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Yum! Brands, Inc. — Intrinsic Value & Fair Price

YUM
NYSEConsumer CyclicalRestaurantsCIK 0001041061yum.comAbout YUM
Last close · Oct 16, 2026150.51−0.32 (−0.21%)
Market cap$41.1B
Model value · DCF · Perpetuity growth · 5y
174.76
Yum! Brands closed at $150.51 — undervalued by 14% vs model.
88.96the model's range509.06

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
54.14 – 182.63
Wall St. target
170.00 11% below
Below model, 1y
16 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.97%
Past 2 years
low 1.67%high 2.18%
Dividends per share, a year at a time
$1.97Aug ’21$2.21Aug ’22$2.39Aug ’23$2.62Aug ’24$2.80Sep ’25$2.96TTM
Dividends / free cash flow, FY2025
48.1%
Raised
8 years in a row
Growth, 5 yrs
8.5% a year
Last change
+5.6% · Feb 2026
Every payment, with ex-dates · latest $0.75, paid Sep 18, 2026

Research on YUM

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How it is valued

Valued asMature & stable
Low/slowing growth (~8% recent)Moderate margins (19% net margin)Pays dividendsHighly cyclical earningsHigh leverage (D/E 5.0x)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
27.1×
EV / EBITDA
18.8×
FCF yield
3.9%
Dividend yield, TTM
1.97%
Beta
0.55
Cost of capital (WACC)
7.04%
Full financials

Analyst actions

third-party, quoted
10-06Guggenheim · target155.00
09-24Argus Research · “Hold” from “Buy”downgrade
09-16Seaport Global · target162.00
09-16Robert W. Baird · target165.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label

The weekly

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About Yum! Brands

YUM! Brands, Inc. (YUM) is a leading global quick-service restaurant enterprise that focuses on the creation, management, and franchising of its restaurant concepts internationally. Its business is organized into four main divisions: KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill. The company operates establishments under these well-known brands, offering diverse food categories such as chicken, pizza, Mexican-style dishes, and made-to-order chargrilled burgers and sandwiches, among other food products. As of December 31, 2021, YUM! Brands boasted a significant worldwide presence, comprising 26,934 KFC outlets, 18,381 Pizza Hut locations, 7,791 Taco Bell restaurants, and 318 The Habit Burger Grill units, spread across roughly 157 countries and territories. The company, which maintains its headquarters in Louisville, Kentucky, was established in 1997. It was formerly known as TRICON Global Restaurants, Inc., before officially adopting the name YUM! Brands, Inc. in May 2002.

CEO
Christopher Lee Turner
Headquarters
Louisville, KY
Employees
49,000
IPO
1997-09-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.