NYSE:YUM

Stock Analysis Report

Executive Summary

YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide.


Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Yum! Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: YUM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.1%

YUM

20.7%

US Hospitality

9.4%

US Market


1 Year Return

-25.2%

YUM

-40.8%

US Hospitality

-6.8%

US Market

Return vs Industry: YUM exceeded the US Hospitality industry which returned -43% over the past year.

Return vs Market: YUM underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

YUMIndustryMarket
7 Day14.1%20.7%9.4%
30 Day-13.1%-19.9%-3.9%
90 Day-25.9%-45.3%-16.5%
1 Year-24.0%-25.2%-39.2%-40.8%-4.8%-6.8%
3 Year23.7%18.2%-25.7%-30.7%23.4%15.2%
5 Year44.3%-5.2%-20.1%-28.9%41.3%25.7%

Price Volatility Vs. Market

How volatile is Yum! Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yum! Brands undervalued compared to its fair value and its price relative to the market?

21.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YUM ($75.37) is trading below our estimate of fair value ($96.22)

Significantly Below Fair Value: YUM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: YUM is poor value based on its PE Ratio (17.8x) compared to the Hospitality industry average (12.8x).

PE vs Market: YUM is poor value based on its PE Ratio (17.8x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: YUM is poor value based on its PEG Ratio (61.6x)


Price to Book Ratio

PB vs Industry: YUM has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Yum! Brands forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YUM's forecast earnings growth (0.3% per year) is below the savings rate (1.7%).

Earnings vs Market: YUM's earnings (0.3% per year) are forecast to grow slower than the US market (13.3% per year).

High Growth Earnings: YUM's earnings are forecast to grow, but not significantly.

Revenue vs Market: YUM's revenue (3.8% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: YUM's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if YUM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Yum! Brands performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YUM has high quality earnings.

Growing Profit Margin: YUM's current net profit margins (23.1%) are lower than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: YUM's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: YUM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: YUM had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Hospitality industry average (1.6%).


Return on Equity

High ROE: YUM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Yum! Brands's financial position?


Financial Position Analysis

Short Term Liabilities: YUM has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: YUM has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: YUM has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: YUM's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: YUM's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: YUM's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Yum! Brands's current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: YUM's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.89%).

High Dividend: YUM's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (5.26%).


Stability and Growth of Payments

Stable Dividend: YUM's dividend payments have been volatile in the past 10 years.

Growing Dividend: YUM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.9%), YUM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YUM's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

David Gibbs (56yo)

0.25

Tenure

US$6,996,997

Compensation

Mr. David W. Gibbs is Chief Executive Officer of YUM! Brands, Inc. since January 1, 2020 and has been its Director since November 1, 2019. Mr. Gibbs served as Chief Operating Officer at YUM! Brands, Inc. s ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD7.00M) is below average for companies of similar size in the US market ($USD11.77M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Gibbs
CEO & Director0.25yrUS$7.00m0.024% $5.4m
Tracy Skeans
Chief Transformation & People Officer4.25yrsUS$4.07m0.0065% $1.5m
Greg Creed
Part-time Advisor & Non-Independent Director5.42yrsUS$14.01m0.063% $14.2m
David Russell
Senior VP of Finance & Corporate Controller9.17yrsUS$1.40m0.0033% $741.4k
Christopher Turner
Chief Financial Officer0.67yrno datano data
Keith Siegner
VP of Investor Relations3.75yrsno datano data
Scott Catlett
General Counsel & Corporate Secretary1.75yrsno data0.00099% $224.5k
Virginia Ferguson
Senior Director of Public Relationsno datano datano data
Jerilan Greene
Global Chief Communications & Public Affairs Officerno datano datano data
Kevin Hochman
Chief Concept Officer & President of KFC -USno datano datano data

1.8yrs

Average Tenure

46yo

Average Age

Experienced Management: YUM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Gibbs
CEO & Director0.25yrUS$7.00m0.024% $5.4m
Greg Creed
Part-time Advisor & Non-Independent Director5.42yrsUS$14.01m0.063% $14.2m
Thomas Nelson
Independent Director14.25yrsUS$265.00k0.0044% $1.0m
Paget Alves
Independent Director3.42yrsUS$240.00k0.0021% $476.1k
Michael Cavanagh
Independent Director7.42yrsUS$240.00k0.0033% $752.7k
Robert Walter
Independent Non-Executive Director11.92yrsUS$405.00k0.038% $8.6m
Mirian Graddick-Weir
Independent Director8.25yrsUS$240.00kno data
Brian Cornell
Independent Non-Executive Chairman1.42yrsUS$260.00k0.00015% $34.0k
P. Skala
Independent Director4.25yrsUS$240.00k0.0017% $394.5k
Elane Stock
Independent Director6.25yrsUS$240.00k0.0013% $303.8k

5.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: YUM's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: YUM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Yum! Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yum! Brands, Inc.
  • Ticker: YUM
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$22.673b
  • Shares outstanding: 300.82m
  • Website: https://www.yum.com

Number of Employees


Location

  • Yum! Brands, Inc.
  • 1441 Gardiner Lane
  • Louisville
  • Kentucky
  • 40213
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YUMNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1997
TGRDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1997
TGRXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 1997
0QYDLSE (London Stock Exchange)YesCommon StockGBUSDSep 1997
YUMSWX (SIX Swiss Exchange)YesCommon StockCHCHFSep 1997
YUM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1997
YUMWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1997
TGRETLX (Eurotlx)YesCommon StockITEURSep 1997
YUMR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM NPVBRBRLMay 2019

Biography

YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates in three segments: the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company operates restaurants under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories. As of December 31, 2018, it had 22,621 KFC units; 18,431 Pizza Hut units; and 7,072 Taco Bell units in approximately 140 countries and territories. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 01:49
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.