# Yum! Brands, Inc. (YUM) — Stock CV

Yum! Brands, Inc. is a $39.5B consumer company. Revenue grew 10.3% over the last year, it keeps 25¢ of every dollar of sales as profit, and its net debt equals ~6.7 years of free cash flow. It trades at 17.9× earnings — near the lowest of its own history.

> As of the end of 2025, Yum Brands generated over $68 billion in systemwide sales from more than 63,000 restaurants across 155 markets, making it the world's second-largest restaurant firm by dollar sales.

## Identity

- **Ticker**: YUM
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Eating Places
- **Headquarters**: LOUISVILLE, KY
- **Employees**: 49 000
- **Website**: https://www.yum.com
- **Market cap**: $39.5B
- **Last price**: $144.82
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $8.72B
- **Net income**: $2.22B
- **Free cash flow**: $1.68B
- **Net debt**: $11.2B
- **P/E**: 17.9
- **Revenue growth (YoY)**: 10.3%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 69 |
| Growth | 32 |
| Profitability | 100 |
| Health | 21 |
| Quality | 75 |
| Moat | 100 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +10.3% YoY
- [x] Profitable — $2.22B TTM
- [x] Profit growing — +6.7% YoY
- [x] Generates cash — $1.68B TTM
- [ ] Debt under control — ~6.7y of cash flow to repay
- [x] Established company — $39.5B market cap
- [x] Not printing shares — -8.6% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 1.2 — distress
- [x] Pays a dividend — yield 2.04%
- [x] Valuation not extreme — P/E 17.9

## Experience (career milestones)

- **2020** — And 2021, Yum! acquired several technology companies
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $6.37B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **FY2016** — Best year on record: $1.62B net income
- **2014** — Yum! launched a number of additional restaurant test concepts, Super Chix, U.S
- **2012** — A KFC opened in Ramallah and became the first American fast food restaurant to operate in the West Bank
- **2003** — Yum! launched WingStreet as a hybrid combo unit with an existing Pizza Hut franchise
- **2002** — Yum! took its current name in 2002 after merging with Yorkshire Global Restaurants
- **May 8, 2002** — The merger was finalized on May 8, 2002, and the name change became effective on May 22, 2002
- **1997** — Yum! was formed as Tricon Global Restaurants in 1997 as a spin-off of PepsiCo
- **1997** — Yum! was created in 1997 as Tricon Global Restaurants, Inc. from PepsiCo's fast food division as the parent…
- **1992** — PepsiCo acquired California Pizza Kitchen
- **1977** — The spin-off consists of PepsiCo's former fast food restaurant division

## Strengths

- High gross margin (45.3%)
- Strongly profitable — 25.4% net margin
- Revenue growing 10.3% year over year
- Strong cash conversion — FCF is 19.3% of revenue
- Interest covered 5.2× by operating earnings

## Watch-outs

- Altman Z-Score 1.17 — elevated financial-distress risk
- Net debt would take ~7.6 years of free cash flow to repay
- Net debt equals ~6.7 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $6.58B | $1.57B | $1.48B |
| FY2022 | $6.84B | $1.32B | $1.15B |
| FY2023 | $7.08B | $1.60B | $1.32B |
| FY2024 | $7.55B | $1.49B | $1.43B |
| FY2025 | $8.21B | $1.56B | $1.64B |

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Source: https://stockcv.com/YUM — derived from company filings; may be delayed or incomplete. Information, not investment advice.