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YUM:NYSEYum! Brands, Inc. Analysis

Data as of 2026-05-12 - not real-time

$150.29

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Yum! Brands delivers robust top‑line growth and healthy profitability, with revenue expanding at a double‑digit pace and operating margins comfortably above industry averages. The company generates strong operating cash flow, supports a stable dividend yielding around two percent, and maintains a solid payout ratio, yet a discounted cash flow model places intrinsic value well below the current market price, flagging an overvaluation concern.
On the technical front, the stock trades just above a key support level, while the 20‑day and 50‑day moving averages sit slightly higher, indicating a neutral trend. Momentum indicators show a bearish MACD crossover and an RSI that hints at modest oversold conditions, and volume is on the rise, suggesting potential short‑term buying interest. Recent earnings commentary underscores a solid start to the year and the rollout of cross‑brand value menus, reinforcing the longer‑term growth narrative.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • bearish MACD divergence
  • price hovering just above support
  • increasing trading volume

Medium Term

1–3 years
Neutral
Model confidence: 7/10

Key Factors

  • double‑digit revenue growth
  • strong operating cash flow and dividend sustainability
  • valuation gap between market price and DCF estimate

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • sustained global expansion and cross‑brand initiatives
  • stable dividend with attractive payout ratio
  • robust franchise model supporting long‑term cash generation

Key Metrics & Analysis

Financial Health

Revenue Growth15.20%
Profit Margin20.48%
P/E Ratio24.2
ROA23.30%
P/B Ratio-5.7
Op. Cash Flow$2.0B
Free Cash Flow$1.3B

Technical Analysis

TrendNeutral
RSI36.1
Support$149.39
Resistance$164.16
MA 20$158.07
MA 50$158.40
MA 200$152.33
MACDBearish
VolumeIncreasing
Fear & Greed Index88.61

Valuation

Fair Value$69.98
Target Price$174.54
Upside/Downside16.14%
GradeOvervalued
TypeGrowth
Dividend Yield2.00%

Risk Assessment

Beta0.20
Volatility22.44%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.