Yum! Brands, Inc.YUM
NYSE • Consumer Cyclical
$150.85
P/E
24.14
PEG
0.34
FCF Yield
—
Rev Growth YoY
+15.2% YoY
Gross Margin
44.7%
Health Score
6/10
D/E Ratio
-1.63
Confidence
LOW
Business Snapshot
Yum! Brands is a global quick-service restaurant company operating franchise models across brands like KFC, Taco Bell, and Pizza Hut. It holds a leading position as one of the largest franchise operators worldwide in the competitive restaurant industry. The company generates substantial royalty and franchise fee income with limited capital intensity from corporate-owned stores, resulting in high operating margins. A defining characteristic is its highly franchised, asset-light business model that consistently produces strong free cash flow.
Financial Health
Gross margin of 44.7% is slightly improved from 44.5% a year ago, while net margin of 20.5% reflects efficient operations. Debt/equity of -1.63x is a red flag, as negative equity indicates liabilities exceed assets, though the current ratio of 1.35x suggests adequate short-term liquidity...
Risk Assessment
- DEBT — Debt/equity of -1.63x indicates negative equity, a significant red flag for financial stability.
- REVENUE DECELERATION — Revenue declined 18.1% quarter-over-quarter against a 15.2% year-over-year gain, signaling a near-term pullback.
- 52-WEEK POSITION — Current price of $150.85 is 11% below the 52-week high of $169.39, showing downside from recent peaks.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — Only 2 of 4 recent quarters beat estimates, pointing to mixed management guidance credibility....