Skip to Content

Yum Brands Inc - Stock Quote YUM

Rating as of

Morningstar's Yum Brands Inc Stock Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Consumer Resilience and International Strength Encouraging for Yum Brands; Shares Slightly Cheap

Sean Dunlop Equity Analyst

Analyst Note

| Sean Dunlop |

Wide-moat Yum Brands posted mixed first-quarter results, with sales ($1.55 billion) and adjusted earnings ($1.05) clocking in below our forecasts for $1.69 billion and $1.21, respectively. This was exclusively driven by exogenous events—sales softness in China attributable to omicron-induced lockdowns and a modest profit drag from suspended Russian operations—and the long-term prospects of the business continue to align with our expectations. As we offset near-term pressure in China, the (probable) loss of about 3% of operating income from those Russian stores, and better-than-expected unit growth figures, we expect little impact to our $124 fair value estimate. Shares look slightly cheap at current market prices. 

Read Full Analysis

Yum Brands Inc's Company Profile

Business Description

Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (26,930 global units), Pizza Hut (18,380 units), Taco Bell (7,790 units), and The Habit Burger (310 units) at year-end 2021. With $58 billion in 2021 systemwide sales, the firm is the second-largest restaurant company in the world, behind McDonald’s ($112 billion) but ahead of Restaurant Brands International ($35 billion) and Starbucks ($25 billion). Yum is 98% franchised, with the largest franchisee, Yum China, created via a 2016 spinoff transaction (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon Brands, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.

1441 Gardiner Lane
Louisville, KY, 40213
T +1 502 874-8300
Sector Consumer Cyclical
Industry Restaurants
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Cyclical
Employees 36,000

Yum Brands Inc's Related Articles & News