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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Yum Brands's Sloan Ratio for the quarter that ended in Jun. 2026 was 13.55%.
As of Jun. 2026, Yum Brands has a Sloan Ratio of 13.55%, indicating there is a warning stage of accrual build up.
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Yum Brands has a Sloan Ratio of 13.55%, indicating there is a warning stage of accrual build up.
Yum Brands Sloan Ratio % Related Terms
Yum Brands Sloan Ratio % Historical Data
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The historical data trend for Yum Brands's Sloan Ratio % 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 Sloan Ratio %, along with its competitors' market caps and Sloan 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 Sloan Ratio % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Yum Brands's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Yum Brands's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Yum Brands's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 397 (Sep. 2025 ) + 535 (Dec. 2025 ) + 432 (Mar. 2026 ) + 853 (Jun. 2026 ) = $2,217 Mil.
Yum Brands's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 543 (Sep. 2025 ) + 617 (Dec. 2025 ) + 416 (Mar. 2026 ) + 507 (Jun. 2026 ) = $2,083 Mil.
Yum Brands's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -78 (Sep. 2025 ) + -795 (Dec. 2025 ) + -80 (Mar. 2026 ) + -89 (Jun. 2026 ) = $-1,042 Mil.
* 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 (YUM) has a Sloan Ratio % of 13.55% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Yum Brands and its competitors.
Is Yum Brands' Sloan Ratio % too high?
Yum Brands' current Sloan Ratio % is 13.55%. Overall, Yum Brands has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' Sloan Ratio % compare to CMG and DRI?
Yum Brands' Sloan Ratio % of 13.55% 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 Sloan Ratio % for a Restaurants company?
A good Sloan Ratio % depends on the Restaurants industry context. However, Sloan 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Yum Brands and its competitors. Yum Brands's current Sloan Ratio % is 13.55%. 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 Fairly Valued. The stock's GF Value™ is $170.10, compared to a current price of $154.15 — trading 9.4% below its estimated fair value. The current Sloan Ratio % is 13.55%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Yum Brands (YUM), the current Sloan Ratio % is 13.55% as of Jun. 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 $154.15 is trading 9.4% below its estimated GF Value™ of $170.10.
GuruFocus considers Yum Brands to be Fairly Valued.
Key valuation signals for YUM:
Sloan Ratio %: 13.55%
GF Value™: $170.10 vs. price of $154.15 (9.4% below fair value)
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.
89GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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