---
title: Yum! Brands (YUM) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/yum
ticker: YUM
as_of: 2026-10-17
sector: Consumer Cyclical
industry: Restaurants
---
# Yum! Brands (YUM)

Yum! Brands (YUM) closed at $150.51 on Oct 16, 2026, undervalued by 14% vs its model value of $174.76 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $150.51 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $174.76 |
| Price vs model | undervalued by 14% vs model |
| Range of that model | $88.96 – $509.06 |
| Market value | $41.1B |
| P/E (fiscal 2025) | 27.1 |
| Net margin (fiscal 2025) | 19.0% |
| Free cash flow (fiscal 2025) | $1.6B |
| Dividend yield (trailing twelve months) | 1.97% |
| Beta | 0.55 |
| Cost of capital (WACC) | 7.04% |
| Business classification | Mature & Stable (Low/slowing growth (~8% recent), Moderate margins (19% net margin), Pays dividends, Highly cyclical earnings, High leverage (D/E 5.0x)) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.97% |
| Dividends per share, last 12 months | $2.96 |
| Dividends / free cash flow (fiscal 2025) | 48.1% |
| Raised | 8 years in a row |
| Growth over 5 years | 8.5% a year |
| Latest payment | $0.75, ex-date Sep 9, 2026, paid Sep 18, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 26, 2021 | $1.97 |
| To Aug 26, 2022 | $2.21 |
| To Aug 28, 2023 | $2.39 |
| To Aug 27, 2024 | $2.62 |
| To Sep 2, 2025 | $2.80 |
| Trailing twelve months (to Sep 9, 2026) | $2.96 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $174.76 | $88.96 | $509.06 |
| DCF · Perpetuity growth · 10y | cross check | $182.63 | $97.66 | $517.40 |
| DCF · EBITDA exit · 5y | cross check | $125.21 | $76.59 | $182.64 |
| DCF · EBITDA exit · 10y | cross check | $140.18 | $88.00 | $210.09 |
| P/E · peers | cross check | $113.41 | $101.30 | $133.03 |
| P/E · own history | cross check | $163.84 | $144.96 | $171.96 |
| PEG | sanity check | $103.24 | $103.24 | $103.24 |
| EV/EBITDA · peers | cross check | $104.08 | $92.51 | $117.89 |
| EV/Revenue · peers | cross check | $74.36 | $15.76 | $125.86 |
| Earnings power value | cross check | $54.14 | $37.63 | $79.61 |
| Dividend discount | cross check | $82.45 | $53.61 | $151.98 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 8 open-market sales ($2.0M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 7, 2026 | Turner Christopher Lee | Chief Executive Officer | Open-market sell (10b5-1 plan) | 285 | $39,931.4 |
| Oct 1, 2026 | Mezvinsky Scott | KFC Division CEO | Option/RSU exercise (10b5-1 plan) | 482 | $32,776 |
| Oct 1, 2026 | Mezvinsky Scott | KFC Division CEO | Disposition to issuer (10b5-1 plan) | 241 | $32,879.6 |
| Oct 1, 2026 | Mezvinsky Scott | KFC Division CEO | Open-market sell (10b5-1 plan) | 241 | $32,990.5 |
| Oct 1, 2026 | Mezvinsky Scott | KFC Division CEO | Option/RSU exercise (10b5-1 plan) | 482 | — |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 1, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1041061/000104106126000187/yum-20260901.htm |
| Aug 28, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/1041061/000104106126000180/yum-20260820.htm |
| Aug 21, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/1041061/000104106126000171/yum-20260820.htm |
| Aug 7, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.01 Completion of Acquisition/Disposition; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1041061/000110465926092305/tm2622152d1_8k.htm |
| Aug 7, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/1041061/000104106126000165/yum-20260326.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Terry Smith | 2026-06-30 | 556,107 | $88.9M |
| Thomas Gayner | 2026-06-30 | 245,213 | $39.2M |
| William Von Mueffling | 2026-06-30 | 83,427 | $13.3M |
| Bridgewater | 2026-06-30 | 15,909 | $2.5M |

4 tracked managers in all.

## About

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 TRICO…

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Source: https://sweetvaluelab.com/stocks/yum (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.