Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Yum Brands Inc

YUM · NYSE · Consumer

Fundamental quality

REASONABLE

72

out of 100

Yum Brands Inc runs like a cash machine: it converts about 19.4% of revenue into free cash flow and holds a 20.5% net margin, though it grows at a measured pace. On fundamental quality it scores 72 out of 100, profiling it as a company of reasonable quality. Its weakest area is its growth (revenue +8.1%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Yum! Brands owns KFC, Taco Bell and Pizza Hut: over 55,000 restaurants worldwide, nearly all franchised. It doesn't sell chicken: it collects royalties on franchisees' sales — a capital-light, high-margin model.

What will shape its future

  • Same-store sales across its brands, with Taco Bell the star and Pizza Hut the laggard.
  • KFC's international expansion, the big opening engine.
  • The franchise model: royalty stability in exchange for depending on franchisees' health.

Breakdown by area

I.Growth
62

EPS growth: 13.3% · Revenue growth: 8.1%

II.Profitability
87

Net margin: 20.5% · ROIC: 53.7%

III.Financial health
66

Net debt/EBITDA: 3.9x · FCF: 19.4%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 95%
Growthbeats 56%
Cash generationbeats 90%
Less debtbeats 12%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Yum Brands Inc strengths

  • Strong free-cash-flow generation (FCF margin of 19.4%): profit turns into real cash.
  • High net margin (20.5%), high even for its sector: the business is clearly profitable.
  • Revenue rising without interruption since 2020.
  • Growing earnings per share (13.3% annualized).

Yum Brands Inc risks and weaknesses

  • High leverage (net debt of 3.9× EBITDA): more exposed to rates and to a rough patch.

Yum Brands Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20205,6529041,14510,005
20216,5841,5751,47610,767
20226,8421,3251,14811,491
20237,0761,5971,31810,686
20247,5491,4861,43210,719
20258,2141,5591,63911,202

Between 2020 and 2025, revenue went from $5,652M to $8,214M (+45%) and net income went from $904M to $1,559M (+72%). Meanwhile, its margins have widened (from 16% to 19%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+15.2%
  • Net income+70.8%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.92

per share, yearly

50.6% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Yum Brands Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Yum Brands Inc a good company to invest in?

In terms of business quality, Yum Brands Inc scores 72 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Yum Brands Inc a profitable company?

Very. Yum Brands Inc shows a net margin of 20.5%, typical of a highly profitable business.

Does Yum Brands Inc have a lot of debt?

Yes, its leverage is high: net debt is 3.9 times its EBITDA.

Is Yum Brands Inc growing?

Its revenue has grown 8.1% annualized in recent years and its earnings per share 13.3%, and without interruption since 2020.

Does Yum Brands Inc generate cash?

Yes. It converts about 19.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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