Question 1

What brands does Yum! Brands own?

Accepted Answer

Yum! Brands operates four restaurant chains: KFC (approximately 30,000 locations), Pizza Hut (approximately 18,000 locations), Taco Bell (approximately 9,000 locations), and The Habit Burger Grill (approximately 370 locations). Together they form the world's largest restaurant company by unit count with roughly 56,000 locations across 155+ countries.

Question 2

Is YUM stock overvalued at 30x earnings?

Accepted Answer

YUM's 30.3x trailing P/E is above the S&P 500 average but consistent with other franchise-heavy restaurant operators. The premium reflects YUM's asset-light model, which generates $1.64 billion in annual free cash flow with minimal capital requirements. On 2028 estimated earnings of approximately $9.95, YUM trades at roughly 16.9x — more reasonable for a company expected to grow EPS at 14% annually.

Question 3

Why does Yum! Brands have negative book value?

Accepted Answer

YUM's negative stockholders' equity (book value of -$26.35 per share) is a deliberate result of its aggressive share repurchase program. Over the years, YUM has bought back more stock than it has accumulated in retained earnings, a strategy common among franchise-model companies like McDonald's and Domino's that generate strong cash flow but hold few physical assets on their balance sheet.

Question 4

What is YUM's dividend yield and is it sustainable?

Accepted Answer

YUM currently yields approximately 0.47%, with a Q4 2025 payout ratio of 36.8%. The company paid $789 million in total dividends during fiscal 2025 and has increased its dividend for over 20 consecutive years. With $1.64 billion in annual free cash flow, the dividend is well-covered and leaves room for continued increases alongside the $552 million annual share buyback program.

Question 5

When does YUM report next earnings?

Accepted Answer

Yum! Brands is scheduled to report Q1 2026 earnings on April 29, 2026. This will be the first quarter to show whether the strong Q4 2025 momentum — which included $2.514 billion in revenue and $1.92 EPS — has carried into the new fiscal year.

Quarter	Revenue	Net Income	EPS
2025-12-31	$2.51B	$535M	$1.92
2025-09-30	$1.98B	$397M	$1.43
2025-06-30	$1.93B	$374M	$1.34
2025-03-31	$1.79B	$253M	$0.90

Yum! Brands, Inc.

Price History (1 Year)

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