Yum! Brands, Inc.

Valuation Analysis

About the Company

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.

Yum! Brands, Inc. Stock at a Glance

Yum! Brands, Inc. (YUM) is currently trading at $154.31 with a market capitalization of $42.5B. The trailing P/E ratio stands at 24.89x, with a forward P/E of 20.59x. The 52-week range spans from $137.33 to $169.39; the current price is 8.9% below the yearly high. Year-over-year revenue growth stands at +15.2%. The net profit margin stands at 20.48%.

💰 Dividend

Yum! Brands, Inc. pays an annual dividend of $3.00 per share, representing a yield of 1.94%. The payout ratio stands at 46.45%.

📊 Analyst Rating

22 analysts rate Yum! Brands, Inc. (YUM) on consensus: Buy. The average price target is $174.23, implying +12.91% from the current price. Analyst price targets range from $147.00 to $200.00.

Yum! Brands, Inc.: The Investment Case in Detail

Yum! Brands, Inc. (YUM) operates in the Consumer Cyclical — specifically Restaurants — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 15.2% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 72.2% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 45.66% gross margin and 31.08% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

What to Watch Next

• The forward P/E of 20.59x is meaningfully below the trailing 24.89x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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