Yum! Brands, Inc. (YUM)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a patient investor, I start with what I understand: Yum! Brands sells chicken, Mexican food, pizza, and burgers through KFC, Taco Bell, Pizza Hut, and Habit Burger, with a franchise model that can earn royalties without owning every restaurant. That model has produced a 22.69% return on capital employed, according to FairStock, and $1.7B of trailing free cash flow—real cash, not merely accounting profit. Revenue was $8.2B in fiscal 2025, the year ended 2025-12-31, up from $7.5B in fiscal 2024, the year ended 2024-12-31, and net income rose to $1.6B from $1.5B. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.2B and net income was $853.0M, or $3.08 per diluted share, versus $1.9B, $374.0M, and $1.33 in the comparable fiscal Q2 2025 quarter ended 2025-06-30. That is rapid profit growth, though one quarter can flatter. The balance sheet metrics are mixed. FairStock's Piotroski score is 6/9, and the Altman Z-score of 0.69 is weak by that measure. Still, the business generates cash and pays a 2.04% dividend. Valuation is not demanding: at the 2026-10-13 close of $147.06, the P/E is 18.52, FCF yield is 4.2%, and EV/EBITDA is 17.56. PEG of 0.14 reflects the latest profit spurt. I would want durable revenue and profit growth and consistent cash returns. Price seems fair, not a bargain.

In plain English: Yum! Brands runs big fast-food chains like KFC, Taco Bell, Pizza Hut, and Habit Burger, mostly through franchisees. The business looks strong in recent quarters: sales and profits rose, and it produces plenty of cash. At the recent price of $147.06, the shares look fairly priced rather than clearly cheap or expensive based on the company's numbers.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer