Jim Cramer Urges Investors to 'Own Yum! Brands' Amid Turnaround Momentum

Jim Cramer has publicly advocated for Yum! Brands (YUM), urging investors to embrace the stock as a core holding in consumer discretionary portfolios. The recommendation reflects growing confidence in the company’s turnaround strategy following several years of stagnation and franchise underperformance. Cramer highlighted Yum’s diversified footprint across key markets, including the U.S., China, and Europe, as a strategic advantage in a volatile macro environment. Yum! Brands reported fiscal 2025 revenues of $6.4 billion, marking a 6.3% year-over-year increase, driven by stronger same-store sales in its KFC and Taco Bell segments. The company’s international segment accounted for 58% of total revenue, with China showing a 12% rebound in comparable restaurant sales during the fourth quarter. These figures underscore a meaningful recovery in both customer traffic and operational efficiency. The stock has gained 21% year-to-date as of early February 2026, outperforming the broader S&P 500 Consumer Discretionary Index. Analysts note that YUM’s debt reduction efforts—cutting net leverage to 2.7x EBITDA from 4.1x in 2022—have improved financial flexibility and supported its dividend consistency. Institutional ownership has also increased, rising from 51% to 63% over the past 18 months. Market participants, particularly retail traders and growth-focused funds, may take note of Cramer’s call, potentially boosting short-term trading volume. The recommendation could influence brokerages’ target price revisions and amplify interest in the consumer discretionary sector. Investors in other restaurant chains, such as McDonald’s (MCD) and Chipotle (CMG), may reassess their positions in light of YUM’s momentum.