
YUM BRANDS INC (YUM) reported annual revenue of $8.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Yum! Brands operates a portfolio of iconic quick-service restaurant brands—KFC, Taco Bell, and Pizza Hut—primarily through a franchise model that generates revenue from franchise fees, royalties, and company-operated restaurant sales. KFC contributes approximately 51–52% of divisional operating profit and operates in over 150 countries, while Taco Bell represents 38% of divisional operating profit with significant growth in both U.S. and international markets, and Pizza Hut rounds out the portfolio. The company's unit economics are characterized by strong franchise paybacks and asset-light operations, with Taco Bell U.S. restaurant-level margins in the 24–25% range and KFC delivering record unit openings driven by improved economics. Distribution is primarily through franchise partners globally, with selective company-operated stores in key markets such as the U.K. and Australia; the company has invested in acquiring certain Taco Bell U.S. franchise stores to capture incremental EBITDA and optimize unit economics. Competitive differentiation stems from owned data and strategic technology components through Byte by Yum!, digital capabilities that drive transaction growth and customer engagement, and the brands' cultural relevance and innovation capacity—exemplified by Taco Bell's Live Más Live event and KFC's global marketing initiatives. The customer base spans diverse demographics and geographies, with particular strength in North America and emerging international markets, supported by clear development runways targeting at least 10,000 KFC units in North America and 3,000 internationally, alongside Taco Bell's 2030 ambition of $3 million average unit volumes.
【Raise the Bar execution underway】 Management is in the early innings of executing three core priorities—battling for the future consumer, accelerating restaurant unit economics, and reaching the full potential of Byte—which are expected to drive the next chapter of global growth. The company remains confident in meeting or exceeding its long-term growth algorithm excluding Pizza Hut, with particular momentum in Taco Bell driven by sustainable market share gains and digital penetration, while KFC is benefiting from innovation in crispy chicken and new occasions alongside record unit development. Unit development pipelines remain robust with high confidence in continued growth across all markets, though the Middle East conflict has created short-term delays in select markets such as the UAE and Turkey. The company expects to generate over $2.5 billion in annual cash from profit growth and leverage management, which will be deployed toward strategic investments, shareholder returns, and debt management while maintaining a 4x net leverage ratio.
| Metric | Target | Period |
|---|---|---|
| Taco Bell U.S. restaurant-level margins | 24.5% to 25.5% | FY2026 |
| Interest expense | $510 million to $520 million | FY2026 |
| Habit non-cash closure expenses | approximately $5 million | FY2026 |
Taco Bell U.S. restaurant-level margins (FY2026): “We now expect Taco Bell U.S. restaurant-level margins to be between 24.5% and 25.5%, reflecting better top-line momentum and higher margins than originally planned from the acquired Taco Bell stores.”
Interest expense (FY2026): “For this year, we expect our full year interest expense to fall in the range of $510 million-$520 million, excluding any potential debt issuances.”
Habit non-cash closure expenses (FY2026): “We expect approximately $5 million of non-cash closure expenses for Habit as we opportunistically optimize our store network by making a small number of closures in subscale markets.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Franchise and property revenue | $2.90B | $3.10B | $3.25B | $3.31B | $3.48B | 35% |
Company Sales | $2.11B | $2.07B | $2.14B | $2.55B | $2.94B | 30% |
Franchise contributions for advertising and other services | $1.58B | $1.67B | $1.69B | $1.70B | $1.80B | 18% |
Franchise Segment Member | — | — | $1.50B | $1.49B | $1.61B | 16% |
Real Estate | $63M | $64M | $62M | $59M | $56M | 1% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.5B | 8.2B | 7.5B | 7.1B | 6.8B | 6.6B |
| Net Income | 1.7B | 1.6B | 1.5B | 1.6B | 1.3B | 1.6B |
| EPS | $6.27 | $5.55 | $5.22 | $5.59 | $4.57 | $5.21 |
| Free Cash Flow | 1.6B | 1.6B | 1.4B | 1.3B | 1.1B | 1.5B |
| ROIC | 37.4% | 55.8% | 62.9% | 69.1% | 63.7% | 34.1% |
| Gross Margin | - | 69.8% | 71.9% | 74.9% | 74.5% | 73.8% |
| Debt/Equity | 0.00 | -1.63 | -1.50 | -1.43 | -1.38 | -1.35 |
| Dividends/Share | $2.89 | $2.84 | $2.68 | $2.42 | $2.28 | $2.00 |
| Operating Income | 2.7B | 2.6B | 2.4B | 2.3B | 2.2B | 2.1B |
| Operating Margin | 31.5% | 31.3% | 31.8% | 32.8% | 32.0% | 32.5% |
| ROE | 0.0% | -20.8% | -19.2% | -19.1% | -15.4% | -19.4% |
| Shares Outstanding | 276M | 281M | 285M | 286M | 290M | 302M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 13.3B | 6.4B | 6.4B | 5.9B | 5.7B | 5.6B | 5.7B | 6.6B | 6.8B | 7.1B | 7.5B | 8.2B | 8.5B |
| Gross Margin | 27.1% | N/A | N/A | 49.7% | 71.3% | 77.9% | 73.4% | 73.8% | 74.5% | 74.9% | 71.9% | 69.8% | N/A |
| R&D | 30M | 28M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.4B | 1.5B | N/A | 999M | 895M | 917M | 1.1B | 1.1B | 1.1B | 1.2B | 1.2B | 1.3B | 1.3B |
| EBIT | 1.5B | 1.4B | 1.7B | 2.8B | 2.3B | 1.9B | 1.5B | 2.1B | 2.2B | 2.3B | 2.4B | 2.6B | 2.7B |
| Op. Margin | 11.4% | 22.3% | 26.5% | 47.0% | 40.4% | 34.5% | 26.6% | 32.5% | 32.0% | 32.8% | 31.8% | 31.3% | 31.5% |
| Net Income | 1.1B | 1.3B | 1.6B | 1.3B | 1.5B | 1.3B | 904M | 1.6B | 1.3B | 1.6B | 1.5B | 1.6B | 1.7B |
| Net Margin | 7.9% | 20.0% | 25.8% | 22.8% | 27.1% | 23.1% | 16.0% | 23.9% | 19.4% | 22.6% | 19.7% | 19.0% | 20.5% |
| Non-Recurring | 160M | -6.0M | 180M | 1.1B | 546M | 42M | 206M | 54M | 37M | 42M | 46M | 70M | 70M |
| Returns on Capital | |||||||||||||
| ROIC | 37.9% | 22.0% | 44.0% | 65.2% | 85.2% | 38.9% | 24.0% | 34.1% | 63.7% | 69.1% | 62.9% | 55.8% | 37.4% |
| ROE | 56.6% | 104.4% | -69.9% | -22.4% | -21.6% | -16.2% | -11.4% | -19.4% | -15.4% | -19.1% | -19.2% | -20.8% | 0.0% |
| ROA | 12.3% | 15.7% | 24.3% | 24.9% | 32.7% | 27.6% | 16.3% | 26.7% | 22.4% | 26.4% | 22.9% | 20.9% | 21.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.0B | 2.1B | 0 | 1.0B | 1.2B | 1.3B | 1.3B | 1.7B | 1.4B | 1.6B | 1.7B | 2.0B | 2.0B |
| Free Cash Flow | 1.0B | 1.2B | N/A | 712M | 942M | 1.1B | 1.1B | 1.5B | 1.1B | 1.3B | 1.4B | 1.6B | 1.6B |
| Owner Earnings | 1.7B | 1.8B | -310M | 712M | 989M | 1.1B | 1.1B | 1.5B | 1.2B | 1.4B | 1.4B | 1.7B | 1.7B |
| CapEx | 1.0B | 973M | 0 | 318M | 234M | 196M | 160M | 230M | 279M | 285M | 257M | 371M | 375M |
| Maint. CapEx | 328M | 319M | 310M | 253M | 137M | 112M | 146M | 164M | 146M | 153M | 175M | 206M | 221M |
| Growth CapEx | 705M | 654M | N/A | 65M | 97M | 84M | 14M | 66M | 133M | 132M | 82M | 165M | 154M |
| D&A | 328M | 319M | 310M | 253M | 137M | 112M | 146M | 164M | 146M | 153M | 175M | 206M | 221M |
| CapEx/OCF | 50.4% | 38.0% | 34.2% | 30.9% | 19.9% | 14.9% | 12.3% | 13.5% | 19.6% | 17.8% | 15.2% | 18.5% | 18.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 669M | 730M | 0 | 416M | 462M | 511M | 566M | 592M | 649M | 678M | 752M | 789M | 798M |
| Dividend Yield | 3.5% | 3.5% | N/A | 1.9% | 1.9% | 1.8% | 2.2% | 1.8% | 2.0% | 1.9% | 2.0% | 1.9% | 1.9% |
| Share Buybacks | 820M | 1.2B | 5.4B | 2.0B | 2.4B | 815M | 239M | 1.6B | 1.2B | 50M | 441M | 552M | 508M |
| Buyback Yield | 3.1% | 6.2% | 25.0% | 7.8% | 9.1% | 2.9% | 0.8% | 4.1% | 3.4% | 0.1% | 1.2% | 1.3% | 1.2% |
| Stock-Based Comp | 55M | 57M | 0 | 65M | 50M | 59M | 97M | 75M | 84M | 95M | 69M | 70M | 73M |
| Debt Repayment | 66M | 263M | 0 | 385M | 1.3B | 331M | 1.5B | 3.7B | 699M | 397M | 479M | 966M | 966M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.2B | 4.3B | 8.4B | 8.7B | 10.1B | 11.1B | 10.5B | 10.8B | 11.9B | 10.7B | 10.7B | 11.2B | 13.0B |
| Cash & Equiv. | 578M | 737M | 831M | 1.5B | 292M | 605M | 730M | 486M | 367M | 512M | 616M | 709M | 689M |
| Long-Term Debt | 1.2B | 3.8B | 9.1B | 9.4B | 9.8B | 10.1B | 10.3B | 11.2B | 11.5B | 11.1B | 11.3B | 11.9B | 10.2B |
| Debt/Equity | 1.14 | 5.52 | -1.64 | -1.61 | -1.31 | -1.46 | -1.42 | -1.35 | -1.38 | -1.43 | -1.50 | -1.63 | 0.00 |
| Interest Coverage | 10.0 | 9.4 | 5.1 | 5.8 | 4.6 | 3.7 | 2.7 | 3.9 | 3.9 | 3.9 | 4.4 | 4.7 | 4.7 |
| Equity | 1.5B | 911M | -5.6B | -6.3B | -7.9B | -8.0B | -7.9B | -8.4B | -8.9B | -7.9B | -7.6B | -7.3B | -7.3B |
| Total Assets | 8.3B | 8.1B | 5.5B | 5.3B | 4.1B | 5.2B | 5.9B | 6.0B | 5.8B | 6.2B | 6.7B | 8.2B | 8.2B |
| Total Liabilities | 6.7B | 7.1B | 11.1B | 11.6B | 12.1B | 13.2B | 13.7B | 14.3B | 14.7B | 14.1B | 14.4B | 15.5B | 15.5B |
| Intangibles | 318M | 271M | N/A | N/A | 242M | 244M | 343M | 359M | 354M | 377M | 416M | 909M | 899M |
| Retained Earnings | 1.7B | 1.1B | N/A | N/A | -7.6B | -7.6B | -7.5B | -8.0B | -8.5B | -7.6B | -7.3B | -7.0B | -7.0B |
| Working Capital | -856M | -1.4B | 199M | 995M | -94M | -14M | 14M | 117M | -56M | 332M | 602M | 524M | -1.1B |
| Current Assets | 1.6B | 1.7B | 1.5B | 2.5B | 1.2B | 1.5B | 1.7B | 1.5B | 1.6B | 1.6B | 1.9B | 2.0B | 2.0B |
| Current Liabilities | 2.4B | 3.1B | 1.3B | 1.5B | 1.3B | 1.5B | 1.7B | 1.4B | 1.7B | 1.3B | 1.3B | 1.5B | 3.1B |
| Per Share Data | |||||||||||||
| EPS | 2.32 | 2.90 | 4.10 | 3.77 | 4.69 | 4.14 | 2.94 | 5.21 | 4.57 | 5.59 | 5.22 | 5.55 | 6.27 |
| Owner EPS | 3.68 | 3.98 | -0.77 | 2.00 | 3.01 | 3.66 | 3.45 | 4.85 | 4.13 | 4.74 | 5.08 | 6.17 | 6.26 |
| Book Value | 3.41 | 2.06 | -14.01 | -17.82 | -24.11 | -25.65 | -25.66 | -27.70 | -30.61 | -27.51 | -26.87 | -26.08 | -26.39 |
| Cash Flow/Share | 4.52 | 4.83 | N/A | 2.90 | 3.58 | 4.21 | 4.24 | 5.64 | 4.92 | 5.61 | 5.93 | 7.16 | 7.10 |
| Dividends/Share | 1.56 | 1.74 | 1.73 | 0.90 | 1.44 | 1.68 | 1.88 | 2.00 | 2.28 | 2.42 | 2.68 | 2.84 | 2.89 |
| Shares Out. | 453.0M | 442.4M | 400.7M | 355.4M | 328.8M | 312.6M | 307.5M | 302.3M | 289.9M | 285.7M | 284.7M | 280.9M | 276.0M |
| Valuation | |||||||||||||
| P/E Ratio | 25.5 | 15.0 | 13.1 | 18.9 | 17.1 | 21.9 | 33.9 | 24.4 | 26.6 | 22.4 | 25.3 | 27.5 | 23.8 |
| P/FCF | 18.9 | 16.6 | N/A | 35.5 | 28.0 | 25.3 | 26.7 | 26.1 | 30.7 | 27.1 | 26.3 | 26.1 | 25.0 |
| EV/EBIT | 17.4 | 16.6 | 17.9 | 12.3 | 11.9 | 15.3 | 26.8 | 22.8 | 21.4 | 19.8 | 19.9 | 20.7 | 20.3 |
| Price/Book | 17.3 | 20.0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 2.0 | 3.2 | 3.1 | 3.7 | 4.2 | 5.1 | 4.6 | 5.0 | 4.7 | 5.0 | 4.9 | 4.9 | 4.8 |
| FCF Yield | 3.8% | 6.0% | N/A | 2.8% | 3.6% | 3.9% | 3.7% | 3.8% | 3.3% | 3.7% | 3.8% | 3.8% | 4.0% |
| Market Cap | 26.8B | 19.4B | 21.6B | 25.3B | 26.4B | 28.3B | 30.6B | 38.5B | 35.2B | 35.7B | 37.6B | 42.8B | 41.1B |
| Avg. Price | 42.77 | 47.20 | 49.84 | 61.64 | 73.35 | 91.92 | 83.65 | 109.22 | 111.07 | 123.35 | 130.31 | 144.09 | 148.92 |
| Year-End Price | 42.48 | 43.84 | 53.87 | 71.10 | 80.17 | 90.66 | 99.55 | 127.22 | 121.52 | 124.97 | 132.05 | 152.54 | 148.92 |
YUM BRANDS INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
YUM BRANDS INC trades at 26.8x trailing earnings, compared to its 15-year median P/E of 23.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 25.1x vs a median of 26.7x. The company's 5-year average ROIC is 57.1% with a gross margin of 73.0%. Total shareholder yield (dividends + buybacks) is 3.2%. At current prices, the estimated annualized return to fair value is +8.0%.
YUM BRANDS INC (YUM) has a net profit margin of 19.0%. This is a healthy margin.
YUM BRANDS INC (YUM) generated $1.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
YUM BRANDS INC (YUM) reported earnings per share (EPS) of $5.55 in its most recent fiscal year.
YUM BRANDS INC (YUM) has a return on equity (ROE) of -20.8%. A negative ROE may indicate losses or negative equity.
YUM BRANDS INC (YUM) has a 5-year average gross margin of 73.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for YUM BRANDS INC (YUM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
YUM BRANDS INC (YUM) has a book value per share of $-26.08, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is in the early innings of executing three core priorities—battling for the future consumer, accelerating restaurant unit economics, and reaching the full potential of Byte—which are expected to drive the next chapter of global growth. The company remains confident in meeting or exceeding its long-term growth algorithm excluding Pizza Hut, with particular momentum in Taco Bell driven by sustainable market share gains and digital penetration, while KFC is benefiting from innovation in crispy chicken and new occasions alongside record unit development. Unit development pipelines remain robust with high confidence in continued growth across all markets, though the Middle East conflict has created short-term delays in select markets such as the UAE and Turkey. The company expects to generate over $2.5 billion in annual cash from profit growth and leverage management, which will be deployed toward strategic investments, shareholder returns, and debt management while maintaining a 4x net leverage ratio.
Based on recent SEC filings and earnings calls, YUM BRANDS INC (YUM) has provided the following forward guidance: Taco Bell U.S. restaurant-level margins: 24.5% to 25.5% (FY2026); Interest expense: $510 million to $520 million (FY2026); Habit non-cash closure expenses: approximately $5 million (FY2026).