Consumer Discretionary · Restaurants · US stock · price as of 16 Oct 2026
Key indicators
Price
$150.51
52-week range
$134.26 – $169.29
Market cap
$41.7B
P/E (trailing)
19.0×
EV / EBITDA
19.1×
Free-cash-flow yield
4.0%
Dividend yield
2.0%
Revenue (last 12 months)
$8.7B
Revenue growth (3y a year)
6.3%
Operating margin
31.0%
Return on invested capital
33.2%
Net debt / EBITDA
4.9×
Fair value
Blended fair value$164.95 range $151 – $183
Versus priceFair+10% to fair value
Peer multiples
$134.19
Fundamentals-adjusted multiple
$174.34
10-year DCF (market-scaled)
$186.34
Earnings power value (floor, not blended)
$54.22
Model uncertainty
Medium
X-Ray Score
47/ 100 · High confidence · ahead of 36% of sector peers
Valuation37
Growth55
Profitability66
Financial health27
Dividends54
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Yum Brands is a restaurant company whose brands include KFC and Taco Bell, alongside other quick-service chains. Most of its restaurants are run by independent franchisees, who operate them under the Yum brand names and pay the company royalties. The company sets menus and brand standards and supports marketing and supply, and its restaurants serve customers across many countries.
Revenue comes mostly from franchise royalties and fees calculated on franchisees' restaurant sales, together with income from the smaller number of company-operated restaurants. Revenue was $8.7 billion over the last twelve months, with growth of 6.3% a year across the last three years. The operating margin is 31.0%, and the business earns a profit of 33% on the capital invested in it. Net debt is 4.9 times EBITDA. It pays a dividend with a yield of 2.0%.
StocksXray gives Yum Brands Inc an X-Ray Score of 47 out of 100 (high confidence), ahead of 36% of the S&P 500 stocks in its sector. Its strongest lens is profitability (66) and its weakest is financial health (27).
Our fair value blend is $164.95 (range $151.36 to $183.27). At $150.51 the stock trades 9% below that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Yum Brands Inc (YUM)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$126.76
$119.17
$123.86
$129.70
$149.10
$150.51
Market cap
$38.3B
$34.6B
$35.3B
$37.0B
$41.9B
$41.7B
P/E
24.3×
26.1×
22.2×
24.8×
26.9×
19.0×
EV / revenue
7.5×
6.8×
6.5×
6.3×
6.5×
6.4×
EV / EBITDA
21.3×
19.9×
18.6×
18.5×
19.1×
19.1×
Price / free cash flow
25.9×
30.1×
26.8×
25.8×
25.6×
24.8×
Free-cash-flow yield
3.9%
3.3%
3.7%
3.9%
3.9%
4.0%
Price / book
–
–
–
–
–
–
Dividend yield
1.58%
1.91%
1.95%
2.07%
1.90%
1.97%
Fundamentals checklist ● 3 Good · ● 8 Average · ● 5 Bad · each check graded against the sector
Cash quality
Earnings backed by cash1.5%Bad
Free-cash-flow yield4.0%Average
Risk models
Altman Z score-2.3×Bad
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)6.7%Average
Free-cash-flow growth (3y)12.6%Average
Revenue growth (3y)6.3%Average
Growth consistency90%Average
Balance sheet
Current ratio0.6×Bad
Net debt / EBITDA4.9×Bad
Interest coverno interest costGood
Valuation
Fair value vs price1.1×Average
EBIT / EV yield4.8%Average
Profitability
Return on invested capital33.2%Average
Operating margin31.0%Good
Gross profitability68.5%Good
Red flags
Negative equity — Book equity is negative
XStocksXray
Yum Brands Inc (YUM)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
6,584
6,842
7,076
7,549
8,214
8,722
Gross profit
4,859
5,097
5,302
5,429
5,731
5,943
Operating income
2,139
2,187
2,318
2,403
2,574
2,703
Net income
1,575
1,325
1,597
1,486
1,559
2,217
Diluted EPS ($)
5.21
4.57
5.59
5.22
5.55
7.93
Free cash flow
1,476
1,148
1,318
1,432
1,639
1,679
Gross margin
73.8%
74.5%
74.9%
71.9%
69.8%
68.1%
Operating margin
32.5%
32.0%
32.8%
31.8%
31.3%
31.0%
Net margin
23.9%
19.4%
22.6%
19.7%
19.0%
25.4%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
5,966
5,846
6,231
6,727
8,197
8,682
Cash
486
367
512
616
709
674
Total debt
11,321
12,256
11,251
11,362
11,949
15,098
Equity
-8,373
-8,876
-7,858
-7,648
-7,325
-7,107
Dividend per share ($)
2.00
2.28
2.42
2.68
2.84
2.92
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.