Yum BrandsMIL:1YUM 66 ROA % is 21.20% as of Mar. 2026, which is 14% below its 10-year median of 24.61. GuruFocus rates MIL:1YUM with a GF Score™ of 66/100 and a GF Value™ of €141.45 (Fairly Valued). The stock has 4 warning signs investors should review. Among 364 Restaurants companies, Yum Brands ranks better than 98.08% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Yum Brands's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,495 Mil.
Yum Brands's average Total Assets over the quarter that ended in Mar. 2026 was €7,051 Mil. Therefore, Yum Brands's annualized ROA % for the quarter that ended in Mar. 2026 was 21.20%.
The historical rank and industry rank for Yum Brands's ROA % or its related term are showing as below:
MIL:1YUM'
s ROA % Range Over the Past 10 Years
Min: 16.31 Med: 24.61 Max: 32.67
Current: 23.37
During the past 13 years, Yum Brands's highest ROA % was 32.67%. The lowest was 16.31%. And the median was 24.61%.
MIL:1YUM's ROA % is ranked better than 98.08% of 364
companies
in the Restaurants industry
Industry Median: 2.235
vs MIL:1YUM: 23.37
Yum Brands (MIL:1YUM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Yum Brands ROA % Related Terms
Yum Brands ROA % Historical Data
* Premium members only.
The historical data trend for Yum Brands's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum Brands's ROA % distribution charts can be found below:
* The bar in red indicates where Yum Brands's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Yum Brands (MIL:1YUM) has a ROA % of 21.20% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Yum Brands and its competitors. This is 14% below median its historical median of 24.61. Over the past decade, Yum Brands' ROA % has ranged from 16.31 to 32.67. According to the industry distribution chart, Yum Brands ranks #7 out of 364 companies in the Restaurants industry, placing it in the top 1.9%.
Is Yum Brands' ROA % too high?
Yum Brands' current ROA % of 21.20% is 14% below median its 10-year median of 24.61. Over the past 10 years, this metric has ranged from a low of 16.31 to a high of 32.67. The Restaurants industry median ROA % is 2.24. Yum Brands' value of 21.20% is 848.5% above this industry median. Based on the distribution chart, Yum Brands ranks #7 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 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' ROA % compare to CMG and DRI?
According to the Restaurants industry distribution chart, Yum Brands ranks #7 out of 364 companies for ROA %. This places Yum Brands in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.24. Yum Brands' value of 21.20% is 848.5% above this benchmark. Historically, Yum Brands' own ROA % has ranged from 16.31 to 32.67 over the past decade. While the company's 10-year median is 24.61 vs. the industry median of 2.24, 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 ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.24, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum Brands's current ROA % of 21.20% is 848.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Yum Brands and its competitors. For the Restaurants industry, the median ROA % is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum Brands's current ROA % is 21.20%, which is 14% below median its own 10-year median of 24.61. 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 €141.45, compared to a current price of €136.30 — trading 3.6% below its estimated fair value. The current ROA % is 21.20%, which is 14% below median its 10-year median of 24.61 and 848.5% above the Restaurants industry median of 2.24. Yum Brands' overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Yum Brands (MIL:1YUM), the current ROA % is 21.20% 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 3.6% below its estimated GF Value™ of €141.45.
GuruFocus considers Yum Brands to be Fairly Valued.
Key valuation signals for MIL:1YUM:
ROA %: 21.20% (14% below median its 10-year median of 24.61)
GF Value™: €141.45 vs. price of €136.30 (3.6% below fair value)
Industry Position: 848.5% above the Restaurants median (#7 of 364)
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.
66GF Score
Get the complete analysis for MIL:1YUM
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MIL:1YUM has been successfully added to your 
