YUM Stock Analysis — Yum! Brands
Sector: Consumer Staples
AI Verdict
Yum! is priced fairly for its expected growth, but you’re not getting a bargain—its moat justifies the premium only if franchise momentum holds up.
Competitive Moat
Yum! Brands owns the global franchise rights to KFC, Taco Bell, and Pizza Hut, giving it scale in supply chain and marketing that independent competitors can't match. Its franchise-heavy model generates steady cash flow with minimal capital risk, making it resilient in downturns.
Summary
Yum! trades at 21.3x next year's earnings with analysts expecting 17.8% EPS growth, making it a rare large-cap consumer staple with double-digit profit expansion.
Where It Stands
The stock is up 7.32% over the past year, has a neutral RSI of 53.9, and trades at a forward P/E of 21.3x versus the sector median of 20x.
Key Metrics
- RSI: 53.9 — Neutral
- Trailing P/E: 25.1x
- Forward P/E: 21.3x
- PEG Ratio: 1.29
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $43.0B
- Dividend Yield: 0.02%
- 1-Year Return: 7.32%
- 52-Week High: $170.14
- 52-Week Low: $137.33
Analyst Consensus
16 Buy · 16 Hold · 0 Sell (32 analysts)
Bull Case
With forward EPS growth expected at 17.8% and a forward P/E of 21.3x, you're paying a fair price for above-average earnings momentum in the consumer staples space.
Bear Case
If the P/E compresses from 21.3x to the sector median of 20x, that's a potential 6% downside even before considering any earnings misses.
Catalyst to Watch
Watch for quarterly franchisee sales updates—if same-store sales growth slows, the earnings growth narrative could unravel.