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Yum BrandsYUM +0.09%90 Return-on-Tangible-Asset is 27.30% as of Mar. 2026, which is 3% below its 10-year median of 28.11. GuruFocus rates YUM with a GF Score™ of 90/100 and a GF Value™ of $169.13 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 364 Restaurants companies, Yum Brands ranks better than 97.53% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Yum Brands's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,728 Mil. Yum Brands's average total tangible assets for the quarter that ended in Mar. 2026 was $6,330 Mil. Therefore, Yum Brands's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 27.30%.
The historical rank and industry rank for Yum Brands's Return-on-Tangible-Asset or its related term are showing as below:
YUM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 19.3 Med: 28.11 Max: 38.8
Current: 29.18
During the past 13 years, Yum Brands's highest Return-on-Tangible-Asset was 38.80%. The lowest was 19.30%. And the median was 28.11%.
YUM's Return-on-Tangible-Asset is ranked better than 97.53% of 364
companies
in the Restaurants industry
Industry Median: 2.36
vs YUM: 29.18
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Yum Brands Return-on-Tangible-Asset Related Terms
Yum Brands Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Yum Brands's Return-on-Tangible-Asset 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.
YUM vs CMG, DRI, YUMC: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, Yum Brands's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Yum Brands's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 27.30% mean?
Yum Brands (YUM) has a Return-on-Tangible-Asset of 27.30% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Yum Brands and its competitors. This is near median its historical median of 28.11. Over the past decade, Yum Brands' Return-on-Tangible-Asset has ranged from 19.30 to 38.80. According to the industry distribution chart, Yum Brands ranks #9 out of 364 companies in the Restaurants industry, placing it in the top 2.5%.
Is Yum Brands' Return-on-Tangible-Asset too high?
Yum Brands' current Return-on-Tangible-Asset of 27.30% is near median its 10-year median of 28.11. Over the past 10 years, this metric has ranged from a low of 19.30 to a high of 38.80. The Restaurants industry median Return-on-Tangible-Asset is 2.36. Yum Brands' value of 27.30% is 1056.8% above this industry median. Based on the distribution chart, Yum Brands ranks #9 out of 364 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 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' Return-on-Tangible-Asset compare to CMG and DRI?
According to the Restaurants industry distribution chart, Yum Brands ranks #9 out of 364 companies for Return-on-Tangible-Asset. This places Yum Brands in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.36. Yum Brands' value of 27.30% is 1056.8% above this benchmark. Historically, Yum Brands' own Return-on-Tangible-Asset has ranged from 19.30 to 38.80 over the past decade. While the company's 10-year median is 28.11 vs. the industry median of 2.36, 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 Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.36, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum Brands's current Return-on-Tangible-Asset of 27.30% is 1056.8% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Yum Brands and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum Brands's current Return-on-Tangible-Asset is 27.30%, which is near median its own 10-year median of 28.11. 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 $169.13, compared to a current price of $149.06 — trading 11.9% below its estimated fair value. The current Return-on-Tangible-Asset is 27.30%, which is near median its 10-year median of 28.11 and 1056.8% above the Restaurants industry median of 2.36. Yum Brands' overall GF Score™ is 90/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Yum Brands (YUM), the current Return-on-Tangible-Asset is 27.30% 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 (YUM) Overvalued in 2026?
Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued.
The current stock price of $149.06 is trading 11.9% below its estimated GF Value™ of $169.13.
GuruFocus considers Yum Brands to be Modestly Undervalued.
Key valuation signals for YUM:
Return-on-Tangible-Asset: 27.30% (near median its 10-year median of 28.11)
GF Value™: $169.13 vs. price of $149.06 (11.9% below fair value)
Industry Position: 1056.8% above the Restaurants median (#9 of 364)
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.
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