NYSE:YUM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer and 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: YUM's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

YUM

3.2%

US Hospitality

-4.6%

US Market


1 Year Return

16.0%

YUM

27.2%

US Hospitality

38.5%

US Market

Return vs Industry: YUM underperformed the US Hospitality industry which returned 25.3% over the past year.

Return vs Market: YUM underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

YUMIndustryMarket
7 Day-1.5%3.2%-4.6%
30 Day1.5%15.0%0.6%
90 Day-3.4%17.7%1.9%
1 Year18.3%16.0%28.4%27.2%41.5%38.5%
3 Year36.0%28.9%12.9%6.0%56.7%46.7%
5 Year102.2%32.6%69.6%52.9%123.5%98.6%

Long-Term 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?

34.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: YUM ($103.53) is trading above our estimate of fair value ($90.77)

Significantly Below Fair Value: YUM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: YUM is good value based on its PE Ratio (34.6x) compared to the US Hospitality industry average (42.6x).

PE vs Market: YUM is poor value based on its PE Ratio (34.6x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: YUM is poor value based on its PEG Ratio (2.2x)


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 24 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YUM's forecast earnings growth (15.6% per year) is above the savings rate (2%).

Earnings vs Market: YUM's earnings (15.6% per year) are forecast to grow slower than the US market (20.2% per year).

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

Revenue vs Market: YUM's revenue (7.1% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: YUM's revenue (7.1% 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?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YUM has a large one-off loss of $325.0M impacting its December 31 2020 financial results.

Growing Profit Margin: YUM's current net profit margins (16%) are lower than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: YUM's earnings have grown by 5.1% 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 (-30%) over the past year, making it difficult to compare to the Hospitality industry average (-58.6%).


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 (12.1%).

Interest Coverage: YUM's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: YUM's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: YUM's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 reasonable payout ratio (63.8%), YUM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YUM's dividends in 3 years are forecast to be well covered by earnings (47.4% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

David Gibbs (57 yo)

1.08yrs

Tenure

US$17,143,152

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 ($USD17.14M) is above average for companies of similar size in the US market ($USD10.48M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Gibbs
CEO & Director1.08yrsUS$17.14m0.028%
$ 8.9m
Christopher Turner
Chief Financial Officer1.5yrsUS$2.80m0.0011%
$ 339.3k
Tracy Skeans
COO & Chief People Officer0.083yrUS$5.43m0.0042%
$ 1.3m
Greg Creed
Part-time Advisor & Non-Independent Director6.25yrsUS$16.37m0.063%
$ 19.7m
Anthony Lowings
Chief Executive Officer of KFC Division2.08yrsUS$5.00m0.015%
$ 4.8m
Mark King
Chief Executive Officer of Taco Bell Corp1.5yrsUS$3.99m0.0014%
$ 446.1k
Clay Johnson
Chief Digital & Technology Officer1.33yrsno datano data
Keith Siegner
VP of Investor Relations4.58yrsno datano data
Scott Catlett
Chief Legal & Franchise Officer and Corporate Secretary2.58yrsno data0.00099%
$ 311.0k
Virginia Ferguson
Senior Director of Public Relationsno datano datano data
Jerilan Greene
Global Chief Communications & Public Affairs Officer and Chairman & CEO of Yum! Foundation0.58yrno datano data
Kevin Hochman
Chief Concept Officer & President of KFC -USno datano datano data

1.5yrs

Average Tenure

49yo

Average Age

Experienced Management: YUM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Gibbs
CEO & Director1.08yrsUS$17.14m0.028%
$ 8.9m
Greg Creed
Part-time Advisor & Non-Independent Director6.25yrsUS$16.37m0.063%
$ 19.7m
Jerilan Greene
Global Chief Communications & Public Affairs Officer and Chairman & CEO of Yum! Foundation0.58yrno datano data
Thomas Nelson
Independent Director15.08yrsUS$285.00k0.0051%
$ 1.6m
Paget Alves
Independent Director4.25yrsUS$270.00k0.0021%
$ 659.7k
Christopher Connor
Independent Director3.75yrsUS$273.33k0%
$ 0
Robert Walter
Independent Non-Executive Director12.75yrsUS$303.33k0.038%
$ 12.0m
Mirian Graddick-Weir
Independent Director9.08yrsUS$270.00k0%
$ 0
Brian Cornell
Independent Non-Executive Chairman2.25yrsUS$408.33k0.00015%
$ 47.1k
P. Skala
Independent Director5.08yrsUS$260.00k0.0017%
$ 546.6k
Tanya Domier
Independent Director3.08yrsUS$260.00k0.0016%
$ 518.4k
Elane Stock
Independent Director7.08yrsUS$260.00k0.0013%
$ 421.0k

4.7yrs

Average Tenure

61yo

Average Age

Experienced Board: YUM's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$31.416b
  • Shares outstanding: 300.06m
  • 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 2 REP 1 COMBRBRLMay 2019

Biography

YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Pizza Hut Division, the T...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:24
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.