YUM (Yum Brands) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

YUM Yum Brands Inc YUM
91 GF Score
Price $153.28
GF Value $169.02
Valuation Fairly Valued
! 5 Warning Signs
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What is Yum Brands Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Yum Brands is: Low Risk: Strong fundamentals, worth long-term holding.

Yum Brands  (NYSE:YUM) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Yum Brands Risk Assessment Related Terms

YUM vs CMG, DRI, YUMC: Risk Assessment Comparison

For the Restaurants subindustry, Yum Brands's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Yum Brands's Risk Assessment falls into.


YUM
91GF Score
Yum Brands Inc YUM
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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Is Yum Brands (YUM) Overvalued in 2026?

Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued. The current stock price of $153.28 is trading 9.3% below its estimated GF Value™ of $169.02. GuruFocus considers Yum Brands to be Fairly Valued.

Key valuation signals for YUM:

  • Risk Assessment:
  • GF Value™: $169.02 vs. price of $153.28 (9.3% below fair value)
  • GF Score™: 91/100 with 5 warning signs

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.

Yum Brands Business Description

Address 1441 Gardiner Lane, Louisville, KY, USA, 40213
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.
91GF Score

Get the complete analysis for YUM

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$153.28
Price
$169.02
GF Value