Yum! Brands

YUM · NYSE · Consumer Discretionary · Financials, fiscal 2016 to 2025

YUM · Last close · October 26, 2026

$149.47

Yum! Brands' revenue rose 8.8% to $8.2 billion in fiscal 2025. Its operating margin was 31.3%, down from 31.8% a year earlier. Free cash flow was $1.6 billion, up 14.5%. It paid out $1.3 billion in dividends and buybacks, 82% of free cash flow. The diluted share count fell 1.4%.

YUM! BRANDS, INC. Latest fiscal year ended December 31, 2025 10-K filed February 20, 2026 · 0001041061-26-000084 Updated October 9, 2026

Revenue

$8.2B

8.8%

Operating margin

31.3%

0.5 pts

Net income

$1.6B

4.9%

Free cash flow

$1.6B

14.5%

Return on capital

54.8%

7.6 pts

Market cap

$41.4B

Oct 26 close

P/E

18.8x

On $7.95 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Yum! Brands does

Yum! Brands owns the KFC, Taco Bell, Pizza Hut and Habit Burger & Grill restaurant chains, with more than 63,000 restaurants in 155 countries and territories. KFC sells fried and other chicken, Taco Bell sells Mexican-style food such as tacos and burritos, Pizza Hut sells pizza for delivery, carryout and dine-in, and Habit sells grilled burgers and sandwiches.

Yum reports one segment for each of its four chains; KFC is the largest, with 33,897 restaurants. Nearly all the restaurants, 97% at the end of 2025, are run by independent franchisees, who pay for the buildings and equipment. Yum earns upfront fees and monthly fees based on a share of each franchised restaurant's sales, typically 4% to 6%, plus advertising contributions, and also earns sales from the restaurants it runs itself. Its largest master franchisee is Yum China, a former part of the company that runs its brands in mainland China and pays a fee of 3% of sales there. Yum says its chains compete with other restaurant chains, local restaurants, supermarkets, convenience stores and food delivery services.

Yum and its subsidiaries employed about 49,000 people at the end of 2025, about 28,000 of them in the United States; franchisees hire their own workers. In 2025 Yum began reviewing options for Pizza Hut and expected to finish that review in 2026.

Its biggest risks, as it describes them

Food safety scares or outbreaks of food-borne illness linked to its restaurants or the wider industry.
Its dependence on the success of its franchisees, including Yum China, and their ability to open and run restaurants profitably.
The review of options for Pizza Hut may not lead to a deal or bring the expected benefits.
Its growing reliance on online ordering and delivery apps, and on technology that may not work as planned.
Rising food and other costs, supply shortages, and weaker consumer spending in its markets.

From Yum! Brands's annual report on Form 10-K, filed February 20, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 3.4% a year and net income fell 0.6% a year, as buybacks cut the share count by 30%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Yum! Brands yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Yum! Brands' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Yum! Brands' cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.8 times depreciation, which holds its free cash flow down) of $1.8B, net cash of −$11.3B at December 31, 2025 and 281 million diluted shares, from its filings. The scenarios are fitted to Yum! Brands: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 6.3% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Restaurants); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Yum! Brands's own revenue growth, as above. Cautious: growth of 3% then 2.5% a year, 2% after year 10, a 10% discount rate. Base: growth of 6.5% then 4.5% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 9.5% then 6% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $149.47
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Yum! Brands' earnings per share of $7.95 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 18.7×, the middle of Yum! Brands' own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Restaurant Brands International, Texas Roadhouse, Brinker International, Yum China.

Earnings growth in the years ahead (% a year) Starts at Yum! Brands' revenue growth over the last 3 years, 6.3% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $149.47
Value at this multiple, against the last close: —
Yum! Brands' P/E at the last close: 18.8×

Company	Last close	Earnings per share	P/E today
Texas RoadhouseTXRH	$165.82	$6.25	26.5×
Restaurant Brands InternationalQSR	$74.48	$3.72	20.0×
Yum! BrandsYUM	$149.47	$7.95	18.8×
Brinker InternationalEAT	$187.98	$10.87	17.3×
Yum ChinaYUMC	$45.53	$2.73	16.7×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	486	367	512	707	709
Debt incl. finance leases	11,321	12,341	11,322	11,431	12,014
Net debt (negative means net cash)	10,835	11,974	10,810	10,724	11,305
Net debt to EBITDA	4.7x	5.1x	4.4x	4.2x	4.1x
Debt to equity	—	—	—	—	—
Interest coverage	3.9x	3.9x	3.9x	4.4x	4.7x
Current ratio	1.1x	1.0x	1.3x	1.5x	1.4x
Quick ratio	1.1x	1.0x	1.3x	1.5x	1.4x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Yum! Brands shares on the open market, and 7 insiders sold $13.2 million, $8.4 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 7, 2026	Christopher Lee TurnerChief Executive Officer, Director	Sold plan	285	$140.11	$39,931	Form 4
Oct 1, 2026	Scott MezvinskyKFC Division CEO	Sold plan	241	$136.89	$32,990	Form 4
Sep 1, 2026	Scott MezvinskyKFC Division CEO	Sold plan	268	$153.64	$41,176	Form 4
Sep 1, 2026	Christopher Lee TurnerChief Executive Officer, Director	Sold plan	261	$153.64	$40,100	Form 4
Aug 24, 2026	Tracy L SkeansCOO and CPO	Sold plan	3,494	$158.00	$552,052	Form 4
Aug 3, 2026	David Eric RussellSr. Vice President, Controller	Sold plan	7,961	$153.15	$1.2 million	Form 4
Aug 3, 2026	Scott MezvinskyKFC Division CEO	Sold plan	268	$153.15	$41,044	Form 4
Aug 3, 2026	Christopher Lee TurnerChief Executive Officer, Director	Sold plan	261	$153.15	$39,972	Form 4
Jul 1, 2026	Aaron PowellCEO - Pizza Hut	Sold plan	6,001	$160.42	$962,680	Form 4
Jul 1, 2026	Scott MezvinskyKFC Division CEO	Sold plan	277	$160.42	$44,436	Form 4
Jul 1, 2026	Christopher Lee TurnerChief Executive Officer, Director	Sold plan	250	$160.42	$40,105	Form 4
Jun 1, 2026	Christopher Lee TurnerChief Executive Officer, Director	Sold plan	270	$148.14	$39,998	Form 4

The latest 12 of 33 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Fail	Fail
Revenue rose relative to assets	Pass	Pass	Pass
F-score	9 of 9	7 of 9	6 of 9
Accruals ratio	−0.1%	−3.1%	−6.0%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Yum! Brands side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Yum! Brands	FY25	8.8%	31.3%	19.9%	54.8%	4.1x	6
Restaurant Brands International	FY25	12.2%	23.3%	15.4%	9.0%	5.0x	6	Compare
Texas Roadhouse	FY25	9.4%	8.1%	5.8%	33.0%	−0.2x	4	Compare
Brinker International	FY26	7.9%	10.7%	9.6%	66.0%	0.4x	8	Compare
Yum China	FY25	4.4%	10.9%	7.1%	—	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	6,356	5,878	5,688	5,597	5,652	6,584	6,842	7,076	7,549	8,214
Revenue growth	−51.5%	−7.5%	−3.2%	−1.6%	1.0%	16.5%	3.9%	3.4%	6.7%	8.8%
Gross profit	—	2,924	4,054	4,362	4,146	4,859	5,097	5,302	5,429	5,731
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	1,682	2,761	2,296	1,930	1,503	2,139	2,187	2,318	2,403	2,574
Net income	1,643	1,340	1,542	1,294	904	1,575	1,325	1,597	1,486	1,559
Diluted EPS (US$)	4.10	3.77	4.69	4.14	2.94	5.21	4.57	5.59	5.22	5.55
Diluted shares (millions)	400	355	329	313	307	302	290	285	285	281
Cash flow
Cash from operations	—	1,030	1,176	1,315	1,305	1,706	1,427	1,603	1,689	2,010
Capital expenditure	—	318	234	196	160	230	279	285	257	371
Free cash flow	—	712	942	1,119	1,145	1,476	1,148	1,318	1,432	1,639
Dividends paid	0	416	462	511	566	592	649	678	752	789
Share buybacks	0	1,960	2,390	815	239	1,591	1,200	50	441	552
Acquisitions	0	0	66	0	408	0	0	0	174	6
Stock-based compensation	—	65	50	59	97	75	84	95	69	70
Balance sheet at fiscal year end
Cash and short-term investments	831	1,522	292	605	730	486	367	512	707	709
Debt incl. finance leases	9,191	10,190	10,403	11,003	11,188	11,321	12,341	11,322	11,431	12,014
Total assets	5,453	5,311	4,130	5,231	5,852	5,966	5,846	6,231	6,727	8,197
Total liabilities	11,068	11,645	12,056	13,247	13,743	14,339	14,722	14,089	14,375	15,521
Shareholders' equity	−5,615	−6,334	−7,926	−8,016	−7,891	−8,373	−8,876	−7,858	−7,648	−7,325
Margins and ratios
Gross margin	—	49.7%	71.3%	77.9%	73.3%	73.8%	74.5%	74.9%	71.9%	69.8%
Operating margin	26.5%	47.0%	40.4%	34.5%	26.6%	32.5%	32.0%	32.8%	31.8%	31.3%
Net margin	25.9%	22.8%	27.1%	23.1%	16.0%	23.9%	19.4%	22.6%	19.7%	19.0%
Free cash flow margin	—	12.1%	16.6%	20.0%	20.3%	22.4%	16.8%	18.6%	19.0%	19.9%
Return on capital	34.5%	64.1%	85.2%	79.7%	53.8%	80.0%	62.7%	67.3%	62.4%	54.8%
Return on equity	—	—	—	—	—	—	—	—	—	—
Return on assets	24.3%	24.9%	32.7%	27.6%	16.3%	26.6%	22.4%	26.4%	22.9%	20.9%
Net debt to EBITDA	4.2x	2.9x	4.2x	5.1x	6.3x	4.7x	5.1x	4.4x	4.2x	4.1x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Yum! Brands' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Yum! Brands.