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YUM

Yum! BrandsNYSE:YUM Stock Report

Market Cap

US$37.1b

7D

-2.3%

1Y

36.8%

Updated

23 Sep, 2021

Data

Company Financials +
YUM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends4/6

YUM Overview

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

Yum! Brands Competitors

McDonald's

NYSE:MCD

US$181.6b

Starbucks

NasdaqGS:SBUX

US$133.3b

Chipotle Mexican Grill

NYSE:CMG

US$54.4b

Restaurant Brands International

NYSE:QSR

US$29.1b

Price History & Performance

Summary of all time highs, changes and price drops for Yum! Brands
Historical stock prices
Current Share PriceUS$124.98
52 Week HighUS$89.12
52 Week LowUS$135.77
Beta1.03
1 Month Change-6.41%
3 Month Change6.59%
1 Year Change36.79%
3 Year Change38.38%
5 Year Change39.16%
Change since IPO1,566.40%

Recent News & Updates

Sep 21

Yum Brands Is Firing On All Cylinders

YUM is trading at a somewhat rich valuation level. However, investors should not expect to find this exceptional stock at typical price-to-earnings ratios, between 15 and 20. YUM has many growth drivers in place, such as a rising store count, high growth of same-store sales and share repurchases.

Shareholder Returns

YUMUS HospitalityUS Market
7D-2.3%3.2%-0.5%
1Y36.8%41.0%37.5%

Return vs Industry: YUM matched the US Hospitality industry which returned 37.4% over the past year.

Return vs Market: YUM matched the US Market which returned 36.2% over the past year.

Price Volatility

Is YUM's price volatile compared to industry and market?
YUM volatility
YUM Beta1.03
Industry Beta1.72
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
199738,000David Gibbshttps://www.yum.com

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 Taco Bell Division, and the Habit Burger Grill Division.

Yum! Brands Fundamentals Summary

How do Yum! Brands's earnings and revenue compare to its market cap?
YUM fundamental statistics
Market CapUS$37.12b
Earnings (TTM)US$1.33b
Revenue (TTM)US$6.28b

27.7x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
YUM income statement (TTM)
RevenueUS$6.28b
Cost of RevenueUS$3.22b
Gross ProfitUS$3.06b
ExpensesUS$1.73b
EarningsUS$1.33b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)4.43
Gross Margin48.73%
Net Profit Margin21.21%
Debt/Equity Ratio-135.8%

How did YUM perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

44%

Payout Ratio

Valuation

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

27.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: YUM ($124.98) is trading above our estimate of fair value ($108.65)

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


Price To Earnings Ratio

PE vs Industry: YUM is poor value based on its PE Ratio (27.7x) compared to the US Hospitality industry average (24.7x).

PE vs Market: YUM is poor value based on its PE Ratio (27.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: YUM is poor value based on its PEG Ratio (5x)


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.


Future Growth

How is Yum! Brands forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YUM's forecast earnings growth (5.5% per year) is above the savings rate (2%).

Earnings vs Market: YUM's earnings (5.5% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: YUM's revenue (6.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: YUM's revenue (6.6% 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


Past Performance

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

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YUM has high quality earnings.

Growing Profit Margin: YUM's current net profit margins (21.2%) are higher than last year (18.8%).


Past Earnings Growth Analysis

Earnings Trend: YUM's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: YUM's earnings growth over the past year (29.1%) exceeds its 5-year average (2.7% per year).

Earnings vs Industry: YUM earnings growth over the past year (29.1%) underperformed the Hospitality industry 80.8%.


Return on Equity

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


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 (16%).

Interest Coverage: YUM's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: YUM's dividend (1.6%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: YUM's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (44.4%), 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 (42.8% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

David Gibbs (58 yo)

1.67yrs

Tenure

US$14,631,451

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 ($USD14.63M) is about average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: YUM's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: YUM's board of directors are considered experienced (4 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 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$37.118b
  • Shares outstanding: 295.65m
  • Website: https://www.yum.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:57
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
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.