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Yum! Brands, Inc.
S&P 500
🏹 Trader: 🎯 Near 52W High View all →
$42.7B
Market Cap
27.3
P/E
2.38
PEG
31.8%
ROCE
-20.8%
ROE
-1.63
D/E
31.3%
OPM
-7.8%
% from 52W High
52
α RS
🔍 YUM is showing a high-conviction setup because it matches 9 of 37 tracked screener presets, an ECS of 61.6 last quarter, and it's within 6.7% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction ECS 52W High
Sources
Conviction 9/37 · ECS 61.6 · 6.7% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for YUM including FX impact
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📈 Price History
Ratio Health
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About

Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally.

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⭐ Superinvestors Holding YUM
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 1.57M $244.1M 0.31% Mar 2026
Jim Simons Renaissance Technologies LLC 4.4K $684K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Mixed quarter Investor Presentation One-Pager? Q2 2026
KFC System Sales
$9.6B
+6% YoY ex-FX
Taco Bell System Sales
$4.7B
+9% YoY ex-FX
GAAP EPS
$3.08
+131% YoY
Taco Bell U.S. Restaurant Margin
26.2%
+170 bps YoY
What Went Right
  • Ex-Pizza Hut Q2 system sales grew 7% ex-FX with same-store sales +4% and unit growth +6%
  • Taco Bell U.S. comps were +7%, its ninth consecutive quarter ahead of the QSR industry
  • KFC added 660 gross stores in Q2 and is on track for a record development year
What to Watch
  • Taco Bell U.S. Q3 QTD comps were -2% through July 27 due to the industry food-safety issue, with peak impact on July 18 and recovery still early
  • Taco Bell U.S. Q3 equity store-level margins are guided down to 19%-21% from 26.2% in Q2 due to deleverage and promotions
  • KFC same-store sales growth was only +2% in Q2, and management said it is dissatisfied with that level
Management Guidance
  • No explicit Q3 revenue guidance was provided; management says H1 ex-Pizza Hut met or exceeded its algorithm and the goal is to return Taco Bell to its pre-issue trajectory
  • Taco Bell U.S. Q3 equity store-level operating margin is expected to be 19%-21%
  • Pizza Hut sale is expected to close in August, with ~$2.3B net proceeds to repay the revolver and fund share purchases; transition services fees are about $2.5M per month for the rest of 2026
Investor Lens
The long-term thesis is mixed but largely intact. Ex-Pizza Hut growth was strong in H1, KFC development momentum is accelerating, and the Pizza Hut sale sharpens capital allocation and focus. Taco Bell's food-safety sales hit is a real near-term drag, but management reports steadily improving trends, with the last four days halfway back to prior-year sales levels. Social sentiment has returned to pre-issue positivity, and the brand's value/innovation/digital playbook is being deployed aggressively. The Q3 margin guide shows the pain, but the structural drivers of the franchise remain unchanged.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Strong H1, but Taco Bell's Q3 is down -2% QTD
Revenue
Excluding Pizza Hut, Q2 system sales grew 7% ex-FX, with same-store sales +4% and unit growth +6%. KFC system sales were $9.6B (+6% ex-FX) and Taco Bell system sales were $4.7B (+9% ex-FX). Digital system sales ex-Pizza Hut approached $9B, with digital mix reaching 61%.
Profitability
GAAP EPS was $3.08, up 131% YoY, while EPS excluding special items was $1.62, up 12%. Ex-Pizza Hut core operating profit grew 8%, and worldwide core operating profit grew 5%. KFC divisional operating profit rose 9% and Taco Bell rose 19% on an ex-FX basis.
Margins
Taco Bell U.S. company-operated restaurant margins expanded 170 bps to 26.2% in Q2, helped by sales leverage, P&L optimization and acquired stores. KFC company-owned restaurant margins were 12.0%, down 10 bps YoY. For Q3, Taco Bell U.S. equity store-level margins are guided to 19%-21%.
Balance Sheet
Yum! repurchased about $670M of shares in H1, funded by free cash flow and revolver borrowings. The Pizza Hut sale is expected to generate ~$2.3B of net proceeds, earmarked to pay down the revolver and mostly fund share purchases. No period-end cash or debt balance was disclosed.
Key Risks
The U.S. food-safety industry issue has hurt Taco Bell sales trends in July, and management cautions it is still early in the recovery. Q3 margins will be pressured by lower sales leverage and value-oriented promotions. KFC's developed-market performance remains uneven, with U.S. KFC system sales down 2%.
Outlook
Management did not provide numeric full-year guidance but reiterated confidence in its algorithm, with H1 ex-Pizza Hut results meeting or exceeding expectations. It expects Taco Bell to return to its pre-issue trajectory, KFC to deliver a record development year, and the Pizza Hut sale to close in August.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
System sales grew 7% year-over-year excluding Pizza Hut, with strong digital and unit growth across brands. KFC and Taco Bell outperformed, though Taco Bell faced a temporary sales dip due to an industry-wide food safety issue, with recovery underway.
Q1 2026 Q1 2026 2026-04-29
Q1 2026 saw strong system sales, margin expansion, and digital growth, led by KFC and Taco Bell. Strategic innovation, robust unit development, and disciplined capital allocation support confidence in meeting long-term growth targets, despite inflation and geopolitical risks.
Q4 2025 Q4 2025 2026-02-04
KFC and Taco Bell delivered robust growth in sales, margins, and unit development, with digital and technology investments fueling momentum. Pizza Hut faces targeted closures amid a strategic review, while guidance for 2026 remains strong, especially for the core brands.
Q3 2025 Q3 2025 2025-11-04
Leadership transition and strategic review of Pizza Hut mark a pivotal quarter, with KFC and Taco Bell driving strong global growth and record unit development. Digital sales, innovation, and disciplined capital allocation underpin robust results and a positive outlook.
Q2 2025 Q2 2025 2025-08-05
System sales grew 4% in Q2, led by digital expansion and strong unit growth at KFC International and Taco Bell U.S. Despite a challenging consumer environment, digital sales hit a record 57% mix, and the company remains on track for 8% core operating profit growth for the year.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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