Buffett Brain · Research note
Score updated 26 Sept 2026
YUM· Consumer Discretionary
Yum! Brands
Yum! Brands' strong operating margins and global franchise network suggest a moat, but high leverage and valuation concerns limit clarity.
Buffett fit
Partial fit
Owner
89
Durability
69
Management
91
Price
34
Score updated 26 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Yum! Brands entirely, we'd focus on leveraging its strong brand presence and expanding its franchise network, especially in emerging markets.
The full reasoning comes with a free account.
Yum! Brands' durability hinges on its brand strength and global reach.
The full reasoning comes with a free account.
Yum! Brands has been effective in returning capital to shareholders, with a dividend yield of 1.92% and a yield of 1.83%.
The full reasoning comes with a free account.
The current of 24.2 and EV/ of 21.0 suggest a rich valuation, with an earnings yield of 4.13% and yield of 3.91%, both below the 8-10% 'no-brainer' threshold.
The full reasoning comes with a free account.
Free account
Read the full Yum! Brands analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 131.5% is top-quintile in the Consumer Cyclical sector.
- 2Global presence with over 53,000 restaurant units.
- 3Strong brand portfolio with KFC, Pizza Hut, and Taco Bell.
- 4 of 31.4% indicates efficient capital use.
Concerns
7- 1Net debt/EBITDA of 3.98 suggests high .
- 2Current ratio of 0.65 indicates potential liquidity issues.
- 3 of 24.2 and EV/ of 21.0 imply a stretched valuation.
- 4 of 45.7% is below the sector's top-quintile cutoff.
Price history
$151+19.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Yum! Brands operates a global network of quick-service restaurants under brands like KFC, Pizza Hut, and Taco Bell. It earns revenue through franchise fees, company-owned restaurant sales, and licensing. The company has a massive scale with over 53,000 units worldwide, which helps in spreading fixed costs. The of 31.5% is top-quintile in its sector, indicating strong unit economics.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Consumer Discretionary
Free weekly email
Liked the read on YUM? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Yum! Brands
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in