YUM BRANDS INC (YUM) Stock Analysis

Analysis from 10-Q filed 2025-11-07. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 49.3%. FCF margin 19.3%. D/E -2.1x. Source: 10-Q filed 2025-11-07.

Metric	Value	Context
ROIC	49.3%	Above industry average
FCF Margin	19.3%	Strong cash generation
Debt/Equity	-2.1x	Conservative leverage

ROIC 49.3% — Top 5% of sector peers. FCF margin 19.3% — Top 5%.

Explore YUM BRANDS INC: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for YUM: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: YUM BRANDS INC earns 49.3% ROIC, Top 5% in Consumer Discretionary

ROIC TTM 49.3%, sector median 7.1%, Top 5%. DuPont: NOPAT margin 31.3% × asset turnover 1.1x. Gross margin 68.1%. Operating margin 31.0%. Source: 10-Q filed 2025-11-07.

Metric	YUM	Rating	Context
Return on Invested Capital (ROIC)	49.3%	Excellent	Above sector median of 7.1%
Return on Equity (ROE)	-30.1%	Red flag	Moderate equity returns
Gross Margin	68.1%	Excellent	Strong pricing power
Operating Margin	31.0%	Excellent	Efficient operations

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Cash Flow: YUM BRANDS INC generates $1.7B FCF at 19.3% margin, positive NaN/8 quarters

FCF TTM $1.7B. FCF margin 19.3%, Top 5%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-07.

Metric	YUM	Rating	Context
Free Cash Flow Margin	19.3%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$1.7B	Good	Positive cash generation
OCF/Net Income	0.9x	Good	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: YUM BRANDS INC at -2.1x leverage

Debt/Equity -2.1x. Total debt $15.1B, cash & investments $674.0M. Source: 10-Q filed 2025-11-07.

Metric	YUM	Rating	Context
Debt to Equity	-2.1x	Excellent	Conservative capital structure
Net Cash Position	$-14.4B	Warning	Net debt position

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Valuation: YUM BRANDS INC trades at 20.0x earnings

P/E 20.0x. EV/Sales 6.2x. FCF yield 3.8%. Dividend yield 1.8%. Source: 10-Q filed 2025-11-07.

Metric	YUM	Rating	Context
P/E Ratio	20.0x	Adequate	Reasonable valuation
EV/Sales	6.2x	Adequate	Growth premium priced in
FCF Yield	3.8%	Adequate	Lower cash yield
Dividend Yield	1.8%	Adequate	Growth focus over income

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Capital Allocation: YUM BRANDS INC returns 3.8% shareholder yield

Total shareholder yield 3.8% (div 1.8% + buyback 2.0%). Capital returned $1.7B TTM. Source: 10-Q filed 2025-11-07.

Metric	YUM	Rating	Context
Total Shareholder Yield	3.8%	Good	Dividend + buyback yield combined
Buyback Yield	2.0%	Adequate	Active share repurchases
Total Capital Returned (TTM)	$1.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	49.3%	Top 5%	7.0x above
Free Cash Flow Margin	19.3%	Top 5%	7.6x above
Gross Margin	68.1%	Top 25%	1.8x above
Operating Margin	31.0%	Top 5%	7.4x above
Return on Equity (ROE)	-30.1%	Top 5%	-2.5x below
P/E Ratio	20.0x	N/A	-

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Financial Scorecard

Metric	YUM	Rating	Sector Context
Return on Invested Capital (ROIC)	49.3%	Excellent	Top 5% of sector (median: 7.1%)
Free Cash Flow Margin	19.3%	Good	Top 5% of sector (median: 2.5%)
Gross Margin	68.1%	Excellent	Top 25% of sector (median: 38.5%)
Debt to Equity Ratio	-212.4%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	20.0x	Adequate	Fair value
Free Cash Flow Yield	3.8%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is YUM BRANDS INC's Return on Invested Capital (ROIC)?

YUM BRANDS INC (YUM) has a trailing twelve-month Return on Invested Capital (ROIC) of 49.3%. Sector median 7.1%. Source: 10-Q filed 2025-11-07.

Q: What is YUM BRANDS INC's Free Cash Flow Margin?

YUM BRANDS INC (YUM) has a free cash flow margin of 19.3%, generating $1.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-07.

Q: What is YUM BRANDS INC's P/E ratio and how does it compare to peers?

YUM BRANDS INC (YUM) trades at a P/E ratio of 20.0x, which is above the sector median of N/A. EV/Sales 6.2x. FCF yield 3.8%. Source: 10-Q filed 2025-11-07.

Q: Does YUM BRANDS INC pay a dividend?

YUM BRANDS INC (YUM) currently pays a dividend yield of 1.8%. Total shareholder yield (dividend + buybacks) 3.8%. Source: 10-Q filed 2025-11-07.

Q: What is YUM BRANDS INC's revenue and earnings growth?

YUM BRANDS INC (YUM) grew revenue by 10.3% year-over-year. EPS +56.9% YoY. Source: 10-Q filed 2025-11-07.

Q: Is YUM BRANDS INC buying back stock?

YUM BRANDS INC (YUM) repurchased $888.0 million of stock over the trailing twelve months. This represents a buyback yield of 2.0%. Source: 10-Q filed 2025-11-07.

Q: How does YUM BRANDS INC compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, YUM BRANDS INC (YUM) shows: ROIC 49.3%, sector median 7.1% (Top 5%). FCF margin 19.3%, sector median 2.5% (Top 5%). Gross margin 68.1%, 29.7pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with YUM BRANDS INC?

Quantitative warning flags for YUM BRANDS INC (YUM): 1) ROIC declining -4.9% over 8 quarters. Source: 10-Q filed 2025-11-07.

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Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.