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YUM Yum! Brands

restaurant · 2026-10-15

N/A
too hard · 82
Owner-earnings value$121.14
Price$146.69
Margin of safety -17.4%

Quality gate · 82/100

Returns on capital 30/30
Consistency 20.9/22
Margins / pricing power 12.7/16
Balance sheet 3.8/16
Cash conversion 9.6/10
Capital allocation 4.9/6

⚠ negative book equity · over-levered (net debt/EBITDA 4.2x > 4x)

Median ROIC51.4%
Gross margin45.3%
Net debt / EBITDA4.2x
FCF conversion93%
Share count / yr-0.4%
Profitable years4/4

Moat & management

Owner-earnings inputs

Owner earnings (TTM)1.68B
Owner-earnings yield4.2%
Free-cash-flow yield4.2%
Growth used (normalized)6.3%
Market-implied growth (reverse DCF)10.9%
Terminal growth3.0%
Discount rate (hurdle)9.0%

Projected owner earnings

YrOwner earningsGrowthPV
11.78B 6.3%1.64B
21.89B 5.9%1.59B
31.99B 5.6%1.54B
42.10B 5.2%1.49B
52.20B 4.8%1.43B
62.30B 4.5%1.37B
72.39B 4.1%1.31B
82.48B 3.7%1.25B
92.56B 3.4%1.18B
102.64B 3.0%1.12B

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~11%/yr owner-earnings growth over 10y (reverse DCF); model credits 6%.

History

DateQualityPriceValueMoSRating
2026-10-15 82 $146.69 $121.14 -17.4% N/A
2026-10-02 82 $136.69 $121.14 -11.4% N/A
2026-09-18 82 $135.75 $121.14 -10.8% N/A
2026-09-04 82 $152.54 $121.14 -20.6% N/A
2026-08-21 82 $152.33 $121.14 -20.5% N/A
2026-08-07 82 $152.28 $121.14 -20.5% N/A
2026-07-24 82 $147.37 $117.66 -20.2% N/A
2026-07-10 82 $162.39 $117.66 -27.5% N/A
2026-07-02 82 $161.59 $117.66 -27.2% N/A
2026-06-25 82 $153.02 $117.66 -23.1% N/A
2026-06-23 82 $151.60 $117.66 -22.4% N/A