YUM
Yum! Brands
$151.25
▼ 0.7%Updated Aug 7, 11:30 AM ET
YUM at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 58/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 9.9% over the last 12 months
Market Cap
$43.46B
P/E
26.05x
Forward P/E (est.)
21.04x
ROE
117.6%
Revenue Growth
9.7%
EPS Growth
23.8%
Profit Margin
20.5%
FCF Yield
3.8%
Debt / Equity
4.31x
ROIC
—
Interest Coverage
—
Current Ratio
0.65x
Dividend Yield
1.9%
Implied Growth (rev. DCF)
5.0%
Rating Score
58/100
Yum! Brands (YUM) is a large-cap company in the Restaurants industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $43.46B.
In its latest reported year it generated about $8.21B in revenue and $1.56B in net profit.
Our model rates YUM Favorable (58/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
32.0% average over the last 3 years
±5.8 pts around 33.5% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 9 of 9 years
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what YUM's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. YUM trades near $151.25, below its 50-day average ($153.84) and 200-day average ($153.57). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 70 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. YUM's is $3.29 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month YUM found buyers near $146.61 (support) and sellers near $164.95 (resistance); its 52-week range is $137.33–$169.39. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
5.7%
Revenue moved from $6.36B in 2016 to $8.21B in 2025, a 2.9% compound annual growth rate. The most recent year grew a steady 9.7% year over year. Slower, mature growth is common for established businesses.
Gross Margin
45.7%
Operating Margin
31.3%
Net Margin
19.0%
ROE
117.6%
Yum! Brands keeps about 20.5% of each sales dollar as net profit, with a 45.7% gross margin and 31.3% operating margin. Return on equity is 117.6%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$2.20B
Net Debt
$1.51B
Net Debt / EBITDA
0.59x
Debt / Equity
4.31x
Leverage: debt-to-equity is 4.3x, with a current ratio of 0.7x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $2.20B of total debt against $689.00M of cash.
Operating CF
$2.01B
Free Cash Flow
$1.64B
FCF Margin
20.0%
In the latest year Yum! Brands produced about $2.01B of operating cash flow and $1.64B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.9%
Per share (latest FY)
$2.84
Total paid (latest FY)
$789.00M
History on record
9 years
dividend uses 48% of free cash flow
51% of net income paid out
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
26.05x
P/S
5.19x
P/B
37.12x
EV / EBITDA
—
YUM trades at 26.0x trailing earnings (about 21.0x on estimated forward earnings), 5.2x sales, and 37.1x book value. Reverse-engineering today's price implies the market expects roughly 5.0% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$140.17
Current price
$151.25
Starting FCF (latest 10-K)
$1.64B
Growth, years 1–5
9.7%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where YUM sits versus its Consumer Discretionary sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 85 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How YUM stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (158 S&P 500 companies), YUM ranks #25 of 158 by our overall rating. It trades at roughly in line versus the sector on earnings (26x P/E vs. 25.8x median) with a higher return on equity (117.6% vs. 26.2%) and faster revenue growth (9.7% vs. 6.8%).
P/E vs sector
26x
median 25.8x
ROE vs sector
117.6%
median 26.2%
Growth vs sector
9.7%
median 6.8%
Sector rank
#25
of 158 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 158 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $151.25 today · expected CAGR -2% – 9%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.04B | $9.94B | $10.93B | $12.03B | $13.23B |
| Net income | $1.72B | $1.89B | $2.08B | $2.28B | $2.51B |
| EPS | $5.97 | $6.57 | $7.23 | $7.95 | $8.75 |
| Share price (low) | $95.60 | $105.16 | $115.68 | $127.24 | $139.97 |
| Share price (high) | $155.35 | $170.88 | $187.97 | $206.77 | $227.45 |
| CAGR (low–high) | -37% / 3% | -17% / 6% | -9% / 8% | -4% / 8% | -2% / 9% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for YUM:
- High net margins (20.5%) point to pricing power or efficiency.
- Strong return on equity (117.6%) shows capital is put to work well.
- Our model's overall read is Favorable (58/100).
The case against YUM:
- Elevated leverage (debt/equity 4.3x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 4.3x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Yum! Brands is a large-cap consumer discretionary business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 26.0x earnings, which our model scores Favorable (58/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 32 Wall Street analysts covering YUM recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
YUM's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
YUM — frequently asked questions
Is YUM a good stock to buy?
We don't give buy or sell advice. Our model rates Yum! Brands Favorable (58/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is YUM's rating on The Stocks School?
Yum! Brands currently scores 58/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does YUM's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Yum! Brands's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for YUM calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this YUM analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell YUM. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.