Yum! Brands YUM
Yum! Brands is a quick-service restaurant company that operates and franchises global brands such as KFC, Taco Bell, and Pizza Hut, generating revenue primarily through royalties and franchise fees. Yum! Brands shows earnings growth of 131.6% and an operating margin of 32.78%, but its financial health is weighed down by net debt of 4.15x EBITDA and a weak free cash flow conversion of 27.16%.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Yum! Brands is a quick-service restaurant company that operates and franchises global brands such as KFC, Taco Bell, and Pizza Hut, generating revenue primarily through royalties and franchise fees. Yum! Brands shows earnings growth of 131.6% and an operating margin of 32.78%, but its financial health is weighed down by net debt of 4.15x EBITDA and a weak free cash flow conversion of 27.16%.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.3 |
| Quality / Moat | 5.3 |
| Valuation | 5.7 |
| Growth | 8.6 |
| Dividend | 6.7 |
| Momentum | 5.1 |
| Risk & Context | 8.3 |
OVERALL SCORE: 6.2/10
Context and risks
No material exposure to the macro factors described. The quick-service restaurant business is defensive and does not depend on commodities, interest rates, or specific geopolitical risks.
News considered in the analysis
- What Could Yum! Brands (YUM) Gain From KFC Open House In Texas? — Iniciativa promocional de KFC que podría impulsar el tráfico a corto plazo, pero con impacto incierto en los beneficios.
- Yum! Brands (YUM) Stock Trades At A Discount On Its 23% Five Year Return — Artículo de opinión sobre la rentabilidad pasada de la acción, sin información nueva sobre el negocio.
- Why Did Chipotle Mexican Grill (CMG) Add A Global Restaurant Veteran To Its Board? — Noticia sobre un competidor (CMG), sin impacto directo en Yum! Brands.
- Yum! Brands (YUM) vs Restaurant Brands International (QSR): Which is a Better Stock to Buy? — Comparativa genérica entre dos empresas, sin información específica que afecte a YUM.
- How Much Should One Number Worry Starbucks Shareholders? — Noticia sobre Starbucks, un competidor indirecto, sin impacto directo en Yum! Brands.
Verdict: Hold; valuation is reasonable but leverage and low free cash flow conversion limit near-term appeal.
Main risk: The high leverage (Net Debt/EBITDA of 4.15) is the biggest risk, as it limits financial flexibility and could be a drag if interest rates remain high.
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