Zacks Investment Research·Jun 25, 2026
MCD vs. YUM: Which Restaurant Stock Has Better Growth Prospects Now?McDonald's and Yum! Brands are expanding digital, value and global growth strategies as investors compare restaurant stock opportunities.
Yum! Brands, Inc.(YUM)Earnings, Financials & Key Ratios
YUM•NYSE
$167.49
30.1× P/E·Price updated Jul 7, 2026
AboutYUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division. The company operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. As of December 31, 2021, it had 26,934 KFC units; 18,381 Pizza Hut units; 7,791 Taco Bell units; and 318 The Habit Burger Grill units in approximately 157 countries and territories. 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.Show more
- Revenue$8.21B+8.8%
- EBITDA$2.74B+6.1%
- Net Income$1.56B+4.9%
- EPS (Diluted)5.56+6.5%
- Gross Margin46.17%-2.8%
- EBITDA Margin33.31%-2.5%
- Operating Margin30.8%-3.2%
- Net Margin18.98%-3.6%
YUM Price & Volume
Yum! Brands, Inc. (YUM) stock price & volume — 10-year historical chart
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Asset-Light Model Drives Consistent Shareholder Returns
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Strong
Financial:Strained
Cash Flow:Robust
Primary Risk:Negative Equity Position
Key Thesis Takeaways
- Yum!
- Brands leverages a highly efficient, asset-light franchise model to generate robust free cash flow, which consistently supports aggressive capital returns despite a structurally negative equity position.
- While the company maintains impressive operating margins of 31.3%, investors should monitor the persistent downward trend in gross margins, which have compressed from 50.1% in 2024Q1 to 44.7% in 2026Q1.
- The long-term outlook remains tethered to the company's ability to service its $12.0 billion debt load through reliable royalty streams while navigating potential liquidity constraints indicated by a recent current ratio of 0.65.
Verdict Logic
while the company demonstrates strong operational efficiency with a 31.3% operating margin, the current ratio of 0.65 and the persistent negative equity position warrant caution regarding long-term balance sheet solvency.
YUM Growth Metrics
Yum! Brands, Inc. (YUM) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years2.5%
5 Years7.76%
3 Years6.28%
TTM9.65%
Profit CAGR
10 Years1.89%
5 Years11.52%
3 Years5.57%
TTM21.96%
EPS CAGR
10 Years6.73%
5 Years13.59%
3 Years6.75%
TTM23.71%
Return on Capital
10 Years51.12%
5 Years47.54%
3 Years46.2%
Last Year41.68%
YUM Recent Earnings
Yum! Brands, Inc. (YUM) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 7/12 qtrs (58%)●Beat Revenue 3/12 qtrs (25%)
Q2 2026Latest
Apr 29, 2026Metric
Actual
Est
EPS
$1.50+8.7%
$1.38
Rev
$2.1B+0.7%
$2.0B
Q1 2026
Feb 4, 2026Metric
Actual
Est
EPS
$1.73-1.7%
$1.76
Rev
$2.5B+2.6%
$2.4B
Q4 2025
Nov 4, 2025Metric
Actual
Est
EPS
$1.58+6.0%
$1.49
Rev
$2.0B-1.1%
$2.0B
Q3 2025
Aug 5, 2025Metric
Actual
Est
EPS
$1.44-1.4%
$1.46
Rev
$1.9B-0.3%
$1.9B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 29, 2026 | $1.50vs $1.38+8.7% | $2.1Bvs $2.0B+0.7% |
| Q1 2026 | Feb 4, 2026 | $1.73vs $1.76-1.7% | $2.5Bvs $2.4B+2.6% |
| Q4 2025 | Nov 4, 2025 | $1.58vs $1.49+6.0% | $2.0Bvs $2.0B-1.1% |
| Q3 2025 | Aug 5, 2025 | $1.44vs $1.46-1.4% | $1.9Bvs $1.9B-0.3% |
Based on last 12 quarters of dataView full earnings history →
Latest YUM News
Recent stock market news and headlines for Yum! Brands, Inc. (YUM)
The Motley Fool·Jun 25, 2026
Better Buy: McDonald's or Yum! Brands After Selling Pizza Hut for $2.7 Billion?Yum! Brands was seeing an improvement in sales even before announcing this sale. Meanwhile, McDonald's is closing in on 50 straight years of dividend increases.
The Motley Fool·Jun 24, 2026
Yum! Brands Is Selling Pizza Hut. Investors Should Be Cautiously Optimistic.Yum! Brands is selling Pizza Hut in two separate transactions. Yum! authorized a $4 billion share repurchase.
MarketBeat·Jun 23, 2026
Top Consumer Discretionary Brands Add Buyback Capacity Amid WeaknessAfter experiencing underwhelming to outright poor performance recently, several big names in the consumer discretionary sector are loading up on buyback capacity. All three of these moves signal management's confidence in their ability to turn the tide, but each also comes with a unique set of circumstances.
The Motley Fool·Jun 20, 2026
Yum! Brands Sells Pizza Hut For $2.7 Billion. Here's Why Investors Should Be ConcernedYum! Brands is selling its Pizza Hut business in two transactions totaling $2.7 billion. The deal allows Yum!
Peers Comparison
Key metrics vs top competitors for Yum! Brands, Inc. (YUM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $167.49 | $46.3B | 30.12 | 8.81% | 18.98% | — | 1.69% | |
| $282.21 | $200.51B | 23.62 | 3.72% | 31.62% | — | — | |
| $73.94 | $25.62B | 31.46 | 12.23% | 9.96% | 18.45% | — | |
| $7.78 | $1.48B | 9.15 | -3.1% | 7.81% | 150.73% | — | |
| $15.68 | $299.07M | -3.72 | -6.75% | 2.82% | — | — | |
| $34.86 | $1.15B | 38.73 | -0.27% | 1.81% | — | — |
Compare YUM vs Peers
Yum! Brands, Inc. (YUM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
YUM SEC Filings & Documents
Yum! Brands, Inc. (YUM) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 29, 2026·SEC
Material company update
Apr 1, 2026·SEC
Material company update
Feb 12, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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YUM Frequently Asked Questions
Yum! Brands, Inc. (YUM) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Yum! Brands, Inc.'s revenue?
Yum! Brands, Inc. (YUM) reported $8.48B in revenue for fiscal year 2025. This represents a 12% decrease from $9.68B in 1997.
How fast is Yum! Brands, Inc. growing?
Yum! Brands, Inc. (YUM) grew revenue by 8.8% over the past year. This is steady growth.
Is YUM profitable?
Yes, Yum! Brands, Inc. (YUM) is profitable, generating $1.74B in net income for fiscal year 2025 (19.0% net margin).
Dividend & Returns
Does YUM pay dividends?
Yes, Yum! Brands, Inc. (YUM) pays a dividend with a yield of 1.69%. This makes it attractive for income-focused investors.
What is Yum! Brands, Inc.'s free cash flow?
Yum! Brands, Inc. (YUM) generated $1.65B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.