NYSE:YUM
YUM BRANDS INC
A global leader in quick-service restaurants with a resilient franchise model generating over $8 billion in annual revenue.
Key Metrics
Investment Thesis
Bull Case
Investors may favor YUM due to its consistent revenue growth trajectory, robust free cash flow generation of over $2 billion which funds share buybacks and dividends, and the potential for continued margin expansion as the franchise system scales globally with minimal capital expenditure requirements for the parent company.
Bear Case
Concerns surrounding a negative shareholders' equity position of -$7.33B and significant accumulated other comprehensive income loss suggest underlying leverage risks that could limit financial flexibility if interest rates remain elevated or if debt repayments exceed new issuances as seen in recent cash flow data.
About YUM BRANDS INC
Yum! Brands Inc. operates as a global restaurant holding company owning and operating KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and Golden Corral in over 150 countries, serving millions of customers daily with its diversified portfolio of quick-service and casual dining brands.
Analysis
Management Discussion
The company delivered strong financial performance with revenue growing to $8.21B in 2025 compared to $6.84B in 2022, while net income stabilized at $1.56B after a dip in 2024, reflecting effective cost management and pricing power despite a challenging macroeconomic environment.
Industry Overview
The global quick-service restaurant industry is highly competitive with low barriers to entry but high success rates for established brands, driven by consumer demand for affordable, convenient dining options and rapid adoption of digital ordering platforms across emerging markets.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.84B | $7.08B | $7.55B | $8.21B |
| Cost of Revenue | $1.75B | $1.77B | $2.12B | $2.48B |
| Gross Profit | $5.10B | $5.30B | $5.43B | $5.73B |
| Operating Expenses | $2.91B | $2.98B | $3.03B | $3.16B |
| Operating Income | $2.19B | $2.32B | $2.40B | $2.57B |
| G&A | $1.14B | $1.19B | $1.18B | $1.26B |
| Stock-Based Comp | $84.0M | $95.0M | $69.0M | $70.0M |
| D&A | $146.0M | $153.0M | $175.0M | $206.0M |
| Amortization | $68.0M | $74.0M | $82.0M | $98.0M |
| Other OpEx | $1.77B | $1.79B | $1.84B | $1.90B |
| Non-Operating Income | $-525.0M | $-500.0M | $-503.0M | $-497.0M |
| Pre-Tax Income | $1.66B | $1.82B | $1.90B | $2.08B |
| Income Tax | $337.0M | $221.0M | $414.0M | $518.0M |
| Continuing Ops | $1.32B | $1.60B | $1.49B | $1.56B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.32B | $1.60B | $1.49B | $1.56B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.32B | $1.60B | $1.49B | $1.56B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.61B | $1.61B | $1.87B | $2.04B |
| Cash & Equivalents | $367.0M | $512.0M | $616.0M | $709.0M |
| Marketable Securities | — | — | $91.0M | $0 |
| Prepaid Expenses | $594.0M | $360.0M | $480.0M | $490.0M |
| Other Current Assets | $648.0M | $737.0M | $684.0M | $841.0M |
| Long-Term Assets | $4.24B | $4.62B | $4.86B | $6.16B |
| PP&E (Net) | $1.17B | $1.20B | $1.30B | $1.60B |
| Intangibles | $354.0M | $377.0M | $416.0M | $909.0M |
| Goodwill | $638.0M | $642.0M | $736.0M | $969.0M |
| Other LT Assets | $2.07B | $2.41B | $2.40B | $2.67B |
| Total Assets | $5.85B | $6.23B | $6.73B | $8.20B |
| Current Liabilities | $1.67B | $1.28B | $1.27B | $1.52B |
| Taxes Payable | $16.0M | $55.0M | $31.0M | $46.0M |
| Other Current Liab | $1.65B | $1.22B | $1.24B | $1.47B |
| Long-Term Liabilities | $13.06B | $12.81B | $13.11B | $14.01B |
| Total Liabilities | $14.72B | $14.09B | $14.38B | $15.52B |
| Shareholders' Equity | $-8.88B | $-7.86B | $-7.65B | $-7.33B |
| Retained Earnings | $-8.51B | $-7.62B | $-7.26B | $-7.01B |
| AOCI | $-369.0M | $-302.0M | $-392.0M | $-311.0M |
| Total L&E | $5.85B | $6.23B | $6.73B | $8.20B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.32B | $1.60B | $1.49B | $1.56B |
| Non-Cash Adjustments | $41.0M | $-111.0M | $159.0M | $342.0M |
| Working Capital Changes | $61.0M | $117.0M | $44.0M | $109.0M |
| Cash from Operations | $1.43B | $1.60B | $1.69B | $2.01B |
| Capital Expenditures | $279.0M | $285.0M | $257.0M | $371.0M |
| Cash from Investing | $-202.0M | $-107.0M | $-422.0M | $-1.00B |
| Debt Issuances | $999.0M | $0 | $237.0M | $1.49B |
| Debt Repayments | $699.0M | $397.0M | $479.0M | $966.0M |
| Share Buybacks | $1.20B | $50.0M | $441.0M | $552.0M |
| Dividends Paid | $649.0M | $678.0M | $752.0M | $789.0M |
| Cash from Financing | $-1.32B | $-1.43B | $-1.16B | $-924.0M |
| FX Effect | $-26.0M | $10.0M | $-21.0M | $32.0M |
| Net Change in Cash | $-124.0M | $77.0M | $83.0M | $116.0M |
| Beginning Cash | $771.0M | $647.0M | $724.0M | $807.0M |
| Ending Cash | $647.0M | $724.0M | $807.0M | $923.0M |
Frequently Asked Questions
How does YUM BRANDS INC make money?
The company generates revenue primarily through three main segments: KFC (focusing on fried chicken), Pizza Hut (pizza and sides), and Taco Bell (Mexican-inspired fast food), supported by the Habit Burger Grill and Golden Corral brands which contribute to its diversified geographic and demographic reach.
What are the main risks for YUM?
Key risks include inflationary pressure on input costs affecting margin expansion, regulatory scrutiny regarding labor practices and minimum wage increases in key markets like the US, potential health-related consumer shifts impacting core menu items like fried chicken, and currency headwinds from international operations.
What is YUM's competitive advantage?
Yum! Brands possesses a powerful global real estate footprint, an extensive proprietary data network that drives menu innovation and marketing efficiency, and a high-yield franchise model where third-party operators bear significant capital costs while the parent company collects royalties and fees.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.