Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (29,900 global units at year-end 2023), Pizza Hut (19,866 units), Taco Bell (8,564 units), and The Habit Burger Grill (381 units). With $64 billion in 2023 systemwide sales, the firm is the second-largest restaurant company in the world behind McDonald's ($130 billion), ahead of Restaurant Brands International and Starbucks ($29 billion). Yum is 98% franchised, with the largest franchisee, Yum China, spun out in 2016 (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.

Financial Strength

4/10

Name	Current	Vs Industry
Cash-To-Debt	0.04
Equity-to-Asset	-1.26
Debt-to-Equity	-1.53
Debt-to-EBITDA	4.84
Interest Coverage	4.5
Piotroski F-Score	9/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	2.42	Distress Grey Safe
Beneish M-Score	-2.35	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

8/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	10.5
	3-Year EBITDA Growth Rate	16.1
	3-Year EPS without NRI Growth Rate	12.6
	3-Year FCF Growth Rate	7.4
	3-Year Book Growth Rate	-2.1
	Future 3-5Y EPS without NRI Growth Rate	12.98
	Future 3-5Y Total Revenue Growth Rate	6.9

Momentum Rank

7/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	84.2
	9-Day RSI	73.13
	14-Day RSI	66.21
	6-1 Month Momentum %	13.52
	12-1 Month Momentum %	-2.33

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.26
	Quick Ratio	1.26
	Cash Ratio	0.4
	Days Sales Outstanding	34.15
	Days Payable	77.16

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	1.76
	Dividend Payout Ratio	0.47
	3-Year Dividend Growth Rate	8.8
	Forward Dividend Yield %	1.88
	5-Year Yield-on-Cost %	2.94
	3-Year Average Share Buyback Ratio	2.2
	Shareholder Yield %	2.14

Profitability Rank

9/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	49.41
	Operating Margin %	32.63
	Net Margin %	22.57
	FCF Margin %	18.63
	ROE %	Neg. Equity
	ROA %	26.84
	ROIC %	40.87
	ROC (Joel Greenblatt) %	120.33
	ROCE %	52.37
	Years of Profitability over Past 10-Year	10

GF Value Rank

6/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	25.36
	Forward PE Ratio	24.48
	PE Ratio without NRI	27.42
	Shiller PE Ratio	30.1
	Price-to-Owner-Earnings	32.84
	PEG Ratio	4.9
	PS Ratio	5.71
	Price-to-Free-Cash-Flow	30.62
	Price-to-Operating-Cash-Flow	25.14
	EV-to-EBIT	22.04
	EV-to-Forward-EBIT	19.94
	EV-to-EBITDA	20.68
	EV-to-Forward-EBITDA	18.77
	EV-to-Revenue	7.26
	EV-to-Forward-Revenue	6.69
	EV-to-FCF	38.97
	Price-to-Projected-FCF	11.41
	Price-to-Median-PS-Value	1.1
	Price-to-Peter-Lynch-Fair-Value	3.89
	Earnings Yield (Greenblatt) %	4.54
	FCF Yield %	3.3
	Forward Rate of Return (Yacktman) %	9.97

GF Value: $143.63

YUM

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