Yum! Brands Inc (YUM)
Fair ValueFundamental
73
Price
$136.34
Market Cap
$37.74B
Part 1 · What the company is worth
Overview
Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally. The company operates in four segments: KFC Division, Taco Bell Division, Pizza Hut Division, and Habit Burger & Grill Division. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill brands, which specialize in chicken, Mexican-style food and pizza categories, made-to-order chargrilled burgers, sandwiches, and other products. 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.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$8.72B
Trailing 12 months (through 6/30/2026)
Net Income
$2.22B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$1.64B
Total Equity
$-7.33B
Total Liabilities
$15.52B
Current Ratio
0.59
Interest Coverage
5.09
Debt/EBITDA
5.84
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$177.22
Current Price
$136.34
Margin of Safety
+23.1%
Fair Value Range
$139.90 - $214.54
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
17.15
ROE
-21.3%
P/B Ratio
-
P/FCF
22.16
Gross Margin
68.1%
ROIC
48.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
48.6%
WACC
6.4%
ROIC − WACC
+42.2 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 6.49%
- Price CAGR 8.32%
- ROIC 48.6%
- Gross Margin 68.1%
- P/FCF 22.16
- Operating Margin 31.0%
- Positive Free Cash Flow
- CapEx intensity
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 117.6%
- Revenue Growth 5Y 7.8%
- Earnings Surprise avg 2.8%
- PEG Ratio 1.29
- Earnings Quality (OCF/NI) 0.94
- Share Dilution -1.3%
- Net Margin Trend 25.4% vs 18.1%
- Piotroski F-Score 5/9
Failed (4)
- Current Ratio
- Low reliance on intangibles
- DCF valuation (Overvalued)
- Analyst Consensus 47% Buy
Unavailable (4)
- P/B Ratio NaN
- Dividend Payout NaN%
- Debt/Equity ratio
- Price below Graham Number
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Moderate: some gap between profits and cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Christopher Lee Turner | CEO & Director | 50 |
| Mr. Ranjith Roy | Chief Financial Officer | 44 |
| Ms. Tracy L. Skeans | COO and Chief People & Culture Officer | 52 |
| Mr. Sean C. Tresvant | Chief Consumer Officer & CEO of Taco Bell | 54 |
| Mr. James A. Dausch | Chief Digital & Technology Officer and President of Byte by Yum | 49 |
| Mr. Matthew Robert Morris | Head of Investor Relations | - |
| Ms. Erika Burkhardt | Chief Legal Officer & Corporate Secretary | 51 |
| Ms. Andrea Whitney | Chief Communications & Community Impact Officer | - |
| Mr. Ken Muench | Chief Marketing Officer | - |
| Mr. James Fripp | Chief Culture, Opportunity & Belonging Officer | - |
Audit Risk
5
Board Risk
2
Compensation Risk
4
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-20
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-05
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-01
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for YUM, sourced from Markets Gazette.
- 7/14/2026NEGATIVETaco Bell reportedly being investigated by health officials, as cyclosporiasis outbreak spreads
Yum Brands Inc. saw its shares decline by nearly 4% on Tuesday amid reports of an investigation by health officials into a cyclosporiasis outbreak linked to Taco Bell. The outbreak has reportedly spread, raising concerns about food safety and potential operational disruptions for the fast-food chain. Investors are closely monitoring the situation for any further developments that could impact the company's reputation and financial performance. The stock's significant drop reflects market apprehension regarding the potential fallout from these health-related issues.
- 6/16/2026NEUTRALYum! Will Sell Struggling Pizza Hut for $2.7 Billion
Yum! Brands has agreed to sell its struggling Pizza Hut U.S. division to private equity firm LongRange Capital for $2.7 billion. The transaction is anticipated to finalize in the third quarter. This strategic divestment allows Yum! Brands to sharpen its focus on its more robust brands, Taco Bell and KFC. While the sale of a underperforming asset can be viewed positively for streamlining operations, the substantial price tag and the impact on overall brand portfolio require careful investor consideration. The market will be watching how this move affects future growth trajectories and profitability.
- 6/16/2026NEGATIVEYum Brands sells a shrinking Pizza Hut for $2.7 billion
Yum Brands has agreed to sell its U.S. and international Pizza Hut operations to LongRange Capital for $1.5 billion, while Yum China will acquire the mainland China business for $1.2 billion. This strategic divestment comes as the Pizza Hut brand faces challenges, evidenced by the closure of 250 American stores. The sale signals a move by Yum Brands to streamline its portfolio and focus on more profitable segments, but the substantial sale of a historically significant brand, coupled with store closures, suggests underlying weakness and may weigh on investor sentiment.
- 6/3/2026NEUTRALYum Is In Exclusive Talks To Sell Pizza Hut To LongRange
Yum! Brands is reportedly in exclusive negotiations to divest its Pizza Hut division to private equity firm LongRange Capital. While the terms of the potential deal remain undisclosed, the sale would represent a significant strategic shift for Yum!, which has been focusing on its KFC and Taco Bell brands. Investors will be watching for details on the valuation and the impact on Yum!'s future growth strategy, as the divestiture could unlock capital for reinvestment or shareholder returns. The outcome will determine the future direction of both Yum! Brands and the Pizza Hut chain under new ownership.
- 2/26/2026POSITIVEPizza Hut rival closing 300 locations nationwide
Yum! Brands Inc. is outlining a strategic reorganization aimed at bolstering its profitability, with a potentially positive impact for investors. The company is considering the sale of its Pizza Hut brand and has already announced the closure of approximately 250 underperforming restaurants. This strategic move follows the revelation that Taco Bell and KFC generate around 90% of the group's operating profits, underscoring the need to divest from less performing assets. Portfolio rationalization and a sharpened focus on flagship brands like Taco Bell and KFC could translate into greater operational efficiency and higher margins, making Yum! Brands an attractive opportunity for those seeking growth through corporate restructuring.
via Markets Gazette