Yum! Brands Inc.

YUM
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
TTM ROIC
82%
FY2025 · NOPAT / Invested Capital (Equity + Net Debt) · WACC ~8.75% · Moat spread +73pp

Financial Snapshot

ticker: YUM step: 04 generated: 2026-05-12 source: quick-research

Yum! Brands Inc. (YUM) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $6.84B $7.08B $7.55B +6.7%
Gross Margin ~80% ~81% ~82%
Operating Margin ~27% ~29% ~29% flat
Net Income ~$1.2B ~$1.5B ~$1.4B
EPS (diluted) $4.57 $5.59 $5.22 -6.6%

Note: Revenue includes franchise royalties, fees, advertising contributions, and company-owned restaurant sales. High gross margin reflects the asset-light franchise model. 2024 EPS declined modestly despite operating income growth, partly due to higher interest expense on leveraged balance sheet.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$1.6B
Free Cash Flow ~$1.4B
Cash & Equivalents ~$0.5B
Total Debt ~$11.5B
Equity Negative (leveraged recapitalization model)

Note: Yum! has negative book equity due to decades of share buybacks and dividends exceeding retained earnings — this is intentional and standard for asset-light franchisors (McDonald's, Domino's use the same structure). Debt is service-covered by $1.4B+ FCF.

Key Ratios (approximate)

  • P/E: ~22x (on trailing) | EV/EBITDA: ~22x | FCF Yield: ~3.8%
  • Dividend Yield: ~2.2% | Net Profit Margin: ~18%
  • Trailing EPS (early 2026): ~$6.25 (per available data)

Growth Profile

Revenue grew at 3–7% annually from 2022–2025, driven by net new unit openings (4,500+ per year), same-store sales growth, and digital channel mix shift. Taco Bell U.S. has been the standout performer — SSS of +5% in Q4 2024 and +9% in Q1 2025, significantly outpacing the QSR industry. KFC International continues to add 2,000+ net new units per year. Pizza Hut U.S. is the laggard and subject to ongoing strategic review (potential closure of 250 underperforming U.S. locations in H1 2026).

Forward Estimates

  • FY2025 Revenue: ~$8.2B (+9%); reported adj. EPS trending toward ~$6.25
  • FY2026E: Core Operating Profit growth target ~8–10%; EPS ~$6.70–$7.00
  • Net new unit openings: ~4,500/year guidance

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $YUM.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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