YUMYUM
US • —
$159.86
P/E
25.80
PEG
1.08
FCF Yield
—
Rev Growth YoY
+9.7% YoY
Gross Margin
45.7%
Health Score
4/10
D/E Ratio
4.31
Confidence
MEDIUM
Business Snapshot
Yum! Brands operates as a quick-service restaurant company, generating revenue primarily through franchise fees, royalties, and sales from its KFC, Taco Bell, and Pizza Hut chains. The company operates in the global fast-food industry, holding a dominant position as one of the world's largest restaurant operators by system sales. Its defining characteristic is an asset-light, highly franchised business model that generates stable, high-margin royalty income with lower capital requirements than company-operated peers.
Financial Health
Gross margin stands at 45.7%, and net margin is 20.5%, indicating strong profitability on revenue. The balance sheet is highly stretched, with a debt-to-equity ratio of 4.31x, though a current ratio of 1.35x provides adequate short-term liquidity...
Risk Assessment
- DEBT/LIQUIDITY — Debt/equity of 4.31x indicates a highly leveraged capital structure that could strain the balance sheet during an economic downturn.
- VALUATION — Price/Book of 34.95x is extremely high, reflecting minimal net tangible asset backing per share and high reliance on intangible brand value.
- EARNINGS QUALITY — Earnings estimates were beaten in only 2 of the last 4 quarters, suggesting that management guidance is not consistently reliable.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER — 4 insider sells versus 0 buys over the last 90 days signals caution among those with the most intimate knowledge of the business....
Gross margin stands at 45.7%, and net margin is 20.5%, indicating strong profitability on revenue. The balance sheet is highly stretched, with a debt-to-equity ratio of 4.31x, though a current ratio of 1.35x provides adequate short-term liquidity. Return on equity is exceptionally high at 117.6%, which is a function of both profitability and high leverage rather than pure operational efficiency. Free cash flow data is unavailable, making it impossible to assess the company's cash generation or its ability to fund dividends, debt payments, or reinvestment without external financing.
- DEBT/LIQUIDITY — Debt/equity of 4.31x indicates a highly leveraged capital structure that could strain the balance sheet during an economic downturn. - VALUATION — Price/Book of 34.95x is extremely high, reflecting minimal net tangible asset backing per share and high reliance on intangible brand value. - EARNINGS QUALITY — Earnings estimates were beaten in only 2 of the last 4 quarters, suggesting that management guidance is not consistently reliable. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER — 4 insider sells versus 0 buys over the last 90 days signals caution among those with the most intimate knowledge of the business.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives