NYSE:YUM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.


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


Market Performance


7 Day Return

-2.9%

NYSE:YUM

-2.1%

US Hospitality

-1.0%

US Market


1 Year Return

38.0%

NYSE:YUM

-6.5%

US Hospitality

-0.4%

US Market

YUM outperformed the Hospitality industry which returned -6.5% over the past year.

YUM outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

YUMIndustryMarket
7 Day-2.9%-2.1%-1.0%
30 Day2.3%-5.4%-3.3%
90 Day14.1%-3.4%0.8%
1 Year40.2%38.0%-4.3%-6.5%1.9%-0.4%
3 Year89.8%29.5%40.2%31.3%39.4%30.4%
5 Year145.0%59.7%30.9%16.6%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

26.9x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

YUM! Brands's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

YUM! Brands's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

YUM! Brands is overvalued based on earnings compared to the US Hospitality industry average.

YUM! Brands is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

YUM! Brands is poor value based on expected growth next year.


Price Based on Value of Assets

YUM! Brands has negative assets, we can't compare the value of its assets to the US Hospitality industry average.


Next Steps

Future Growth

How is YUM! Brands expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

YUM! Brands's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

YUM! Brands's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

YUM! Brands's revenue growth is positive but not above the United States of America market average.

YUM! Brands's earnings growth is positive but not above the United States of America market average.

YUM! Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if YUM! Brands will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

YUM! Brands's year on year earnings growth rate has been positive over the past 5 years.

YUM! Brands's 1-year earnings growth is negative, it can't be compared to the 5-year average.

YUM! Brands's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.


Return on Equity

It is difficult to establish if YUM! Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

YUM! Brands used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

YUM! Brands has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is YUM! Brands's financial position?


Financial Position Analysis

YUM! Brands's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

YUM! Brands's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

YUM! Brands has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if YUM! Brands's debt level has increased considering it has negative shareholder equity.

Debt is not well covered by operating cash flow (12.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).


Balance Sheet

High level of physical assets or inventory.

YUM! Brands has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

1.58%

Expected Dividend Yield


Dividend Yield and Payments Analysis

YUM! Brands's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

YUM! Brands's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

What is the CEO of YUM! Brands's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Greg Creed (61yo)

4.6yrs

Tenure

US$14,007,038

Compensation

Mr. Greg Creed has been the Chief Executive Officer of Yum! Brands, Inc. since January 1, 2015. Mr. Creed served as the Chief Executive Officer of Taco Bell U. S., at Yum! Brands, Inc. from February 2011 t ...


CEO Compensation Analysis

Greg's remuneration is about average for companies of similar size in United States of America.

Greg's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

47.5yo

Average Age

The tenure for the YUM! Brands management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

60.5yo

Average Age

The tenure for the YUM! Brands board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$249,88811 Feb 19
Tanya Domier
EntityIndividual
Shares2,652
Max PriceUS$94.23
SellUS$1,042,27908 Feb 19
David Gibbs
EntityIndividual
Role
President & COO
Shares11,081
Max PriceUS$94.06
SellUS$92,65004 Dec 18
Tracy Skeans
EntityIndividual
Role
Chief Transformation & People Officer
Shares1,045
Max PriceUS$88.66

Ownership Breakdown


Management Team

  • Scott Catlett (42yo)

    General Counsel & Corporate Secretary

    • Tenure: 1.1yrs
  • Roger Eaton (58yo)

    Executive Officer

    • Tenure: 0.6yrs
    • Compensation: $4.53m
  • Kevin Hochman

    Chief Concept Officer & President of KFC -US

  • Virginia Ferguson

    Senior Director of Public Relations

  • Tracy Skeans (46yo)

    Chief Transformation & People Officer

    • Tenure: 3.6yrs
    • Compensation: $4.07m
  • Chris Turner (44yo)

    Chief Financial Officer

  • Keith Siegner (44yo)

    VP of Investor Relations & Corporate Strategy and Treasurer

    • Tenure: 3.1yrs
  • David Gibbs (56yo)

    President & COO

    • Tenure: 3.3yrs
    • Compensation: $7.00m
  • Greg Creed (61yo)

    CEO & Non-Independent Director

    • Tenure: 4.6yrs
    • Compensation: $14.01m
  • Dave Russell (49yo)

    Senior VP of Finance & Corporate Controller

    • Tenure: 8.5yrs
    • Compensation: $1.40m

Board Members

  • Chris Connor (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $240.00k
  • Bob Walter (73yo)

    Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: $405.00k
  • Paget Alves (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: $240.00k
  • Mirian Graddick-Weir (64yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: $240.00k
  • Mike Cavanagh (53yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: $240.00k
  • Elane Stock (54yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: $240.00k
  • Tom Nelson (57yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: $265.00k
  • Brian Cornell (60yo)

    Non-Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: $260.00k
  • P. Skala (59yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: $240.00k
  • Greg Creed (61yo)

    CEO & Non-Independent Director

    • Tenure: 4.8yrs
    • Compensation: $14.01m

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$35.182b
  • Shares outstanding: 304.29m
  • Website: Click here

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
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 T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:54
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.