Yum BrandsMIL:1YUM 65 Net Margin % is 20.98% as of Mar. 2026, which is 8% below its 10-year median of 22.69. GuruFocus rates MIL:1YUM with a GF Score™ of 65/100 and a GF Value™ of €145.87 (Fairly Valued). The stock has 4 warning signs investors should review. Among 365 Restaurants companies, Yum Brands ranks better than 96.71% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Yum Brands's Net Income for the
three
months ended in Mar. 2026 was €374 Mil. Yum Brands's Revenue for the
three
months ended in Mar. 2026 was €1,781 Mil. Therefore, Yum Brands's net margin for the quarter that ended in Mar. 2026 was 20.98%.
The historical rank and industry rank for Yum Brands's Net Margin % or its related term are showing as below:
MIL:1YUM'
s Net Margin % Range Over the Past 10 Years
Min: 15.99 Med: 22.69 Max: 27.11
Current: 20.48
MIL:1YUM's Net Margin % is ranked better than 96.71% of 365
companies
in the Restaurants industry
Industry Median: 2.12
vs MIL:1YUM: 20.48
Yum Brands (MIL:1YUM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Yum Brands Net Margin % Related Terms
Yum Brands Net Margin % Historical Data
* Premium members only.
The historical data trend for Yum Brands's Net Margin % 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.
MIL:1YUM vs CMG, DRI, YUMC: Net Margin % Comparison
For the Restaurants subindustry, Yum Brands's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Net Margin % distribution charts can be found below:
* The bar in red indicates where Yum Brands's Net Margin % falls into.
* 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.
Yum Brands (MIL:1YUM) has a Net Margin % of 20.98% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Yum Brands and its competitors. This is near median its historical median of 22.69. Over the past decade, Yum Brands' Net Margin % has ranged from 15.99 to 27.11. According to the industry distribution chart, Yum Brands ranks #12 out of 365 companies in the Restaurants industry, placing it in the top 3.3%.
Is Yum Brands' Net Margin % too high?
Yum Brands' current Net Margin % of 20.98% is near median its 10-year median of 22.69. Over the past 10 years, this metric has ranged from a low of 15.99 to a high of 27.11. The Restaurants industry median Net Margin % is 2.12. Yum Brands' value of 20.98% is 889.6% above this industry median. Based on the distribution chart, Yum Brands ranks #12 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Yum Brands has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' Net Margin % compare to CMG and DRI?
According to the Restaurants industry distribution chart, Yum Brands ranks #12 out of 365 companies for Net Margin %. This places Yum Brands in the top 3% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.12. Yum Brands' value of 20.98% is 889.6% above this benchmark. Historically, Yum Brands' own Net Margin % has ranged from 15.99 to 27.11 over the past decade. While the company's 10-year median is 22.69 vs. the industry median of 2.12, 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.12, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum Brands's current Net Margin % of 20.98% is 889.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Yum Brands and its competitors. For the Restaurants industry, the median Net Margin % is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum Brands's current Net Margin % is 20.98%, which is near median its own 10-year median of 22.69. 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 (MIL:1YUM) is currently considered Fairly Valued. The stock's GF Value™ is €145.87, compared to a current price of €136.30 — trading 6.6% below its estimated fair value. The current Net Margin % is 20.98%, which is near median its 10-year median of 22.69 and 889.6% above the Restaurants industry median of 2.12. Yum Brands' overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Yum Brands (MIL:1YUM), the current Net Margin % is 20.98% as of Mar. 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 (MIL:1YUM) Overvalued in 2026?
Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued.
The current stock price of €136.30 is trading 6.6% below its estimated GF Value™ of €145.87.
GuruFocus considers Yum Brands to be Fairly Valued.
Key valuation signals for MIL:1YUM:
Net Margin %: 20.98% (near median its 10-year median of 22.69)
GF Value™: €145.87 vs. price of €136.30 (6.6% below fair value)
Industry Position: 889.6% above the Restaurants median (#12 of 365)
No single metric tells the full story. See the MIL:1YUM 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.
65GF Score
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