Yum! Brands (YUM)

Consumer Discretionary · $43.0B market cap · SEC CIK 0001041061

Next reports on Feb 2, 2027, after the close, with analysts expecting $1.75 in earnings per share.

52-week range $134.26 to $170.14. 6% below its 52-week high and 19% above its low.

The case for YUM

• Cheap for its growth: 12.5× earnings, where 10% a year of growth plus a 1.9% dividend would justify about 26×.
• Generated $1.6B of free cash flow in FY2025, 20% of revenue.
• 39% of revenue drops through to net profit.
• Revenue growing 9.1% year over year.
• Earnings per share up 142.8%.
• Earns 41% a year on everything it owns (return on assets).

The case against

• Long-term debt of $11.9B would take 6 years of operating cash flow to repay.
• Owes more than it owns: shareholder equity is −$7.3B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
• Current liabilities exceed current assets (ratio 0.96).
• Price/sales of 4.9× is higher than 89% of Consumer Discretionary companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
• Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.

The financials

The financials, five years deep

Pulled from Yum! Brands's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Yum! Brands says it does

Yum! Brands, Inc. (referred to herein as “YUM”, the “Registrant” or the “Company”), was incorporated under the laws of the state of North Carolina in 1997. The principal executive offices of YUM are located at 1441 Gardiner Lane, Louisville, Kentucky 40213, and the telephone number at that location is (502) 874-8300. Our website address is https://www.yum.com . YUM, together with its subsidiaries, is referred to in this Form 10-K annual report (“Form 10-K”) as the Company. The terms “we,” “us” and “our” are also used in the Form 10-K to refer to the Company. Throughout this Form 10-K, the terms “restaurants,” “stores” and “units” are used interchangeably. While YUM does not directly own or operate any restaurants, throughout this document we may refer to restaurants that are owned or operated by our subsidiaries as being Company-owned. Overview of Business YUM has over 63,000 restaurants in 155 countries and territories primarily…

Risk factors YUM lists in its 10-K

• Food safety and food- or beverage-borne illness concerns may have an adverse effect on our business and/or our growth prospects
• Our business may be adversely affected by adverse public health conditions or the occurrence of other catastrophic or unforeseen events
• Our operating results and growth strategies are closely tied to the success of our Concepts
• Our growth strategy depends upon our and our Concepts’ franchisees
• ability to successfully open new restaurants and to operate these restaurants profitably
• We may not realize the anticipated benefits from past or potential future acquisitions, investments or other strategic transactions, or our portfolio business model
• We have significant exposure to the Chinese market through our largest franchisee, Yum China, which subjects us to risks that could negatively affect our business and/or our growth prospects
• Our global operations subject us to risks that could negatively affect our business
• Foreign currency risks and foreign exchange controls could adversely affect our financial results
• The failure to maintain satisfactory compliance with
• egal requirements regarding data privacy, data protection and emerging technologies may adversely affect our business and/or growth prospects and subject us to penalties
• Unreliable or inefficient restaurant technology or the failure to successfully implement technology initiatives could adversely impact our business and the overall consumer experience
• There are risks associated with our increasing dependence on digital commerce and delivery platforms to maintain and grow sales
• Our inability or failure to recognize, respond to and effectively manage the increased impact of social media could adversely impact our business and/or growth prospects
• Failure to protect our trademarks or other intellectual property could harm our Concepts’ brands and overall business and/or growth prospects
• Shortages or interruptions in the availability and delivery of food, equipment and other supplies may increase costs or reduce revenues
• The loss of key personnel, labor shortages and increased labor costs could adversely affect our business
• An increase in food prices and other operating costs may adversely impact our business and/or our growth prospects
• Our success depends substantially on our corporate reputation and on the value and perception of our brands
• We may be adversely affected by climate change
• We may be subject to litigation that could adversely affect us by increasing our expenses, diverting management attention or subjecting us to significant monetary damages and other remedies
• Changes in, or non-compliance with, legal requirements may adversely affect our business operations, growth prospects or financial condition
• Tax matters, including changes in tax rates or laws, disagreements with taxing authorities, imposition of new taxes and our restructurings could impact our financial results and growth prospects
• The Yum China spin-off and certain related transactions could result in substantial U.S. tax liability
• The Yum China spin-off may be subject to China
• Our business may be adversely impacted by changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and interest rate conditions, in markets in which we operate
• The retail food industry is highly competitive

Filings

Other Consumer Discretionary companies