YUM (Yum Brands) 1-Year Sharpe Ratio: 0.19 (As of Aug. 31, 2026)

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YUM Yum Brands Inc YUM
89 GF Score
Price $153.53
GF Value $170.10
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Yum Brands 1-Year Sharpe Ratio?

Yum Brands YUM -0.21% 89 1-Year Sharpe Ratio is 0.19 as of Aug. 31, 2026. GuruFocus rates YUM with a GF Score™ of 89/100 and a GF Value™ of $170.10 (Modestly Undervalued). The stock has 5 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-31), Yum Brands's 1-Year Sharpe Ratio is 0.19.

Yum Brands  (NYSE:YUM) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Yum Brands 1-Year Sharpe Ratio Related Terms

YUM vs CMG, DRI, YUMC: 1-Year Sharpe Ratio Comparison

For the Restaurants subindustry, Yum Brands's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Yum Brands's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Yum Brands's 1-Year Sharpe Ratio falls into.


YUM
89GF Score
Yum Brands Inc YUM
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Yum Brands 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 0.19 mean?
Yum Brands (YUM) has a 1-Year Sharpe Ratio of 0.19 as of Aug. 31, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Yum Brands and its competitors.
Is Yum Brands' 1-Year Sharpe Ratio too high?
Yum Brands' current 1-Year Sharpe Ratio is 0.19. Overall, Yum Brands has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' 1-Year Sharpe Ratio compare to CMG and DRI?
Yum Brands' 1-Year Sharpe Ratio of 0.19 can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Restaurants company?
A good 1-Year Sharpe Ratio depends on the Restaurants industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Yum Brands and its competitors. Yum Brands's current 1-Year Sharpe Ratio is 0.19. 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 $170.10, compared to a current price of $153.53 — trading 9.7% below its estimated fair value. The current 1-Year Sharpe Ratio is 0.19. Yum Brands' overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Yum Brands (YUM), the current 1-Year Sharpe Ratio is 0.19 as of Aug. 31, 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 $153.53 is trading 9.7% below its estimated GF Value™ of $170.10. GuruFocus considers Yum Brands to be Modestly Undervalued.

Key valuation signals for YUM:

  • 1-Year Sharpe Ratio: 0.19
  • GF Value™: $170.10 vs. price of $153.53 (9.7% below fair value)
  • GF Score™: 89/100 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.
89GF Score

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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$153.53
Price
$170.10
GF Value