YUM
BULLISH
$149.02
Live
Yum! Brands, Inc. · NYSE
Target $164.64
(+10.5%)
$122.13
52W Range
$163.3
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$41.57B
P/E
29.05
ROE
N/A
Profit margin
18.0%
Debt/Equity
N/A
Dividend yield
1.91%
AI Analysis
AI-powered fundamental assessment
Confidence
85%
Yum! Brands presents a compelling investment case supported by strong profitability, consistent earnings growth, and a favorable valuation relative to the Consumer Cyclical sector. Despite recent insider selling, the company continues to deliver robust operating margins (34.41%) and ROA (24.03%), outperforming sector averages in efficiency and margin discipline. The stock trades at a forward P/E of 24.51, below the sector’s 49.07 average, while offering a 1.91% dividend yield with a sustainable 54.6% payout ratio. Analysts are aligned with a 'buy' recommendation and a $164.64 target, implying 10.5% upside, supported by accelerating YoY EPS growth of 17.0% and improving quarterly momentum.
Key Strengths
Operating margin of 34.41% significantly exceeds sector average of 13.92%, reflecting pricing power and franchise model efficiency
ROA of 24.03% demonstrates superior asset utilization compared to sector peers
Forward P/E of 24.51 is 50% below sector average (49.07), offering valuation cushion
Revenue growth of 8.40% YoY outpaces key peers like Hilton (3.5%) and Lululemon (6.5%)
Dividend yield of 1.91% with a sustainable 54.6% payout ratio provides income stability
Key Risks
Price/Book ratio of -5.52 indicates negative book value, raising concerns about accumulated debt or intangible asset overhang
Insider selling activity totaling $4.92M over the past 6 months signals potential lack of confidence among executives
Limited visibility on cash flow metrics (Free Cash Flow, Operating Cash Flow missing) creates opacity in capital allocation flexibility
Earnings volatility evident in recent quarters with 2 misses in last 4, including a -10.1% surprise in Feb 2024
Sector-wide headwinds in consumer discretionary spending could pressure same-store sales growth
AI Fair Value Estimate
Based on comprehensive analysis
$164.64
+10.5% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
85
Excellent
90
82
85
80
86
AI Verdict
Yum! Brands scores highly across value, health, and future growth dimensions, trading at a steep discount to sector peers on earnings while maintaining elite profitability and solid growth momentum. The $164.64 analyst target implies meaningful upside from current levels, supported by strong ROA and margin resilience in a challenging consumer environment.
Key drivers: Valuation discount to sector (P/E 24.5 vs 49.1), Superior operating margin and ROA, Accelerating YoY EPS growth (17.0%)
Confidence
85%
Value
90/100
Yum trades at a steep discount to the Consumer Cyclical sector’s average P/E of 49.07 despite stronger-than-average profitability, suggesting undervaluation, though negative book value warrants caution
Positives
- Forward P/E of 24.51 is significantly below sector average of 49.07
- Price/Sales of 5.16 compares favorably to CMG (7.5+) and HLT (high-single digits)
Watchpoints
- Price/Book of -5.52 raises red flag about balance sheet integrity
- Lack of EV/EBITDA and EV/Revenue limits enterprise valuation clarity
Future
82/100
Revenue and earnings are on an upward trajectory, with 17.0% YoY EPS growth and improving recent quarters, though price momentum has lagged with only 1.6% return over the past 6 months
Positives
- 17.0% YoY EPS growth indicates strong earnings momentum
- Revenue growth of 8.40% outpaces several large peers including Hilton and Lululemon
Watchpoints
- Q/Q earnings growth has slowed to 3.90%, signaling potential near-term saturation
- Forward P/E compression risk if growth decelerates amid high base
Past
85/100
Yum has delivered strong long-term profitability and 56.1% total return over five years, but recent earnings inconsistency and volatility in quarterly surprises highlight execution risks
Positives
- Consistent profitability with gross margin of 46.17% and operating margin of 34.41%
- 5-year stock return of +56.1% reflects durable shareholder value creation
Watchpoints
- Earnings misses in 2 of the last 4 quarters, including a significant -10.1% surprise
- Quarterly earnings growth has been volatile, ranging from +49% to -11.5%
Health
80/100
Liquidity is strong with current and quick ratios above 1.4, but the absence of debt and cash data, combined with negative book value, limits full financial health clarity relative to peers
Positives
- Current ratio of 1.69 and quick ratio of 1.46 indicate solid short-term liquidity
- High ROA of 24.03% reflects efficient use of assets despite missing debt/equity data
Watchpoints
- Debt/Equity and Total Debt/Total Cash data unavailable, limiting leverage assessment
- Negative book value suggests potential long-term balance sheet weakness
Dividend
86/100
Yum offers a reliable 1.91% yield with a healthy 54.6% payout ratio, suggesting dividend sustainability, though lack of historical yield data limits visibility into policy consistency
Positives
- 1.91% dividend yield is attractive in low-yield environment
- 54.58% payout ratio is conservative and sustainable given earnings stability
Watchpoints
- No 5-year yield average or ex-dividend date provided, limiting policy transparency
- Dividend growth trend not disclosed, raising questions about long-term commitment
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$149.02
Analyst Target
$164.64
Upside/Downside
+10.5%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for YUM and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
YUM
Yum! Brands, Inc.
Primary
|
+56.1% | +28.0% | +11.1% | +1.6% | +3.1% | -0.1% |
|
CMG
Chipotle Mexican Grill, Inc.
Peer
|
+25.2% | +3.6% | -47.3% | -39.7% | -24.4% | +3.2% |
|
JD
JD.com, Inc.
Peer
|
-58.0% | -20.7% | -15.8% | -5.9% | +6.6% | +5.3% |
|
EBAY
eBay Inc.
Peer
|
+61.4% | +122.8% | +39.6% | +7.3% | +5.5% | +4.2% |
|
DHI
D.R. Horton, Inc.
Peer
|
+67.4% | +52.2% | +28.4% | +1.8% | +16.1% | +6.7% |
YUM
Yum! Brands, Inc.
Primary
5Y
+56.1%
3Y
+28.0%
1Y
+11.1%
6M
+1.6%
1M
+3.1%
1W
-0.1%
CMG
Chipotle Mexican Grill, Inc.
Peer
5Y
+25.2%
3Y
+3.6%
1Y
-47.3%
6M
-39.7%
1M
-24.4%
1W
+3.2%
JD
JD.com, Inc.
Peer
5Y
-58.0%
3Y
-20.7%
1Y
-15.8%
6M
-5.9%
1M
+6.6%
1W
+5.3%
EBA
eBay Inc.
Peer
5Y
+61.4%
3Y
+122.8%
1Y
+39.6%
6M
+7.3%
1M
+5.5%
1W
+4.2%
DHI
D.R. Horton, Inc.
Peer
5Y
+67.4%
3Y
+52.2%
1Y
+28.4%
6M
+1.8%
1M
+16.1%
1W
+6.7%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
29.05
Forward P/E
24.51
PEG Ratio
N/A
P/B Ratio
-5.52
P/S Ratio
5.16
EV/Revenue
6.55
EV/EBITDA
18.73
Market Cap
$41.57B
Profitability
Profit margins and return metrics
Profit Margin
17.95%
Operating Margin
34.41%
Gross Margin
46.17%
ROE
N/A
ROA
24.03%
Growth
Revenue and earnings growth rates
Revenue Growth
+8.4%
Earnings Growth
+4.4%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+3.9%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
N/A
Current Ratio
1.69
Good
Quick Ratio
1.46
Good
Cash/Share
$3.76
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-04
$N/A
2025-11-04
$1.58
+6.7% surprise
2025-08-05
$1.44
-1.3% surprise
2025-04-30
$1.3
+1.5% surprise
Consumer Cyclical Sector Comparison
Comparing YUM against 386 companies in the Consumer Cyclical sector
(23 bullish, 133 neutral, 230 bearish)
P/E Ratio
29.05
This Stock
vs
33.98
Sector Avg
-14.5%
(Discount)
Profit Margin
17.95%
This Stock
vs
-5.4%
Sector Avg
-432.7%
(Weaker)
Revenue Growth
8.4%
This Stock
vs
28.42%
Sector Avg
-70.4%
(Slower)
Current Ratio
1.69
This Stock
vs
2.46
Sector Avg
-31.0%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
YUM
Yum! Brands, Inc.
|
BULLISH | $41.57B | 29.05 | -% | 18.0% | $149.02 | |
|
CMG
Chipotle Mexican Grill, Inc.
|
BULLISH | $41.74B | 27.94 | 45.0% | 13.0% | $31.57 | Compare |
|
JD
JD.com, Inc.
|
NEUTRAL | $41.85B | 15.31 | 7.6% | 1.5% | $28.93 | Compare |
|
EBAY
eBay Inc.
|
NEUTRAL | $42.2B | 21.92 | 40.8% | 18.3% | $93.36 | Compare |
|
DHI
D.R. Horton, Inc.
|
NEUTRAL | $45.34B | 15.01 | 13.1% | 9.5% | $159.9 | Compare |
YUM
Yum! Brands, Inc.
BULLISH
Mkt Cap
$41.6B
P/E
29.0
ROE
-%
Price
$149.02
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-11 | POWELL AARON | Officer | Option Exercise | 28,990 | $3,670,877 |
| 2025-11-11 | POWELL AARON | Officer | Sale | 2,790 | $419,839 |
| 2025-11-07 | NELSON THOMAS C | Director | Option Exercise | 3,096 | $153,747 |
| 2025-11-06 | MEZVINSKY SCOTT | Officer | Sale | 1,755 | $261,162 |
| 2025-11-05 | BURKHARDT ERIKA | Officer | Option Exercise | 4,073 | $418,990 |
| 2025-11-05 | MEZVINSKY SCOTT | Officer | Option Exercise | 409 | $20,311 |
| 2025-11-05 | BURKHARDT ERIKA | Officer | Sale | 1,269 | $189,551 |
| 2025-11-05 | MEZVINSKY SCOTT | Officer | Sale | 273 | $42,116 |
| 2025-10-01 | MEZVINSKY SCOTT | Officer | Option Exercise | 409 | $20,311 |
| 2025-10-01 | SKALA JUSTIN PETER | Director | Stock Award | 2,129 | - |
| 2025-10-01 | DOMIER TANYA L | Director | Stock Award | 2,132 | - |
| 2025-10-01 | MEZVINSKY SCOTT | Officer | Sale | 275 | $41,962 |
| 2025-09-15 | GIBBS DAVID W | Chief Executive Officer | Option Exercise | 10,972 | $567,189 |
| 2025-09-15 | GIBBS DAVID W | Chief Executive Officer | Sale | 7,176 | $1,074,965 |
| 2025-09-02 | MEZVINSKY SCOTT | Officer | Option Exercise | 409 | $20,311 |
POWELL AARON
Officer
2025-11-11
28,990 shares
·
$3,670,877
POWELL AARON
Officer
2025-11-11
2,790 shares
·
$419,839
NELSON THOMAS C
Director
2025-11-07
3,096 shares
·
$153,747
MEZVINSKY SCOTT
Officer
2025-11-06
1,755 shares
·
$261,162
BURKHARDT ERIKA
Officer
2025-11-05
4,073 shares
·
$418,990
MEZVINSKY SCOTT
Officer
2025-11-05
409 shares
·
$20,311
BURKHARDT ERIKA
Officer
2025-11-05
1,269 shares
·
$189,551
MEZVINSKY SCOTT
Officer
2025-11-05
273 shares
·
$42,116
MEZVINSKY SCOTT
Officer
2025-10-01
409 shares
·
$20,311
SKALA JUSTIN PETER
Director
2025-10-01
2,129 shares
DOMIER TANYA L
Director
2025-10-01
2,132 shares
MEZVINSKY SCOTT
Officer
2025-10-01
275 shares
·
$41,962
GIBBS DAVID W
Chief Executive Officer
2025-09-15
10,972 shares
·
$567,189
GIBBS DAVID W
Chief Executive Officer
2025-09-15
7,176 shares
·
$1,074,965
MEZVINSKY SCOTT
Officer
2025-09-02
409 shares
·
$20,311
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
25 analysts
Barclays
2025-11-05
Overweight
Overweight
Bernstein
2025-11-05
Market Perform
Market Perform
Piper Sandler
2025-11-05
Neutral
Neutral
Evercore ISI Group
2025-11-05
In-Line
Outperform
BMO Capital
2025-11-05
Market Perform
Market Perform
TD Cowen
2025-11-05
Hold
Hold
Guggenheim
2025-10-28
Buy
Buy
Barclays
2025-10-22
Overweight
Overweight
Citigroup
2025-10-20
Neutral
Neutral
RBC Capital
2025-10-09
Sector Perform
Past News Coverage
Recent headlines mentioning YUM from our newsroom.
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No matching news yet.