Yum Brands Inc

Consumer Discretionary
Restaurants
www.yum.com

Earnings Score
Safety Score

Market Cap $38.81B
Debt $11.20B
Cash $627.00M
EV $49.37B
FCF $1.37B

Earnings

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Sales & Net Margins

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Earnings	$1.53B
EBIT	$2.46B
ROA	38%
FCF	$1.37B
Equity	-$7.67B
Growth Stability	65%
PE	25.43
PEG	3.1
PB	-5.06
P/FCF	28.39
P/S	5.37
Price/Cash	0.02
Debt/Equity	-1.46
Debt/FCF	8.19
Net Margins	20%
Gross Margins	73%
Op. Margins	34%
Earnings CAGR	8%
Sales Growth YoY	7%
Sales Growth QoQ	4%
Sales CAGR	2%
FCF CAGR	7%
Equity CAGR	-0%
Earnings Stability	0.16
Earnings Growth YoY	-8%

Earnings Growth QoQ	4%
Earnings CAGR 5Y	8%
Sales CAGR 5Y	6%
FCF CAGR 5Y	4%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	1%
Market Cap	$38.81B
Revenue	$7.22B
Dividend Yield	2%
Payout Ratio	48%
Assets	$6.46B
Total Debt	$11.20B
Cash	$627.00M
Shares Outstanding	281.96M
EV	49.37B
Earnings Score	9%
Safety Score	45%
Working Capital	439M
Current Ratio	1.37
Gross Profit	$5.30B
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	-6%

Assets & ROA

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Stockholders Equity & ROE

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Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (26,930 global units), Pizza Hut (18,380 units), Taco Bell (7,790 units), and The Habit Burger (310 units) at year-end 2021. With $58 billion in 2021 systemwide sales, the firm is the second-largest restaurant company in the world, behind McDonald's ($112 billion) but ahead of Restaurant Brands International ($35 billion) and Starbucks ($25 billion). Yum is 98% franchised, with the largest franchisee, Yum China, created via a 2016 spinoff transaction (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon Brands, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.

SEC Filings

Direct access to Yum Brands Inc (YUM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Yum Brands Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Yum Brands Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 16%

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Yum Brands Inc Discounted Cash Flow

Fully customizable DCF calculator online for Yum Brands Inc.

Years

Calculation mode

= $22B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.4B	$1.5B	$1.6B	$1.7B	$1.8B	$1.9B	$2B	$2.2B	$2.3B	$2.5B	$2.7B	$27B
DCF		$1.3B	$1.3B	$1.3B	$1.2B	$1.2B	$1.2B	$1.1B	$1.1B	$1.1B	$1B	$10B
Value	$22B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	8%	10%	25%	23%	27%	23%	16%	24%	19%	23%	20%
ROA	-	24%	30%	52%	57%	37%	27%	37%	38%	39%	38%
ROE	-	133%	-29%	-21%	-19%	-16%	-11%	-19%	-15%	-20%	-

Good Net Margins (20.49%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.06	-	-	11.07	9.84	9.79	7.69	10.76	8.59	8.19
Debt over Equity	2.16	4.88	-1.63	-1.61	-1.32	-1.37	-1.42	-1.36	-1.39	-1.44	-1.46
Growth Stability	-	-	-	100%	100%	86%	65%	100%	100%	100%	65%

Bad Debt/FCF ratio (8.19)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (-1.46)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (65%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-1%	-51%	-8%	-3%	-2%	1%	16%	4%	3%	6%
Earnings YoY growth	-	27%	25%	-17%	15%	-16%	-30%	74%	-16%	21%	8%
Equity YoY growth	-	-40%	-679%	13%	25%	1%	-2%	6%	6%	-11%	-
FCF YoY growth	-	15%	-	-	32%	19%	2%	29%	-22%	15%	4%