YUM Stock Analysis — Yum! Brands
Sector: Consumer Staples
AI Verdict
Yum trades at 22.6x next year's earnings with 11% EPS growth expected—you're paying a bit extra for the global franchise moat, but the price isn't cheap for the growth on offer.
Competitive Moat
Yum! Brands owns the global franchise rights to KFC, Taco Bell, and Pizza Hut, giving it massive scale and bargaining power with suppliers and franchisees. Its moat comes from brand recognition, a vast international franchise network, and the ability to roll out new menu innovations across thousands of locations quickly.
Summary
Yum! Brands' global franchise system lets it scale new menu ideas and digital ordering tech across KFC, Taco Bell, and Pizza Hut faster than most competitors.
Where It Stands
With a 1-year return of 4.17%, an RSI of 35.1 signaling near-oversold territory, and a forward P/E of 22.6x versus the consumer staples median of 20x, the stock is slightly expensive for its sector but not stretched.
Key Metrics
- RSI: 35.1 — Near Oversold
- Trailing P/E: 25.1x
- Forward P/E: 22.6x
- PEG Ratio: 2.53
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $43.1B
- Dividend Yield: 0.02%
- 1-Year Return: 4.17%
- 52-Week High: $169.39
- 52-Week Low: $137.33
Analyst Consensus
17 Buy · 18 Hold · 0 Sell (35 analysts)
Bull Case
Forward EPS is expected to grow 11.0% while the stock trades at 22.6x next year's earnings, so you're paying a modest premium for steady double-digit profit growth.
Bear Case
The trailing PEG ratio of 2.53 means you're paying over twice the growth rate for the stock, and if the RSI bounces from 35.1 to neutral, there’s limited room for a quick upside re-rating.
Catalyst to Watch
Watch for same-store sales updates and franchise expansion numbers—surprises here will shift sentiment quickly given the tight valuation.