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Yum BrandsYUM -1.20%84 Earnings Yield (Joel Greenblatt) % is 4.91% as of Jun. 2026, which is 4% above its 10-year median of 4.71. GuruFocus rates YUM with a GF Score™ of 84/100 and a GF Value™ of $170.22 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 367 Restaurants companies, Yum Brands ranks better than 56.95% on this metric.
Yum Brands's Enterprise Value for the quarter that ended in Jun. 2026 was $55,243 Mil.
Yum Brands's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $2,710 Mil. Yum Brands's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 4.91%.
The historical rank and industry rank for Yum Brands's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
YUM'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.36 Med: 4.71 Max: 8.31
Current: 5.14
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Yum Brands was 8.31%. The lowest was 3.36%. And the median was 4.71%.
YUM's Earnings Yield (Joel Greenblatt) % is ranked better than 56.95% of 367
companies
in the Restaurants industry
Industry Median: 3.93
vs YUM: 5.14
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Yum Brands's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 9.58%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Yum Brands Earnings Yield (Joel Greenblatt) % Related Terms
Yum Brands Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Yum Brands's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Restaurants subindustry, Yum Brands's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Yum Brands Earnings Yield (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Yum Brands's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Yum Brandss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Yum Brands's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,710 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 4.91% mean?
Yum Brands (YUM) has a Earnings Yield (Joel Greenblatt) % of 4.91% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Yum Brands and its competitors. This is near median its historical median of 4.71. Over the past decade, Yum Brands' Earnings Yield (Joel Greenblatt) % has ranged from 3.36 to 8.31. According to the industry distribution chart, Yum Brands ranks #158 out of 367 companies in the Restaurants industry, placing it in the top 43.1%.
Is Yum Brands' Earnings Yield (Joel Greenblatt) % too high?
Yum Brands' current Earnings Yield (Joel Greenblatt) % of 4.91% is near median its 10-year median of 4.71. Over the past 10 years, this metric has ranged from a low of 3.36 to a high of 8.31. The Restaurants industry median Earnings Yield (Joel Greenblatt) % is 3.93. Yum Brands' value of 4.91% is 24.9% above this industry median. Based on the distribution chart, Yum Brands ranks #158 out of 367 companies in the Restaurants industry, which is above the industry midpoint. Overall, Yum Brands has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' Earnings Yield (Joel Greenblatt) % compare to CMG and DRI?
According to the Restaurants industry distribution chart, Yum Brands ranks #158 out of 367 companies for Earnings Yield (Joel Greenblatt) %. This puts Yum Brands in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.93. Yum Brands' value of 4.91% is 24.9% above this benchmark. Historically, Yum Brands' own Earnings Yield (Joel Greenblatt) % has ranged from 3.36 to 8.31 over the past decade. While the company's 10-year median is 4.71 vs. the industry median of 3.93, Yum Brands has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Restaurants company?
The median Earnings Yield (Joel Greenblatt) % among Restaurants companies is 3.93, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum Brands's current Earnings Yield (Joel Greenblatt) % of 4.91% is 24.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Yum Brands and its competitors. For the Restaurants industry, the median Earnings Yield (Joel Greenblatt) % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum Brands's current Earnings Yield (Joel Greenblatt) % is 4.91%, which is near median its own 10-year median of 4.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum Brands stock overvalued right now?
Based on GuruFocus' analysis, Yum Brands (YUM) is currently considered Modestly Undervalued. The stock's GF Value™ is $170.22, compared to a current price of $150.71 — trading 11.5% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 4.91%, which is near median its 10-year median of 4.71 and 24.9% above the Restaurants industry median of 3.93. Yum Brands' overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Yum Brands (YUM), the current Earnings Yield (Joel Greenblatt) % is 4.91% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Yum Brands (YUM) Overvalued in 2026?
Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued.
The current stock price of $150.71 is trading 11.5% below its estimated GF Value™ of $170.22.
GuruFocus considers Yum Brands to be Modestly Undervalued.
Key valuation signals for YUM:
Earnings Yield (Joel Greenblatt) %: 4.91% (near median its 10-year median of 4.71)
GF Value™: $170.22 vs. price of $150.71 (11.5% below fair value)
Industry Position: 24.9% above the Restaurants median (#158 of 367)
No single metric tells the full story. See the YUM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
As of the end of 2025, Yum Brands generated over $68 billion in systemwide sales from more than 63,000 restaurants across 155 markets, making it the world's second-largest restaurant firm by dollar sales. Its portfolio includes KFC (33,897 stores), Pizza Hut (19,974), Taco Bell (9,030), and Habit Burger (384), with 72% of locations in international markets. As 97% of its portfolio is franchised, Yum's business model is tilted toward recurring franchise royalties and marketing contributions (64% of revenue), with the balance derived from sales at company-owned locations. The company traces its roots to a 1997 spinoff of PepsiCo's restaurant assets.
84GF Score
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Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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