# Yum! Brands Inc. (YUM) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/YUM/thesis · /stocks/YUM/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/YUM/fundamental

## Navigation

- Overview: /stocks/YUM
- Financials (this page): /stocks/YUM/financials
- Thesis: /stocks/YUM/thesis
- Investment Memo: /stocks/YUM/memo
- Coverage universe: /stocks