Yum! Brands, Inc. (YUM) AI Stock Analysis

YUM! Brands, Inc., along with its subsidiaries, operates as a developer, operator, and franchisor of quick service restaurants worldwide. The company is organized into four primary segments: the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division. Each segment oversees a portfolio specializing in chicken, pizza, made-to-order chargrilled burgers, sandwiches, and Mexican-style cuisine. Headquartered in Louisville, Kentucky, the company maintains over 53,000 restaurants across approximately 157 countries and territories, emphasizing franchise partnerships as a key driver of growth and operational efficiency.

Annual revenue increased from $6.58B in FY2021 to $8.21B in FY2025, representing a 5-year revenue CAGR of 7.8% from FY2020 to FY2025. Annual revenue growth improved from 3.4% in FY2023 and 6.7% in FY2024 to 8.8% in FY2025. Net income was $1.57B in FY2021, $1.32B in FY2022, $1.60B in FY2023, $1.49B in FY2024, and $1.56B in FY2025, with EPS increasing from $4.47 to $6.05 over that span. Operating margin moderated from 32.5% in FY2021 to 30.8% in FY2025. For the trailing twelve months, revenue reached $8.72B with an operating margin of 32.8% and EPS of $7.94. In the latest quarter ended June 30, 2026, quarterly revenue growth was 12.2% year-over-year, and quarterly earnings growth reached 131.6%.

As of June 30, 2026, Yum! Brands held $674.0M in cash and short-term investments against total debt of $12.28B, resulting in net debt of $11.60B. The company recorded negative shareholders' equity of -$7.11B, total assets of $8.68B, and a current ratio of 0.59. During FY2025, operating cash flow reached $2.01B and free cash flow was $1.64B. Capital allocation in FY2025 included $371.0M in capital expenditures, $552.0M in share buybacks, and $789.0M in dividends paid, contributing to a 5-year share count change of -6.4%.

YUM trades at a trailing P/E of 19.0x, below the median of its S&P 500 Consumer Cyclical peers of 20.1x. However, its forward P/E of 20.4x is higher than the peer median of 15.6x. The company has an EV to EBITDA multiple of 17.0x, above the peer median of 13.2x, and a price-to-sales multiple of 4.7x compared to the peer median of 2.0x. Over the past year, the stock returned 7.0%, trailing the 16.8% return for the S&P 500 (SPY), while its 5-year return of 32.2% also lagged SPY's 83.0%.

Yum! Brands offers an annual forward dividend of $3.00, yielding 1.99% with a payout ratio of 46.0%. Dividends are distributed on a quarterly schedule and have been paid for 23 consecutive years. Over the past 5 years, the annualized dividend growth rate was 8.6%. The company's last ex-dividend date was September 9, 2026.

Wall Street sentiment includes 10 Strong Buy, 3 Buy, and 13 Hold ratings, with 0 Sell and 0 Strong Sell ratings. The mean price target is $171.06, which sits 13.7% above the last close of $150.51. For the fiscal year ending December 31, 2026, analysts estimate revenue of $8.68B and EPS of $6.35, representing EPS growth of 4.9%. Yum! Brands beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Yum! Brands, Inc. (YUM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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