Hide

FocusBar

FeedbackFeedback
Subscribe to Premium Member
71.6 (1y: +9%)
Market Cap 32.41 B P/E(ttm) 22.80
Enterprise Value 34.4 B P/B 14.90
YUM- NYSE (USA)
Yum Brands Inc
  • Currently 5/5
Business Predictability Rank: 5-Star
Back Testing Results:
Average gain of all 5-Star stocks: 12.1% per year.
% of Stocks that are in still loss if held for 10yrs: 3%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$71.60
Switch to:

GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry		 vs
history
Cash to Debt 0.264
YUM's Cash to Debt is ranked lower than
54% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.62 vs. YUM: 0.264 )
YUM' s 10-Year Cash to Debt Range
Min: 0.06   Max: 0.4
Current: 0.26
0.06
0.4
Equity to Asset 0.239
YUM's Equity to Asset is ranked lower than
65% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.56 vs. YUM: 0.239 )
YUM' s 10-Year Equity to Asset Range
Min: -0.14   Max: 0.28
Current: 0.24
-0.14
0.28
Interest Coverage 15.4
YUM's Interest Coverage is ranked higher than
65% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 8.80 vs. YUM: 15.4 )
YUM' s 10-Year Interest Coverage Range
Min: 5   Max: 15
Current: 15.4
5
15
F-Score: 4
Z-Score: 5.44
M-Score: -2.74
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry		 vs
history
Operating margin (%) 16.80
YUM's Operating margin (%) is ranked higher than
92% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 5.70 vs. YUM: 16.80 )
YUM' s 10-Year Operating margin (%) Range
Min: 11.6   Max: 16.8
Current: 16.8
11.6
16.8
Net-margin (%) 11.7
YUM's Net-margin (%) is ranked higher than
93% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 3.30 vs. YUM: 11.7 )
YUM' s 10-Year Net-margin (%) Range
Min: 5.8   Max: 11.7
Current: 11.7
5.8
11.7
ROE (%) 74.1
YUM's ROE (%) is ranked higher than
98% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 7.70 vs. YUM: 74.1 )
YUM' s 10-Year ROE (%) Range
Min: 46.4   Max: 473.1
Current: 74.1
46.4
473.1
ROA (%) 17.7
YUM's ROA (%) is ranked higher than
98% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 3.90 vs. YUM: 17.7 )
YUM' s 10-Year ROA (%) Range
Min: 10   Max: 17.7
Current: 17.7
10
17.7
ROC (Joel Greenblatt) (%) 71.60
YUM's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 20.20 vs. YUM: 71.60 )
YUM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 41.8   Max: 71.6
Current: 71.6
41.8
71.6
Revenue Growth (%) 6.5
YUM's Revenue Growth (%) is ranked higher than
89% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. YUM: 6.5 )
YUM' s 10-Year Revenue Growth (%) Range
Min: 0.6   Max: 10.1
Current: 6.5
0.6
10.1
EBITDA Growth (%) 8.4
YUM's EBITDA Growth (%) is ranked higher than
88% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. YUM: 8.4 )
YUM' s 10-Year EBITDA Growth (%) Range
Min: 2.3   Max: 11.6
Current: 8.4
2.3
11.6
EPS Growth (%) 11.1
YUM's EPS Growth (%) is ranked higher than
90% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. YUM: 11.1 )
YUM' s 10-Year EPS Growth (%) Range
Min: -1   Max: 11.3
Current: 11.1
-1
11.3
ยป YUM's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

YUM Guru Trades in Q2 2012

Ken Fisher 395,182 sh (New)
Robert Karr 276,000 sh (New)
Bruce Kovner 130,000 sh (New)
Steven Cohen 936,936 sh (+1906.03%)
Jim Simons 295,900 sh (+81.98%)
Tom Gayner 3,200 sh (unchged)
Tom Russo 2,200 sh (unchged)
Mario Gabelli 15,600 sh (unchged)
Paul Tudor Jones 150,000 sh (unchged)
Ken Heebner Sold Out
Louis Moore Bacon Sold Out
Manning & Napier Advisors, Inc Sold Out
Jeff Auxier 16,422 sh (-1.2%)
Ron Baron 31,998 sh (-2.91%)
Paul Tudor Jones 157,000 sh (-3.98%)
Jeremy Grantham 869,100 sh (-35.14%)
Pioneer Investments 4,124 sh (-86%)
» More
Q3 2012

YUM Guru Trades in Q3 2012

John Burbank 94,000 sh (New)
Robert Karr 564,450 sh (+104.51%)
Steven Cohen 1,453,696 sh (+55.15%)
Jeremy Grantham 949,971 sh (+9.31%)
Ron Baron 32,070 sh (+0.23%)
Mario Gabelli 15,600 sh (unchged)
Tom Russo 2,200 sh (unchged)
Ken Fisher Sold Out
Tom Gayner Sold Out
Paul Tudor Jones Sold Out
Pioneer Investments Sold Out
Jim Simons Sold Out
Bruce Kovner Sold Out
Jeff Auxier 15,522 sh (-5.48%)
» More
Q4 2012

YUM Guru Trades in Q4 2012

Pioneer Investments 32,250 sh (New)
Joel Greenblatt 6,116 sh (New)
Robert Karr 1,061,150 sh (+88%)
Ron Baron 43,145 sh (+34.53%)
Tom Russo 2,200 sh (unchged)
Mario Gabelli 15,600 sh (unchged)
Jeremy Grantham 1,831,771 sh (unchged)
Jeff Auxier 15,522 sh (unchged)
John Burbank Sold Out
Steven Cohen 21,045 sh (-98.55%)
» More
Q1 2013

YUM Guru Trades in Q1 2013

Jim Simons 566,100 sh (New)
Louis Moore Bacon 175,000 sh (New)
Pioneer Investments 61,404 sh (+90.4%)
Ron Baron 45,467 sh (+5.38%)
Tom Russo 2,200 sh (unchged)
Mario Gabelli 15,600 sh (unchged)
Jeff Auxier 15,522 sh (unchged)
Steven Cohen Sold Out
Robert Karr Sold Out
Jeremy Grantham 1,539,071 sh (-15.98%)
Joel Greenblatt 4,369 sh (-28.56%)
» More
» Details

Insider Trades

Latest Guru Trades with YUM

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 Reduce -28.56%0.01%$62.08 - $71.94 $ 71.68%4369
John Burbank 2012-12-31 Sold Out 0.28%$63.88 - $74.47 $ 71.63%0
Joel Greenblatt 2012-12-31 New Buy0.02%$63.88 - $74.47 $ 71.63%6116
Ron Baron 2012-12-31 Add 34.53%$63.88 - $74.47 $ 71.63%43145
John Burbank 2012-09-30 New Buy0.28%$61.95 - $68.51 $ 71.610%94000
Tom Gayner 2012-09-30 Sold Out 0.01%$61.95 - $68.51 $ 71.610%0
Mason Hawkins 2012-03-31 Sold Out 3.5%$58.57 - $71.44 $ 71.617%0
Ray Dalio 2012-03-31 Sold Out 0.02%$58.57 - $71.44 $ 71.617%0
Tom Gayner 2012-03-31 New Buy0.01%$58.57 - $71.44 $ 71.617%3200
Ron Baron 2012-03-31 Add 27.39%$58.57 - $71.44 $ 71.617%32956
Mason Hawkins 2011-12-31 Reduce -30.28%1.32%$48.12 - $59.58 $ 71.631%13017260
Steve Mandel 2011-12-31 Sold Out 0.82%$48.12 - $59.58 $ 71.631%0
Ron Baron 2011-12-31 Reduce -85.59%0.05%$48.12 - $59.58 $ 71.631%25870
Ray Dalio 2011-12-31 New Buy0.02%$48.12 - $59.58 $ 71.631%20848
Ruane Cunniff 2011-12-31 Sold Out 0.0023%$48.12 - $59.58 $ 71.631%0
Steve Mandel 2011-09-30 Reduce -72.08%2.18%$47.82 - $56.6 $ 71.635%2033052
Mason Hawkins 2011-09-30 Reduce -28.96%1.64%$47.82 - $56.6 $ 71.635%18671270
Ruane Cunniff 2011-09-30 Reduce -91.86%0.03%$47.82 - $56.6 $ 71.635%4479
Steve Mandel 2011-06-30 Reduce -30.23%1.29%$49.58 - $56.69 $ 71.634%7282003
Ron Baron 2011-06-30 New Buy0.05%$49.58 - $56.69 $ 71.634%166525
Ruane Cunniff 2011-06-30 Reduce -36.89%0.01%$49.58 - $56.69 $ 71.634%55019
George Soros 2011-06-30 Sold Out $49.58 - $56.69 $ 71.634%0
Ruane Cunniff 2011-03-31 Add 51.4%0.01%$46.4 - $52.85 $ 71.644%87181
George Soros 2011-03-31 Reduce -50.47%0.01%$46.4 - $52.85 $ 71.644%23925
Ruane Cunniff 2010-12-31 New Buy0.03%$46.42 - $51.69 $ 71.644%57585
George Soros 2010-12-31 Add 150.26%0.02%$46.42 - $51.69 $ 71.644%48300
Mason Hawkins 2010-09-30 Reduce -32.23%2.19%$38.53 - $46.58 $ 71.668%33044304
George Soros 2010-09-30 Reduce -70.89%0.02%$38.53 - $46.58 $ 71.668%19300
Steve Mandel 2010-06-30 Add 22.66%1.07%$39.2 - $43.94 $ 71.673%15053094
George Soros 2010-06-30 Add 1023.73%0.07%$39.2 - $43.94 $ 71.673%66300
PRIMECAP Management 2010-06-30 Sold Out 0.05%$39.2 - $43.94 $ 71.673%0
Steve Mandel 2010-03-31 Add 87.81%1.99%$32.72 - $38.64 $ 71.6103%12272645
Mason Hawkins 2010-03-31 Add 5.96%0.5%$32.72 - $38.64 $ 71.6103%50921881
George Soros 2010-03-31 New Buy$32.72 - $38.64 $ 71.6103%5900
Premium More recent guru trades are included for Premium Members only!!
ยป Financial Charts

Peter Lynch Chart

Top Ranked Articles about Yum Brands Inc

Taking a Bite Out of Yum! Brands Stock
October 16, 2012
Bruce Kovner,Ken Fisher - Taking A Bite Out Of Yum! Brands Stock
Today, Yum! Brands Inc. (YUM), parent company of such restaurant chains as KFC, Pizza Hut and Taco Bell, has reported growth in earnings, sales and profit in all of its divisions, including China, India, Yum! Restaurants International (YRI) and the U.S., according to an SEC report filed earlier, representing data for the end of this yearโ€™s third quarter. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 22.80
YUM's P/E(ttm) is ranked higher than
61% of the 227 Companies
in the Global Restaurants industry.

( Industry Median: 24.20 vs. YUM: 22.80 )
YUM' s 10-Year P/E(ttm) Range
Min: 6.43   Max: 23.93
Current: 22.8
6.43
23.93
P/B 14.90
YUM's P/B is ranked lower than
79% of the 259 Companies
in the Global Restaurants industry.

( Industry Median: 2.16 vs. YUM: 14.90 )
YUM' s 10-Year P/B Range
Min: 7.99   Max: 99.63
Current: 14.9
7.99
99.63
P/S 2.51
YUM's P/S is ranked lower than
67% of the 275 Companies
in the Global Restaurants industry.

( Industry Median: 0.93 vs. YUM: 2.51 )
YUM' s 10-Year P/S Range
Min: 0.5   Max: 2.74
Current: 2.51
0.5
2.74
PFCF 32.00
YUM's PFCF is ranked lower than
55% of the 210 Companies
in the Global Restaurants industry.

( Industry Median: 20.71 vs. YUM: 32.00 )
YUM' s 10-Year PFCF Range
Min: 18.1   Max: 120.99
Current: 32
18.1
120.99
EV-to-EBIT 16.4
YUM's EV-to-EBIT is ranked higher than
58% of the 232 Companies
in the Global Restaurants industry.

( Industry Median: 15.28 vs. YUM: 16.4 )
YUM' s 10-Year EV-to-EBIT Range
Min: 6.7   Max: 18.3
Current: 16.4
6.7
18.3
PEG 2.4
YUM's PEG is ranked higher than
59% of the 90 Companies
in the Global Restaurants industry.

( Industry Median: 1.82 vs. YUM: 2.4 )
YUM' s 10-Year PEG Range
Min: 1.08   Max: 5.77
Current: 2.4
1.08
5.77
Shiller P/E 27.9
YUM's Shiller P/E is ranked lower than
100% of the Companies
in the Global Restaurants industry.

( Industry Median: vs. YUM: 27.9 )
YUM' s 10-Year Shiller P/E Range
Min: 15.71   Max: 31.87
Current: 27.9
15.71
31.87

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.80
YUM's Dividend Yield is ranked higher than
75% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.71 vs. YUM: 1.80 )
YUM' s 10-Year Dividend Yield Range
Min: 0.22   Max: 2.94
Current: 1.8
0.22
2.94
Dividend Payout 0.3946
YUM's Dividend Payout is ranked higher than
70% of the 134 Companies
in the Global Restaurants industry.

( Industry Median: 0.40 vs. YUM: 0.3946 )
YUM' s 10-Year Dividend Payout Range
Min: 0.08   Max: 0.38
Current: 0.39
0.08
0.38
Dividend growth (3y) 11.1
YUM's Dividend growth (3y) is ranked higher than
95% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. YUM: 11.1 )
YUM' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 51.4
Current: 11.1
0
51.4
Yield on cost (5-Year) 3.64
YUM's Yield on cost (5-Year) is ranked higher than
88% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.68 vs. YUM: 3.64 )
YUM' s 10-Year Yield on cost (5-Year) Range
Min: 0.44   Max: 5.94
Current: 3.64
0.44
5.94
Share Buyback Rate 0.5
YUM's Share Buyback Rate is ranked higher than
92% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. YUM: 0.5 )
YUM' s 10-Year Share Buyback Rate Range
Min: 4.8   Max: -0.6
Current: 0.5

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 87.3
YUM's Price/Net Current Asset Value is ranked lower than
56% of the 199 Companies
in the Global Restaurants industry.

( Industry Median: 42.40 vs. YUM: 87.3 )
YUM' s 10-Year Price/Net Current Asset Value Range
Min: 20.1   Max: 93.3
Current: 87.3
20.1
93.3
Price/Tangible Book 75.4
YUM's Price/Tangible Book is ranked lower than
95% of the 219 Companies
in the Global Restaurants industry.

( Industry Median: 2.10 vs. YUM: 75.4 )
YUM' s 10-Year Price/Tangible Book Range
Min: 20.7   Max: 153.1
Current: 75.4
20.7
153.1
Price/DCF (Projected) 2.6
YUM's Price/DCF (Projected) is ranked lower than
59% of the 109 Companies
in the Global Restaurants industry.

( Industry Median: 1.70 vs. YUM: 2.6 )
YUM' s 10-Year Price/DCF (Projected) Range
Min: 1.7   Max: 3.9
Current: 2.6
1.7
3.9
Price/Median PS Value 1.6
YUM's Price/Median PS Value is ranked lower than
67% of the 257 Companies
in the Global Restaurants industry.

( Industry Median: 1.20 vs. YUM: 1.6 )
YUM' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.5
Current: 1.6
0.4
1.5
Price/Peter Lynch Fair Value 2.4
YUM's Price/Peter Lynch Fair Value is ranked lower than
53% of the 62 Companies
in the Global Restaurants industry.

( Industry Median: 1.70 vs. YUM: 2.4 )
YUM' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.2   Max: 3.2
Current: 2.4
1.2
3.2
Price/Graham Number 8.6
YUM's Price/Graham Number is ranked lower than
94% of the 191 Companies
in the Global Restaurants industry.

( Industry Median: 1.70 vs. YUM: 8.6 )
YUM' s 10-Year Price/Graham Number Range
Min: 4.2   Max: 12.5
Current: 8.6
4.2
12.5
Earnings Yield (Greenblatt) 6.10
YUM's Earnings Yield (Greenblatt) is ranked higher than
66% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 5.40 vs. YUM: 6.10 )
YUM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.5   Max: 15
Current: 6.1
5.5
15
Forward Rate of Return (Yacktman) 11.81
YUM's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. YUM: 11.81 )
YUM' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.6   Max: 16.9
Current: 11.81
4.6
16.9

Business Description

YUM! Brands, Inc. was incorporated under the laws of the state of North Carolina in 1997. YUM is a restaurant company in terms of system restaurants with approximately 37,000 restaurants in more than 120 countries and territories operating under the KFC, Pizza Hut or Taco Bell brands. In December of 2011 it sold its Long John Silver's and A&W All American Food Restaurants brands to key franchise leaders and strategic investors in separate transactions. In addition, the Company owns non-controlling interests in Chinese entities who operate in a manner similar to KFC franchisees, as well as a non-controlling interest in Little Sheep Group Ltd, a casual dining concept headquartered in Inner Mongolia, China. On February 1, 2012, it acquired a controlling interest in Little Sheep. The Company's restaurant brands - KFC, Pizza Hut and Taco Bell - are the global leaders in the chicken, pizza and Mexican-style food categories, respectively. YUM's business consists of three reporting segments: China Division, YUM Restaurants International and the United States. The China Division, based in Shanghai, China, comprises approximately 4,500 system restaurants, primarily Company-owned KFCs and Pizza Huts. The International Division, based in Dallas, Texas, comprises approximately 14,500 system restaurants, primarily franchised KFCs and Pizza Huts, operating in over 120 countries outside the U.S. The Company and its franchisees also operate multibrand units, primarily in the U.S., where two or more of the Concepts are operated in a single unit. Through its Concepts, YUM develops, operates, franchises and licenses a worldwide system of both traditional and non-traditional QSR restaurants. Traditional units feature dine-in, carryout and, in some instances, drive-thru or delivery services. The Company's Concepts, including Concept units operated by its franchisees, are substantial purchasers of a number of food and paper products, equipment and other restaurant supplies. The principal items purchased include chicken, cheese, beef and pork products, paper and packaging materials. The Company and its Concepts own numerous registered trademarks and service marks. The Company believes that many of these marks, including its Kentucky Fried Chicken, KFC, Pizza Hut and Taco Bell marks, have significant value and are materially important to its business. The retail food industry, in which the Company competes, is made up of supermarkets, supercenters, warehouse stores, convenience stores, coffee shops, snack bars, delicatessens and restaurants, and is competitive with respect to food quality, price, service, convenience, location and concept. Each of the Concepts compete with international, national and regional restaurant chains as well as locally-owned restaurants, not only for customers, but also for management and hourly personnel, suitable real estate sites and qualified franchisees. The Company is subject to various federal, state and local laws affec
Company Website
SEC Reports
Industry: Restaurants
Compare:BH, CMG, MCD, DIN, SBUX
Traded in other countries:TGR.Germany
ยป More Articles for YUM

Headlines

Articles On GuruFocus.com
comment on YUM May 17 2013 
Four Select Dividend Increases of Note May 06 2013 
Kfc, Pizza hut, Taco Apr 29 2013 
YUM OWNS LOTS OF TAK Apr 14 2013 
Is Yum! Brands a Short? Mar 19 2013 
Starbucks' Secret Weapon Mar 19 2013 
Costco Continues to Make All Time Highs and YUM Brands Tries to Rebound in China Mar 12 2013 
Valuation Is Just as Important for Dividend Investing Mar 05 2013 
Predictibility Rank Mar 03 2013 
Wendy's: Great Fast Food, Bad Investment Feb 17 2013 

More From Our Partners
Yum!'s Comps Dip Yet Again - Analyst Blog Jun 12 2013 - ZACKS

Personalized Checklist





Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK