NYSE · Consumer Cyclical

Yum! Brands, Inc.

YUM · Restaurants

$154.19

▼ -4.17 (-2.63%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Yum! Brands, Inc. at $154.19.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 46.2%

Operating Margin 30.8%

Net Income Margin 19.0%

Fin. Health D

Years to Pay Off Debt 8.5 yrs

Working Capital vs Long-Term Debt -$11.2B

Working Capital $524M

Valuation A

Price-to-Book -5.81x

Cash Flow B

Free Cash Flow $1.6B

CapEx % of Net Income 23.8%

Owner Earnings $2.1B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $42.6B

Enterprise Value $55.0B

P/E (TTM) 24.83

Dividend Yield 1.84%

Exchange NYSE

Key Margins

Gross Profit 46.2%

Operating Margin 30.8%

Net Margin 19.0%

Company Info

Sector Consumer Cyclical

Industry Restaurants

Employees 49000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Yum! Brands, Inc. at $154.19.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Yum! Brands, Inc.

Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally. The company operates in four segments: KFC Division, Taco Bell Division, Pizza Hut Division, and Habit Burger & Grill Division. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill brands, which specialize in chicken, Mexican-style food and pizza categories, made-to-order chargrilled burgers, sandwiches, and other products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	46.2% ▼	47.5%	49.4%	48.3%	N/A
Operating Margin %	30.8% ▼	31.8%	32.5%	31.7%	N/A
Net Income %	19.0% ▼	19.7%	22.6%	19.4%	N/A
Diluted EPS	5.55 ▲	5.22	5.59	4.57	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$8.2B	$6.7B	$6.2B	$5.8B	N/A
Total Debt	$13.2B ↑	$12.3B	$12.0B	$12.7B	N/A
Working Capital	$524M ▼	$602M	$332M	-$56M	N/A
Years to Pay Debt	8.46	8.27	7.53	9.56	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$1.6B ▲	$1.4B	$1.3B	$1.1B	N/A
Owner Earnings	$2.1B	$1.9B	$2.0B	$1.8B	N/A
CapEx % of Net Income	23.8%	17.3%	17.8%	21.1%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	9,477	-1,307	2,299	7,917
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	2,746,000	2,570,000	2,465,000	2,296,000
Total Unusual Items	38,000	-6,000	19,000	39,000
Total Unusual Items Excluding Goodwill	38,000	-6,000	19,000	39,000
Net Income From Continuing Operation Net Minority Interest	1,559,000	1,486,000	1,597,000	1,325,000
Reconciled Depreciation	206,000	175,000	153,000	146,000
Reconciled Cost Of Revenue	4,422,000	3,965,000	3,580,000	3,535,000
EBITDA	2,784,000	2,564,000	2,484,000	2,335,000
EBIT	2,578,000	2,389,000	2,331,000	2,189,000
Net Interest Income	-501,000	-489,000	-513,000	-527,000
Interest Expense	501,000	489,000	513,000	527,000
Normalized Income	1,530,477	1,490,693	1,580,299	1,293,917
Net Income From Continuing And Discontinued Operation	1,559,000	1,486,000	1,597,000	1,325,000
Total Expenses	5,684,000	5,146,000	4,773,000	4,675,000
Total Operating Income As Reported	2,574,000	2,403,000	2,318,000	2,187,000
Diluted Average Shares	281,000	285,000	285,000	290,000
Basic Average Shares	279,000	282,000	281,000	286,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,559,000	1,486,000	1,597,000	1,325,000
Net Income Common Stockholders	1,559,000	1,486,000	1,597,000	1,325,000
Net Income	1,559,000	1,486,000	1,597,000	1,325,000
Net Income Including Noncontrolling Interests	1,559,000	1,486,000	1,597,000	1,325,000
Net Income Continuous Operations	1,559,000	1,486,000	1,597,000	1,325,000
Tax Provision	518,000	414,000	221,000	337,000
Pretax Income	2,077,000	1,900,000	1,818,000	1,662,000
Other Income Expense	49,000	-14,000	28,000	22,000
Other Non Operating Income Expenses	11,000	-8,000	9,000	-17,000
Special Income Charges	32,000	21,000	17,000	19,000
Other Special Charges				-27,000	-35,000
Write Off	16,000	13,000	12,000	8,000
Impairment Of Capital Assets					16,000
Restructuring And Mergern Acquisition	-48,000	-34,000	-29,000	-27,000
Gain On Sale Of Security	6,000	-27,000	2,000	20,000
Net Non Operating Interest Income Expense	-501,000	-489,000	-513,000	-527,000
Interest Expense Non Operating	501,000	489,000	513,000	527,000
Operating Income	2,530,000	2,403,000	2,303,000	2,167,000
Operating Expense	1,262,000	1,181,000	1,193,000	1,140,000
Selling General And Administration	1,262,000	1,181,000	1,193,000	1,140,000
General And Administrative Expense	1,262,000	1,181,000	1,193,000	1,140,000
Other Gand A	1,262,000	1,181,000	1,193,000	1,140,000
Salaries And Wages			-6,000	9,000	7,000
Gross Profit	3,792,000	3,584,000	3,496,000	3,307,000
Cost Of Revenue	4,422,000	3,965,000	3,580,000	3,535,000
Total Revenue	8,214,000	7,549,000	7,076,000	6,842,000
Operating Revenue	8,214,000	7,549,000	7,076,000	6,842,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	276,569	279,072	281,000	280,000
Share Issued	276,569	279,072	281,000	280,000
Net Debt	11,053,000	10,650,000	10,633,000	11,427,000
Total Debt	13,189,000	12,286,000	12,031,000	12,661,000
Tangible Book Value	-9,203,000	-8,800,000	-8,877,000	-9,868,000
Invested Capital	4,437,000	3,618,000	3,287,000	2,918,000
Working Capital	524,000	602,000	332,000	-56,000
Net Tangible Assets	-9,203,000	-8,800,000	-8,877,000	-9,868,000
Capital Lease Obligations	1,427,000	1,020,000	886,000	867,000
Common Stock Equity	-7,325,000	-7,648,000	-7,858,000	-8,876,000
Total Capitalization	4,410,000	3,599,000	3,242,000	2,528,000
Total Equity Gross Minority Interest	-7,325,000	-7,648,000	-7,858,000	-8,876,000
Stockholders Equity	-7,325,000	-7,648,000	-7,858,000	-8,876,000
Gains Losses Not Affecting Retained Earnings	-311,000	-392,000	-302,000	-369,000
Other Equity Adjustments	-311,000	-392,000	-302,000	-369,000
Retained Earnings	-7,014,000	-7,256,000	-7,616,000	-8,507,000
Capital Stock	0	0	60,000	0
Common Stock	0	0	60,000	0
Total Liabilities Net Minority Interest	15,522,000	14,375,000	14,089,000	14,722,000
Total Non Current Liabilities Net Minority Interest	14,006,000	13,106,000	12,812,000	13,057,000
Other Non Current Liabilities	960,000	938,000	913,000	873,000
Long Term Debt And Capital Lease Obligation	13,046,000	12,168,000	11,899,000	12,184,000
Long Term Capital Lease Obligation	1,311,000	921,000	799,000	780,000
Long Term Debt	11,735,000	11,247,000	11,100,000	11,404,000
Current Liabilities	1,516,000	1,269,000	1,277,000	1,665,000
Other Current Liabilities	531,000	419,000	373,000	425,000
Current Debt And Capital Lease Obligation	143,000	118,000	132,000	477,000
Current Capital Lease Obligation	116,000	99,000	87,000	87,000
Current Debt	27,000	19,000	45,000	390,000
Other Current Borrowings	27,000	19,000	45,000	390,000
Pensionand Other Post Retirement Benefit Plans Current	285,000	242,000	258,000	246,000
Payables And Accrued Expenses	557,000	490,000	514,000	517,000
Current Accrued Expenses	219,000	210,000	228,000	258,000
Interest Payable	86,000	84,000	82,000	83,000
Payables	338,000	280,000	286,000	259,000
Total Tax Payable	46,000	31,000	55,000	16,000
Income Tax Payable	46,000	31,000	55,000	16,000
Accounts Payable	292,000	249,000	231,000	243,000
Total Assets	8,197,000	6,727,000	6,231,000	5,846,000
Total Non Current Assets	6,156,000	4,856,000	4,622,000	4,237,000
Other Non Current Assets	495,000	448,000	473,000	466,000
Non Current Deferred Assets	965,000	1,071,000	1,045,000	750,000
Non Current Deferred Taxes Assets	965,000	1,071,000	1,045,000	750,000
Investments And Advances		0	124,000	116,000	118,000
Long Term Equity Investment		0	124,000	116,000	118,000
Investments In Other Ventures Under Equity Method		0	124,000	116,000	118,000
Investmentsin Subsidiariesat Cost					118,000
Goodwill And Other Intangible Assets	1,878,000	1,152,000	1,019,000	992,000
Other Intangible Assets	909,000	416,000	377,000	354,000
Goodwill	969,000	736,000	642,000	638,000
Net PPE	2,818,000	2,185,000	1,961,000	1,913,000
Accumulated Depreciation	-1,485,000	-1,384,000	-1,332,000	-1,283,000
Gross PPE	4,303,000	3,569,000	3,293,000	3,196,000
Other Properties	1,213,000	881,000	764,000	742,000
Machinery Furniture Equipment	924,000	714,000	676,000	651,000
Buildings And Improvements	1,785,000	1,591,000	1,480,000	1,427,000
Land And Improvements	381,000	383,000	373,000	376,000
Current Assets	2,040,000	1,871,000	1,609,000	1,609,000
Other Current Assets	64,000	58,000	159,000	152,000
Assets Held For Sale Current	1,000	21,000	4,000	190,000
Restricted Cash	192,000	155,000	177,000	220,000
Prepaid Assets	119,000	100,000		152,000	138,000
Receivables	955,000	830,000	757,000	680,000
Taxes Receivable	114,000	55,000	20,000	32,000
Accounts Receivable	841,000	775,000	737,000	648,000
Allowance For Doubtful Accounts Receivable	-60,000	-74,000	-39,000	-37,000
Gross Accounts Receivable	901,000	849,000	776,000	685,000
Cash Cash Equivalents And Short Term Investments	709,000	707,000	512,000	367,000
Other Short Term Investments	0	91,000	0
Cash And Cash Equivalents	709,000	616,000	512,000	367,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	1,639,000	1,432,000	1,318,000	1,148,000
Repurchase Of Capital Stock	-552,000	-441,000	-50,000	-1,200,000
Repayment Of Debt	-1,102,000	-479,000	-676,000	-699,000
Issuance Of Debt	1,582,000	582,000	0	999,000
Capital Expenditure	-371,000	-257,000	-285,000	-279,000
Interest Paid Supplemental Data	516,000	510,000	526,000	486,000
Income Tax Paid Supplemental Data	405,000	494,000	432,000	371,000
End Cash Position	923,000	807,000	724,000	647,000
Beginning Cash Position	807,000	724,000	647,000	771,000
Effect Of Exchange Rate Changes	32,000	-21,000	10,000	-26,000
Changes In Cash	84,000	104,000	67,000	-98,000
Financing Cash Flow	-924,000	-1,163,000	-1,429,000	-1,323,000
Cash Flow From Continuing Financing Activities	-924,000	-1,163,000	-1,429,000	-1,323,000
Net Other Financing Charges	-63,000	-73,000	-25,000	-53,000
Cash Dividends Paid	-789,000	-752,000	-678,000	-649,000
Common Stock Dividend Paid	-789,000	-752,000	-678,000	-649,000
Net Common Stock Issuance	-552,000	-441,000	-50,000	-1,200,000
Common Stock Payments	-552,000	-441,000	-50,000	-1,200,000
Net Issuance Payments Of Debt	480,000	103,000	-676,000	579,000
Net Short Term Debt Issuance	-47,000	345,000	-279,000	279,000
Short Term Debt Payments	-136,000	0	-279,000	0
Short Term Debt Issuance	89,000	345,000	0	279,000
Net Long Term Debt Issuance	527,000	-242,000	-397,000	300,000
Long Term Debt Payments	-966,000	-479,000	-397,000	-699,000
Long Term Debt Issuance	1,493,000	237,000	0	999,000
Investing Cash Flow	-1,003,000	-422,000	-107,000	-202,000
Cash Flow From Continuing Investing Activities	-1,003,000	-422,000	-107,000	-202,000
Net Other Investing Changes	-19,000	-19,000	-3,000	4,000
Net Investment Purchase And Sale	91,000	-91,000	0	0
Net Business Purchase And Sale	-704,000	-55,000	181,000	73,000
Sale Of Business	78,000	153,000	181,000	73,000
Purchase Of Business	-782,000	-208,000	0	0
Capital Expenditure Reported	-371,000	-257,000	-285,000	-279,000
Operating Cash Flow	2,010,000	1,689,000	1,603,000	1,427,000
Cash Flow From Continuing Operating Activities	2,010,000	1,689,000	1,603,000	1,427,000
Change In Working Capital	-17,000	-86,000	-91,000	-105,000
Change In Payables And Accrued Expense	46,000	-21,000	13,000	-22,000
Change In Payable	46,000	-21,000	13,000	-22,000
Change In Account Payable	94,000	8,000	-30,000	-39,000
Change In Tax Payable	-48,000	-29,000	43,000	17,000
Change In Income Tax Payable	-48,000	-29,000	43,000	17,000
Change In Prepaid Assets	-18,000	-12,000	-15,000	1,000
Change In Receivables	-45,000	-53,000	-89,000	-84,000
Other Non Cash Items	112,000	76,000	162,000	60,000
Stock Based Compensation	70,000	69,000	95,000	84,000
Asset Impairment Charge	22,000	12,000	13,000	10,000
Deferred Tax	107,000	-30,000	-290,000	-55,000
Deferred Income Tax	107,000	-30,000	-290,000	-55,000
Depreciation Amortization Depletion	206,000	175,000	153,000	146,000
Depreciation And Amortization	206,000	175,000	153,000	146,000
Operating Gains Losses	-49,000	-13,000	-36,000	-38,000
Gain Loss On Investment Securities					-86,000
Gain Loss On Sale Of Business	-48,000	-34,000	-29,000	-27,000
Net Income From Continuing Operations	1,559,000	1,486,000	1,597,000	1,325,000

These metrics estimate what Yum! Brands, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

N/A

Margin of Safety

—

Market Cap ÷ Company Value

-0.60

P/B Ratio

-5.81

Warren's Owner Earnings

$2.1B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$8.2B

vs > $1.5B revenue

❌ Strong Financial Condition

1.35x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.84%

vs Uninterrupted dividends

❌ Earnings Growth

+21.4% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

24.8x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

N/A (negative book value)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-48.82

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

N/A

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	23.8%	17.3%	17.8%	21.1%	N/A
Repurchase of Capital Stock	-$552M	-$441M	-$50M	-$1.2B	N/A
Free Cash Flow	$1.6B ▲	$1.4B ▲	$1.3B ▲	$1.1B •	N/A •
Warren's Owner Earnings	$2.1B	$1.9B	$2.0B	$1.8B	N/A

Peers & Industry Comparison

Restaurants — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
YUM	$154.19	$42.6B	24.83	46.2%	19.0%	$8.2B
MCD McDonald's Corporation	$284.28	$202.1B	23.8	57.4%	31.9%	$26.9B
SBUX Starbucks Corporation	$104.86	$119.5B	80.0	21.9%	3.9%	$38.5B
QSR Restaurant Brands International	$80.09	$36.6B	30.5	33.8%	8.2%	$9.4B
DPZ Domino's Pizza Inc	$330.37	$11.0B	19.0	28.7%	11.9%	$5.0B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.17%

Low — management has little skin in the game

Return on Assets (ROA)

19.0%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$552M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+7.3% YoY

Debt is roughly stable

Leadership Team

Christopher Lee Turner

CEO & Director

Age 50

Pay: $3,078,667

0.197% of net income

Ranjith Roy

Chief Financial Officer

Age 44

Pay: $1,300,932

0.083% of net income

Tracy Skeans

COO and Chief People & Culture Officer

Age 52

Pay: $2,654,376

0.170% of net income

Sean Tresvant

Chief Consumer Officer & CEO of Taco Bell

Age 54

Pay: $3,372,865

0.216% of net income

Aaron Powell

Chief Executive Officer of Pizza Hut Division

Age 53

Pay: $1,466,735

0.094% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	12.71%	35,098,553
Blackrock Inc.	9.42%	26,004,982
JPMORGAN CHASE & CO	7.26%	20,050,263
Capital International Investors	7.03%	19,419,826
T. Rowe Price Investment Management, Inc.	5.56%	15,366,926
State Street Corporation	4.77%	13,164,814
Geode Capital Management, LLC	3.19%	8,800,382
NORGES BANK	1.69%	4,672,125

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.60

Low volatility — more stable than the market

Short Interest

2.8% of float

Low short interest — market is not heavily bearish

Current Ratio

0.65x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $137.33 Current: $154.19 High: $169.39

Currently at 53% of 52-week range

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