Yum! Brands Inc
NYSE:YUM
Intrinsic Value
Yum!Brands, Inc. operates as a service restaurant company. [ Read More ]
The intrinsic value of one YUM stock under the Base Case scenario is 121.72 USD. Compared to the current market price of 136.27 USD, Yum! Brands Inc is Overvalued by 11%.
Valuation Backtest
Yum! Brands Inc
Run backtest to discover the historical profit from buying and selling YUM stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Robust Growth Despite Mixed Sales Performance
2023-Q4 Earnings Call
Despite a 2% decrease in same-store sales influenced by Middle Eastern conflict, overall system sales grew 5% including a 4% rise in unit numbers and a 2% uptick in same-store sales over the year. Pizza Hut International's flat quarter was balanced by ongoing international promotions, while Pizza Hut U.S. saw a 4% same-store sales drop, but trends are expected to improve. The Habit Burger Grill notched a 6% system sales increase and 380 basis point margin boost through operation optimizations. Commitments to sustainability advanced, with a focus on lowering greenhouse emissions by nearly 50% by 2030 and expanding the use of recyclable plastics. Yum China highlighted its robust operations, engaging 470 million loyalty program members and promising 2-3 year paybacks on KFC and Pizza Hut investments. A strategic growth execution led to a 10% increase in system sales and 6% in same-store sales, with noteworthy expansion from KFC and Taco Bell in the U.S.. Financially, the company controlled costs effectively, as general and administrative expenses fell by 4%, while core operating profits rose by 8-12%. Full-year special EPS saw a 14% climb to $5.17. Alongside this, Yum! opened nearly 1,900 new units in the last quarter, primarily internationally.
Balance Sheet Decomposition
Yum! Brands Inc
Current Assets | 1.6B |
Cash & Short-Term Investments | 512m |
Receivables | 737m |
Other Current Assets | 360m |
Non-Current Assets | 4.6B |
PP&E | 2B |
Intangibles | 1B |
Other Non-Current Assets | 1.6B |
Current Liabilities | 1.3B |
Accounts Payable | 1.2B |
Other Current Liabilities | 108m |
Non-Current Liabilities | 12.8B |
Long-Term Debt | 11.1B |
Other Non-Current Liabilities | 1.7B |
Earnings Waterfall
Yum! Brands Inc
Revenue
|
7.1B
USD
|
Cost of Revenue
|
-3.6B
USD
|
Gross Profit
|
3.5B
USD
|
Operating Expenses
|
-1.2B
USD
|
Operating Income
|
2.3B
USD
|
Other Expenses
|
-730m
USD
|
Net Income
|
1.6B
USD
|
Free Cash Flow Analysis
Yum! Brands Inc
What is Free Cash Flow?
YUM Profitability Score
Profitability Due Diligence
Yum! Brands Inc's profitability score is 60/100. The higher the profitability score, the more profitable the company is.
Score
Yum! Brands Inc's profitability score is 60/100. The higher the profitability score, the more profitable the company is.
YUM Solvency Score
Solvency Due Diligence
Yum! Brands Inc's solvency score is 38/100. The higher the solvency score, the more solvent the company is.
Score
Yum! Brands Inc's solvency score is 38/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
YUM Price Targets Summary
Yum! Brands Inc
According to Wall Street analysts, the average 1-year price target for YUM is 148.34 USD with a low forecast of 128.27 USD and a high forecast of 174.3 USD.
Ownership
YUM Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
YUM Price
Yum! Brands Inc
Average Annual Return | 8.94% |
Standard Deviation of Annual Returns | 15.59% |
Max Drawdown | -52% |
Market Capitalization | 38.5B USD |
Shares Outstanding | 281 340 000 |
Percentage of Shares Shorted | 2.38% |
YUM News
Last Important Events
Yum! Brands Inc
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
Yum! Brands Inc
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Yum!Brands, Inc. operates as a service restaurant company. The company is headquartered in Louisville, Kentucky and currently employs 36,000 full-time employees. Brands, Inc. franchises or operates a system of approximately 53,000 restaurants in 157 countries and territories under the concepts of KFC, Taco Bell, Pizza Hut and The Habit Burger Grill. Its segments include The KFC Division, which includes its worldwide operations of the KFC concept; The Taco Bell Division, which includes its worldwide operations of the Taco Bell concept; The Pizza Hut Division, which includes its worldwide operations of the Pizza Hut concept, and The Habit Burger Grill Division, which includes its worldwide operations of the Habit Burger Grill concept. The company develops, operates or franchises a system of both traditional and non-traditional restaurants. KFC offer fried and non-fried chicken products. Taco Bell specializes in Mexican-style food products. Pizza Hut specializes in the sale of ready-to-eat pizza products. The Habit Burger Grill specializes in chargrilled burgers and sandwiches made-to-order over an open flame and topped with fresh ingredients.
Contact
IPO
Employees
Officers
The intrinsic value of one YUM stock under the Base Case scenario is 121.72 USD.
Compared to the current market price of 136.27 USD, Yum! Brands Inc is Overvalued by 11%.