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Yum! Brands Inc YUM

Yum! Brands Inc scores excellent on business quality (7.5 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$144.82Oct 9, 2026
Business qualityExcellent
Next earningsNov 3, 2026, before the open
Insiders, 90 daysQuiet

Why it matters

  1. What Yum! Brands Inc does

    Yum! Brands operates global fast-food chains like KFC, Pizza Hut, and Taco Bell, generating revenue primarily from franchise fees and royalties paid by independent operators. The business is shifting toward heavier digital ordering integration and unit expansion across international markets to sustain system-wide sales growth.

  2. What it does best

    Yum! Brands scales a franchise-heavy asset-light model that produces an operating margin of 32.0%, outperforming peers like Chipotle at 15.1%. This fee-heavy structure insulates the company from restaurant-level cost inflation.

  3. The main risk

    Cash generation faces fresh doubts amid rising operational costs across franchise networks, which could pressure royalty streams if store-level traffic stalls.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin reaches 32.0% and FCF margin sits at 18.9%, expanding due to the asset-light franchise model where scaling adds high-margin royalty revenue with minimal capital expenditure.

MoatStrong

Global brand scale locks in massive franchisee networks and real estate advantages, placing operating margin in the top decile of its sector at the 97th percentile.

GrowthSteady

Revenue grew 8.8% to $8.7B, showing steady acceleration compared to prior annual periods.

Financial healthStrong

Net debt sits at $11.2B against free cash flow of $1.6B, supported by consistent cash generation getting stronger as revenue climbs to $8.7B.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on YUM

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is YUM a good business?

Yum! Brands Inc scores excellent on the Cluenex quality check (7.5 of 10), measured against its own industry. Profitability is strong, moat strong, growth steady and financial health strong.

Are insiders buying YUM?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does YUM report earnings?

Nov 3, 2026, before the open.

For members

See YUM today

  • Today's verdict on YUM, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Yum! Brands Inc (YUM)”, https://cluenex.com/stocks/yum/, data as of Oct 10, 2026.