YUM Stock Analysis — Yum! Brands
Sector: Consumer staples
AI Verdict
At 22.0x next year’s earnings with a negative -16.8% growth outlook, you’re paying a premium the numbers don’t yet support, even with the franchise moat.
Competitive Moat
Yum! Brands owns the global franchise rights to KFC, Taco Bell, and Pizza Hut, giving it powerful scale and a sticky franchisee network that is hard for new entrants to replicate. Its moat comes from brand recognition and a capital-light franchise model that generates steady cash flow even in weak consumer environments.
Summary
Yum! Brands is flashing an oversold RSI of 33.2 as investors digest a rare negative earnings outlook.
Where It Stands
Shares are down -4.26% over the past year, RSI is oversold at 33.2, and the stock trades at 22.0x forward earnings versus a sector median of 20x.
Key Metrics
- RSI: 33.2 — Near Oversold
- Trailing P/E: 18.3x
- Forward P/E: 22.0x
- Earnings Growth: -0.2%
- Revenue Growth: +0.1%
- Market Cap: $39.7B
- Dividend Yield: 0.02%
- 1-Year Return: -4.26%
- 52-Week High: $170.14
- 52-Week Low: $137.33
Analyst Consensus
16 Buy · 16 Hold · 0 Sell (32 analysts)
Bull Case
With a trailing P/E of 18.3x and a global franchise portfolio, the stock is now cheaper than its own forward multiple and could rebound if sentiment shifts.
Bear Case
Forward EPS is expected to drop -16.8%, so if the forward P/E falls back to the sector median of 20x, that would mean another ~9% downside from here.
Catalyst to Watch
Watch for next quarter’s earnings call — any sign that the -16.8% EPS drop is stabilizing could trigger a relief rally.