Yum! Brands Inc

Yum! Brands is a pure franchisor operating three of the world's most recognized fast food chains: KFC, Taco Bell, and Pizza Hut, plus The Habit Burger & Grill. With approximately 98% of its roughly 60,000 restaurants franchised, Yum! collects royalty fees and supply chain income rather than operating kitchens itself—a capital-light model that generates high margins and strong free cash flow. Taco Bell is its most profitable brand in the US; KFC is the primary international growth driver.

Yum's asset-light franchise model insulates it from food and labor cost inflation that hammers restaurant operators directly, since those costs fall primarily on franchisees. International expansion through KFC—particularly in emerging markets—provides a long runway for unit growth. Same-store sales volatility at Pizza Hut has been a persistent drag. Digital ordering and loyalty programs are growing but require ongoing technology investment. High debt from shareholder-friendly capital returns is a structural consideration.

McDonald's is the dominant global fast food franchisor and a benchmark for Yum's performance. Restaurant Brands International franchises Burger King, Tim Hortons, Popeyes, and Firehouse Subs. Domino's competes directly with Pizza Hut in delivery pizza. In Mexican fast casual, Chipotle competes with Taco Bell for share of wallet among younger consumers. Internationally, local QSR chains in each market provide category-specific competition.

Yum! Brands has paid a consistent and growing quarterly dividend, making it one of the more reliable income-generating restaurant stocks. The company returns substantial capital through dividends and buybacks given its low capital intensity as a franchisor—it collects fees without owning the restaurants. Dividend growth has generally tracked earnings growth, and management has maintained the dividend through periods of same-store sales weakness.

YUM is currently trading at $159.16, down 0.17% in today's session. Over the past 52 weeks, the stock has traded between a low of $137.33 and a high of $165.32. The current price represents 78% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 35 analysts covering YUM, the consensus rating is Hold — 17 rate it a buy, 18 hold, and 0 sell. The average price target sits at $177.95, implying 12% upside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Yum! Brands Inc generated $8.25B in revenue during fiscal year 2026, with $1.57B reaching the bottom line as net income. The net profit margin of 19.0% is solid for its sector.

YUM trades at a P/E ratio of 29.37 on trailing earnings of $5.55 per share. That's roughly in line with the broader market average of ~20-25x. Comparing this multiple against Hotels, Restaurants & Leisure sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: +3.86% (3M), +3.39% (6M), +0.30% (1Y), +5.76% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether YUM is outperforming or lagging the broader market.