YUM BRANDS INC
$161.33
+1.99 (+1.25%) · delayed · Nov 13, 2026
Five-year price
52w $134.26 to $170.14
- Market cap
- $43.3B
- Enterprise value
- $54.5B
- P/E
- 29.1×
- 29.6× on 3y avg EPS
- EV / EBIT
- 21.2×
- FCF yield
- 3.8%
- ROIC
- 49.8%
- Debt / equity
- —
- Piotroski F
- 5/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 66.9%
- –ROE > 15% (5y avg)5y avg ROE n/a
- ●Stable operating marginsMargin volatility 0.5% (σ, 5y)
- ●Earnings convert to cashFCF / net income 93% (5y avg)
- ●Growing revenueRevenue CAGR 5y 7.8%
- ●Shrinking share countDiluted shares -8.5% over 5y
Value
0
- ○P/E below 15P/E 29.1
- ○EV/EBIT below 12EV/EBIT 21.2
- ○FCF yield above 6%FCF yield 3.8%
- –Price below Graham NumberGraham Number n/a
- –P/B below 3P/B n/a
Safety
0
- –Debt / equity below 0.5D/E n/a
- ○Debt payable in < 4 yrs of earningsNet debt $11.2B
- ○Interest coverage > 8xCoverage 5.0x
- ○Current ratio > 1.5Current ratio 1.35
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
33
- ●Adequate size (revenue > $2B)Revenue $8.2B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.35
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ○Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 30%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 29.6
- –P/E × P/B ≤ 22.5Product n/a
Valuation lab
What do you have to believe?
At $161.33, the market is pricing in about 12.4% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $11.2B · 268M shares · 5y revenue CAGR 7.8%
Intrinsic value
$104.21
Price
$161.33
Premium paid
55%
What the price implies
The market is paying for 12.4% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
60% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,356 | 5,878 | 5,688 | 5,597 | 5,652 | 6,584 | 6,842 | 7,076 | 7,549 | 8,214 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 1,682 | 2,761 | 2,296 | 1,930 | 1,503 | 2,139 | 2,187 | 2,318 | 2,403 | 2,574 |
| Operating margin | 26.5% | 47.0% | 40.4% | 34.5% | 26.6% | 32.5% | 32.0% | 32.8% | 31.8% | 31.3% |
| Pre-tax income | 1,345 | 2,274 | 1,839 | 1,373 | 1,020 | 1,674 | 1,662 | 1,818 | 1,900 | 2,077 |
| Income tax | — | 934 | 297 | 79 | 116 | 99 | 337 | 221 | 414 | 518 |
| Net income | 1,643 | 1,340 | 1,542 | 1,294 | 904 | 1,575 | 1,325 | 1,597 | 1,486 | 1,559 |
| EPS (diluted) | 4.10 | 3.77 | 4.69 | 4.14 | 2.94 | 5.21 | 4.57 | 5.59 | 5.22 | 5.55 |
| Diluted shares | 400 | 355 | 329 | 313 | 307 | 302 | 290 | 285 | 285 | 281 |
Who owns it