Yum Brands Inc
YUM—
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Yum Brands Inc AI Insights
Informational only. Not investment advice.Snapshot
- Negative equity of -7.5B with 11.6B debt - franchise model extracts capital via leveraged buybacks, not a distress signal[Total Equity]
- Operating margin 30.8% TTM vs industry median 5.1% - 6x advantage from asset-light franchise royalties[Operating Margin]
- FCF of 1.6B TTM on 7.2B assets = 22% return on assets, funding 2.8 dividend + buybacks despite negative equity[Free Cash Flow]
Watch Triggers
- Interest Expense: Rises above 600M annually (>22% of EBITDA) — Would compress FCF available for dividends and signal refinancing stress
- Operating Margin: Falls below 28% — Franchise economics deteriorating or royalty rate pressure from franchisees
- Free Cash Flow: Drops below 1.2B TTM — Would threaten dividend coverage and force leverage reduction
Bull Case
Asset-light model converts 19% of revenue to FCF (1.6B/8.1B) with capex under 5% of revenue - peers at 6% FCF margin median
Free Cash FlowCapital ExpenditureOperating Margin
Global brand portfolio (KFC, Taco Bell, Pizza Hut) generates 8B revenue with only 7.2B total assets - 1.2x asset turnover vs 0.9x median
Asset TurnoverTotal RevenueTotal Assets
Bear Case
Debt/EBITDA of 4.3x (11.6B/2.7B) with negative equity leaves zero margin for earnings decline - refinancing risk if rates stay elevated
Total DebtEBITDAInterest Expense
P/S of 5.0x vs industry median 0.9x prices in franchise premium - multiple compression risk if unit growth slows
P/S RatioP/E Ratio
Bull vs Bear Balance
AI-generated sentiment analysis based on fundamental metrics and market conditions.
55%
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Forward Thesis
Franchise royalty stream supports 4-5% annual dividend growth despite elevated leverage
1-3yhigh
- 98%+ franchised units generate predictable 5-6% royalty fees
- Minimal capex (342M TTM) preserves FCF for shareholder returns
- Interest coverage of 5x EBITDA provides debt service cushion
FCF 1.6B vs dividends ~800M = 2x coverageEBITDA 2.7B vs interest 499M = 5.4xDividend 2.80/share on 5.07 EPS = 55% payout
Valuation Context
Caveats
YUM Fundamentals
Accommodation and Food Services → Food Services and Drinking Places
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$42.53B | — | ||
$53.8B | — | ||
25 | — | ||
$8.49B | +9.7% | — | |
$6.20 | +23.4% | — | |
30.6% | -0.8% | — | |
20.5% | +2.1% | — | |
$1.65B | +13.5% | — | |
0% | — | ||
Beta 5Y (Monthly) | unknown | — |
YUM Dividend History
88 dividends
2026
$1.500005/27/26$0.7500
02/20/26$0.7500
2025
$2.840012/02/25$0.7100
09/02/25$0.7100
05/27/25$0.7100
02/21/25$0.7100
2024
$2.680012/02/24$0.6700
08/27/24$0.6700
05/24/24$0.6700
02/20/24$0.6700
2023
$2.420011/27/23$0.6050
08/28/23$0.6050
05/26/23$0.6050
02/21/23$0.6050
2022
$2.280011/23/22$0.5700
08/26/22$0.5700
05/26/22$0.5700
02/17/22$0.5700
2021
$2.000011/24/21$0.5000
08/26/21$0.5000
05/27/21$0.5000
02/11/21$0.5000
2020
$1.880011/24/20$0.4700
08/25/20$0.4700
05/28/20$0.4700
02/13/20$0.4700
2019
$1.680011/20/19$0.4200
08/16/19$0.4200
05/15/19$0.4200
02/13/19$0.4200
2018
$1.440011/23/18$0.3600
08/17/18$0.3600
05/15/18$0.3600
02/13/18$0.3600
2017
$1.200011/14/17$0.3000
07/12/17$0.3000
04/11/17$0.3000
01/11/17$0.3000
2016
$1.890010/17/16$0.5100
07/13/16$0.4600
04/13/16$0.4600
01/13/16$0.4600
2015
$1.690010/14/15$0.4600
07/15/15$0.4100
04/08/15$0.4100
01/14/15$0.4100
2014
$1.520010/15/14$0.4100
07/09/14$0.3700
04/09/14$0.3700
01/15/14$0.3700
2013
$1.375010/09/13$0.3700
07/10/13$0.3350
04/10/13$0.3350
01/09/13$0.3350
2012
$1.190010/10/12$0.3350
07/11/12$0.2850
04/11/12$0.2850
01/11/12$0.2850
2011
$1.035010/12/11$0.2850
07/13/11$0.2500
04/13/11$0.2500
01/12/11$0.2500
2010
$0.880010/13/10$0.2500
07/14/10$0.2100
04/14/10$0.2100
01/13/10$0.2100
2009
$0.780010/14/09$0.2100
07/15/09$0.1900
04/07/09$0.1900
01/14/09$0.1900
2008
$0.680010/15/08$0.1900
07/09/08$0.1900
04/09/08$0.1500
01/09/08$0.1500
2007
$0.525010/10/07$0.1500
07/11/07$0.1500
03/07/07$0.1500
01/10/07$0.0750
2006
$0.265010/11/06$0.0750
07/12/06$0.0750
04/11/06$0.0575
01/11/06$0.0575
2005
$0.215010/12/05$0.0575
07/13/05$0.0575
04/13/05$0.0500
01/12/05$0.0500
2004
$0.100010/13/04$0.0500
07/14/04$0.0500
YUM Stock Splits
2 stock splits
06/27/070.5:1 split
06/18/021:2 split
YUM SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
05/06/26 | 03/31/26 | 10-Q | |
02/20/26 | 12/31/25 | 10-K | |
11/07/25 | 09/30/25 | 10-Q | |
08/07/25 | 06/30/25 | 10-Q | |
05/07/25 | 03/31/25 | 10-Q | |
02/19/25 | 12/31/24 | Unknown | |
11/07/24 | 09/30/24 | 10-Q | |
08/08/24 | 06/30/24 | 10-Q | |
05/07/24 | 03/31/24 | 10-Q | |
02/20/24 | 12/31/23 | 10-K | |
11/07/23 | 09/30/23 | 10-Q | |
08/07/23 | 06/30/23 | 10-Q | |
05/09/23 | 03/31/23 | 10-Q | |
02/27/23 | 12/31/22 | 10-K | |
11/08/22 | 09/30/22 | 10-Q | |
08/08/22 | 06/30/22 | 10-Q | |
05/10/22 | 03/31/22 | 10-Q | |
02/23/22 | 12/31/21 | 10-K | |
11/03/21 | 09/30/21 | 10-Q | |
08/05/21 | 06/30/21 | 10-Q | |
05/05/21 | 03/31/21 | 10-Q | |
02/22/21 | 12/31/20 | 10-K | |
11/05/20 | 09/30/20 | 10-Q | |
08/05/20 | 06/30/20 | 10-Q | |
05/06/20 | 03/31/20 | 10-Q | |
02/20/20 | 12/31/19 | 10-K | |
11/05/19 | 09/30/19 | 10-Q | |
08/09/19 | 06/30/19 | 10-Q | |
05/08/19 | 03/31/19 | 10-Q | |
02/21/19 | 12/31/18 | 10-K | |
11/07/18 | 09/30/18 | 10-Q | |
08/07/18 | 06/30/18 | 10-Q | |
05/09/18 | 03/31/18 | 10-Q | |
02/22/18 | 12/31/17 | 10-K | |
11/08/17 | 09/30/17 | 10-Q | |
08/08/17 | 06/30/17 | 10-Q | |
05/10/17 | 03/31/17 | 10-Q | |
02/22/17 | 12/31/16 | 10-K | |
10/11/16 | 09/03/16 | 10-Q | |
07/19/16 | 06/11/16 | 10-Q | |
04/26/16 | 03/19/16 | 10-Q | |
02/16/16 | 12/26/15 | 10-K | |
10/15/15 | 09/05/15 | 10-Q | |
07/21/15 | 06/13/15 | 10-Q | |
04/27/15 | 03/21/15 | 10-Q | |
02/17/15 | 12/27/14 | 10-K | |
10/14/14 | 09/06/14 | 10-Q | |
07/22/14 | 06/14/14 | 10-Q | |
04/28/14 | 03/22/14 | 10-Q | |
02/18/14 | 12/28/13 | 10-K | |
10/15/13 | 09/16/13 | 10-Q | |
07/16/13 | 06/15/13 | 10-Q | |
04/29/13 | 03/23/13 | 10-Q | |
02/20/13 | 12/29/12 | 10-K | |
10/16/12 | 09/08/12 | 10-Q | |
07/24/12 | 06/16/12 | 10-Q | |
04/25/12 | 03/24/12 | 10-Q | |
02/21/12 | 12/31/11 | 10-K | |
10/11/11 | 09/03/11 | 10-Q | |
07/19/11 | 06/11/11 | 10-Q | |
04/26/11 | 03/19/11 | 10-Q | |
02/15/11 | 12/25/10 | 10-K | |
10/12/10 | 09/04/10 | 10-Q | |
07/20/10 | 06/12/10 | 10-Q | |
04/21/10 | 03/20/10 | 10-Q | |
02/17/10 | 12/26/09 | 10-K | |
10/13/09 | 09/30/09 | 10-Q | |
07/21/09 | 06/30/09 | 10-Q | |
04/28/09 | 03/21/09 | 10-Q | |
02/23/09 | 12/31/08 | 10-K | |
09/30/08 | 09/30/08 | Unknown | -- |
06/30/08 | 06/30/08 | Unknown | -- |
04/29/08 | 03/30/08 | Unknown | -- |
12/31/07 | 12/31/07 | 11-K | |
09/30/07 | 09/30/07 | Unknown | -- |
07/20/07 | 06/30/07 | Unknown | -- |
03/31/07 | 03/30/07 | Unknown | -- |
02/28/07 | 12/31/06 | 10-K | |
09/30/06 | 09/30/06 | Unknown | -- |
06/30/06 | 06/30/06 | Unknown | -- |
03/31/06 | 03/30/06 | Unknown | -- |
12/31/05 | 12/31/05 | Unknown | -- |
09/30/05 | 09/30/05 | 11-K | |
06/30/05 | 06/30/05 | Unknown | -- |
04/25/05 | 03/30/05 | Unknown | -- |
02/28/05 | 12/31/04 | Unknown | -- |
09/30/04 | 09/30/04 | 11-K | |
06/30/04 | 06/30/04 | Unknown | -- |
04/27/04 | 03/30/04 | Unknown | -- |
03/05/04 | 12/31/03 | Unknown | -- |
09/30/03 | 09/30/03 | S-8 | |
06/30/03 | 06/30/03 | Unknown | -- |
05/01/03 | 03/30/03 | Unknown | -- |
03/11/03 | 12/31/02 | Unknown | -- |
09/30/02 | 09/30/02 | 11-K | |
07/29/02 | 06/30/02 | Unknown | -- |
05/03/02 | 03/30/02 | Unknown | -- |
03/11/02 | 12/31/01 | Unknown | -- |
09/30/01 | 09/30/01 | 11-K | |
07/30/01 | 06/30/01 | Unknown | -- |
05/07/01 | 03/30/01 | Unknown | -- |
03/28/01 | 12/31/00 | Unknown | -- |
09/30/00 | 09/30/00 | 8-K | |
06/30/00 | 06/30/00 | Unknown | -- |
05/02/00 | 03/30/00 | Unknown | -- |