Yum! Brands, Inc(NYSE:YUM) 
YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Pizza Hut Division, the Taco Bell Division, and the Habit Burger Grill Division. The company operates restaurants under ...
Website: http://www.yum.com
Founded: 1997
Full Time Employees: 34,000
Sector: Consumer Cyclical
Industry: Restaurants
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At a glance:
- Global Franchised Model Drives Margin and Cash Flow Profile: Yum! Brands’ asset-light, heavily franchised structure generally supports higher operating margins, recurring royalty streams, and strong free cash flow conversion versus company-owned restaurant models.
- KFC International Is a Key Growth Engine: KFC’s large international footprint and development pipeline are central to unit growth and system sales, making performance in major overseas markets an important driver of results.
- Digital, Delivery, and Loyalty Continue to Expand Mix: Ongoing investments in mobile ordering, loyalty programs, and delivery partnerships aim to increase frequency and ticket size, while improving customer data and marketing efficiency.
- Same-Store Sales Sensitive to Consumer and Value Dynamics: Comparable sales can be influenced by inflation, consumer trade-down behavior, promotional intensity, and competitive value offerings across quick-service peers.
- Restaurant Development and Franchisee Health Remain Watch Items: Net new unit growth depends on franchisee returns, labor and food cost pressures, and access to capital; changes in these factors can affect development pace and royalty growth.
Bull Thesis:
- Robust Global Franchise Model: Yum! Brands operates a highly profitable, asset-light franchise model, generating stable royalty revenues with minimal capital expenditure. This model allows for rapid global expansion and strong free cash flow generation, providing resilience against economic fluctuations and enabling efficient capital allocation.
- Accelerated Digital Transformation and Delivery Growth: Significant investments in digital ordering platforms, loyalty programs, and strategic partnerships with third-party delivery services are driving increased customer engagement and sales. This focus on convenience and accessibility is crucial for capturing market share and enhancing customer lifetime value in the evolving QSR landscape.
- Strong International Expansion Potential: With a substantial global footprint, particularly for KFC and Taco Bell, Yum! Brands has considerable runway for growth in emerging markets. These regions offer large, underserved populations and increasing disposable incomes, fueling new unit development and system sales growth for years to come.
- Diversified and Resilient Brand Portfolio: The portfolio of iconic brands (KFC, Pizza Hut, Taco Bell) provides diversification. While some brands may face challenges, the overall strength and global appeal of KFC and the consistent innovation at Taco Bell often offset weaker performance in other segments, ensuring overall portfolio resilience and stable revenue streams.
Bear Thesis:
- Intense Competition in the QSR Market: Yum! Brands operates in a highly competitive quick-service restaurant industry, facing pressure from established global players (e.g., McDonald's, Restaurant Brands International), regional chains, and emerging fast-casual concepts. This intense competition can limit pricing power, market share gains, and necessitate continuous marketing spend.
- Inflationary Pressures and Franchisee Margin Squeeze: Rising costs for food, labor, and energy can significantly impact franchisee profitability. While Yum! Brands is asset-light, a decline in franchisee health or profitability could slow new unit development, reduce royalty payments, and strain the overall system, potentially leading to slower growth or store closures.
- Underperformance and Stagnation of Certain Brands: While KFC and Taco Bell generally perform well, Pizza Hut has faced significant challenges and market share loss in key markets against competitors like Domino's and Papa John's. Continued underperformance in one of its core brands could drag down overall company growth and profitability, requiring substantial turnaround efforts.
- Shifting Consumer Preferences and Health Trends: There is a growing global trend towards healthier eating, plant-based options, and more sustainable food choices. Traditional fast-food offerings may face long-term headwinds if Yum! Brands struggles to adapt its menu and brand image to these evolving consumer demands effectively, potentially alienating a segment of its customer base.
Main Competitors:
- McDonald's Corporation ($MCD) (McDonald's restaurants), Competes directly across multiple QSR categories, particularly in burgers (with The Habit Burger Grill) and chicken (with KFC's chicken sandwiches), as well as general quick-service meals globally. They vie for similar customer demographics, prime real estate, and market share in the fast-food industry.
- Restaurant Brands International Inc. ($RBI) (Burger King, Popeyes Louisiana Kitchen, Tim Hortons, Firehouse Subs), A major QSR conglomerate that directly competes with Yum! Brands through its various chains. Burger King competes with The Habit Burger Grill, while Popeyes Louisiana Kitchen is a direct and significant competitor to KFC in the fried chicken segment. They also compete for franchise partners and global expansion opportunities.
- Domino's Pizza, Inc. ($DPZ) (Domino's Pizza), The primary direct competitor to Pizza Hut in the global pizza delivery and carryout market. They compete on price, speed of service, menu innovation, digital ordering technology, and customer loyalty within the highly competitive pizza segment.
- Chipotle Mexican Grill, Inc. ($CMG) (Chipotle Mexican Grill restaurants), Competes with Yum! Brands in the fast-casual and QSR segments, particularly with Taco Bell for Mexican-inspired food and with The Habit Burger Grill for customers seeking fresh, customizable meal options. Chipotle's focus on fresh ingredients and customizable orders appeals to a similar, often health-conscious, demographic.
Moat:
Yum! Brands' primary moat lies in its portfolio of globally recognized, iconic brands (KFC, Pizza Hut, Taco Bell) and its highly effective, asset-light franchise model. This model allows for rapid global expansion with lower capital expenditure, leveraging local entrepreneurial drive. The strong brand equity fosters customer loyalty and provides pricing power. Its scale offers advantages in supply chain, marketing, and technology investments.
Competition is intense and multi-faceted, coming from direct QSR rivals like McDonald's and RBI across various categories, segment-specific competitors such as Domino's challenging Pizza Hut, and fast-casual players like Chipotle vying for evolving consumer preferences. Yum! Brands mitigates these pressures through continuous brand revitalization, digital transformation, menu innovation (e.g., plant-based options), and aggressive international expansion, particularly in emerging markets where QSR penetration is still growing. The strength of its individual brands and the operational efficiency of its franchise system are key to maintaining its competitive edge.
Income Statements:
Quarterly
Annual
| Unit: USD | 2025-12-31 | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2022-12-31 | 2022-09-30 | 2022-06-30 | 2022-03-31 | 2021-12-31 | 2021-09-30 | 2021-06-30 | 2021-03-31 | 2020-12-31 | 2020-09-30 | 2020-06-30 | 2020-03-31 | 2019-12-31 | 2019-09-30 | 2019-06-30 | 2019-03-31 | 2018-12-31 | 2018-09-30 | 2018-06-30 | 2018-03-31 | 2017-12-31 | 2017-09-30 | 2017-06-30 | 2017-03-31 | 2016-12-31 | 2015-12-26 | 2015-06-13 | 2014-12-27 | 2013-12-28 | 2013-09-07 | 2013-06-15 | 2013-03-23 | 2012-12-29 | 2012-09-08 | 2012-06-16 | 2012-03-24 | 2011-12-31 | 2011-09-03 | 2011-06-11 | 2011-03-19 | 2010-12-25 | 2010-06-12 | 2010-03-20 | 2009-12-26 | 2009-09-05 | 2009-07-21 | 2009-03-21 | 2008-12-27 | 2008-09-06 | 2008-07-21 | 2008-03-22 | 2008-01-28 | 2007-10-15 | 2007-06-16 | 2007-05-03 | 2006-12-31 | 2006-09-09 | 2006-07-24 | 2006-05-01 |
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Balance Sheets:
Quarterly
Annual
| Unit: USD | 2025-12-31 | 2024-12-31 | 2023-12-31 | 2022-12-31 | 2021-12-31 | 2020-12-31 | 2019-12-31 | 2018-12-31 | 2017-12-31 | 2016-12-31 | 2015-12-26 | 2014-12-27 | 2013-12-28 | 2012-12-29 | 2011-12-31 | 2010-12-25 | 2009-12-26 | 2008-12-27 | 2007-01-28 | 2006-12-31 |
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assets | ||||||||||||||||||||
current assets | ||||||||||||||||||||
cash and cash equivalents | 709,000,000 | 616,000,000 | 512,000,000 | 367,000,000 | 486,000,000 | 730,000,000 | 605,000,000 | 292,000,000 | 1,522,000,000 | 704,000,000 | 737,000,000 | 578,000,000 | 573,000,000 | 776,000,000 | 1,198,000,000 | 1,426,000,000 | 353,000,000 | 216,000,000 | 789,000,000 | 319,000,000 |
accounts and notes receivable | 841,000,000 | 775,000,000 | 737,000,000 | 648,000,000 | 596,000,000 | 534,000,000 | 584,000,000 | 561,000,000 | 400,000,000 | 370,000,000 | 377,000,000 | 325,000,000 | 319,000,000 | 301,000,000 | 286,000,000 | 256,000,000 | 239,000,000 | 229,000,000 | 225,000,000 | 220,000,000 |
prepaid expenses and other current assets | 490,000,000 | 480,000,000 | 360,000,000 | 594,000,000 | 450,000,000 | 425,000,000 | 338,000,000 | 354,000,000 | 371,000,000 | 238,000,000 | 242,000,000 | 254,000,000 | 286,000,000 | 272,000,000 | 338,000,000 | 269,000,000 | 314,000,000 | 172,000,000 | 142,000,000 | 132,000,000 |
total current assets | 2,040,000,000 | 1,871,000,000 | 1,609,000,000 | 1,609,000,000 | 1,532,000,000 | 1,689,000,000 | 1,527,000,000 | 1,207,000,000 | 2,507,000,000 | 1,482,000,000 | 1,688,000,000 | 1,646,000,000 | 1,691,000,000 | 1,909,000,000 | 2,321,000,000 | 2,313,000,000 | 1,208,000,000 | 951,000,000 | 1,481,000,000 | 901,000,000 |
property, plant and equipment | 1,605,000,000 | 1,304,000,000 | 1,197,000,000 | 1,171,000,000 | 1,207,000,000 | 1,235,000,000 | 1,170,000,000 | 1,237,000,000 | 1,697,000,000 | 2,160,000,000 | 4,189,000,000 | 4,498,000,000 | 4,459,000,000 | 4,250,000,000 | 4,042,000,000 | 3,830,000,000 | 3,899,000,000 | 3,710,000,000 | 3,849,000,000 | 3,631,000,000 |
goodwill | 969,000,000 | 736,000,000 | 642,000,000 | 638,000,000 | 657,000,000 | 597,000,000 | 530,000,000 | 525,000,000 | 512,000,000 | 541,000,000 | 656,000,000 | 700,000,000 | 889,000,000 | 1,034,000,000 | 681,000,000 | 659,000,000 | 640,000,000 | 605,000,000 | 672,000,000 | 662,000,000 |
intangible assets | 909,000,000 | 416,000,000 | 377,000,000 | 354,000,000 | 359,000,000 | 343,000,000 | 244,000,000 | 242,000,000 | 110,000,000 | 151,000,000 | 271,000,000 | 318,000,000 | 638,000,000 | 690,000,000 | 299,000,000 | 475,000,000 | 462,000,000 | 335,000,000 | 333,000,000 | 347,000,000 |
other assets | 1,708,000,000 | 1,329,000,000 | 1,361,000,000 | 1,324,000,000 | 1,487,000,000 | 1,435,000,000 | 1,313,000,000 | 724,000,000 | 346,000,000 | 370,000,000 | 534,000,000 | 560,000,000 | 566,000,000 | 575,000,000 | 475,000,000 | 519,000,000 | 544,000,000 | 561,000,000 | 464,000,000 | 369,000,000 |
deferred income taxes | 965,000,000 | 1,071,000,000 | 1,045,000,000 | 750,000,000 | 724,000,000 | 553,000,000 | 447,000,000 | 195,000,000 | 139,000,000 | 774,000,000 | 676,000,000 | 93,000,000 | 123,000,000 | 111,000,000 | 112,000,000 | 61,000,000 | 81,000,000 | 81,000,000 | 125,000,000 | 57,000,000 |
total assets | 8,197,000,000 | 6,727,000,000 | 6,231,000,000 | 5,846,000,000 | 5,966,000,000 | 5,852,000,000 | 5,231,000,000 | 4,130,000,000 | 5,311,000,000 | 5,478,000,000 | 8,075,000,000 | 8,345,000,000 | 8,695,000,000 | 9,011,000,000 | 8,834,000,000 | 8,316,000,000 | 7,148,000,000 | 6,527,000,000 | 7,242,000,000 | 6,353,000,000 |
liabilities and shareholders’ deficit | ||||||||||||||||||||
current liabilities | ||||||||||||||||||||
accounts payable and other current liabilities | 1,433,000,000 | 1,211,000,000 | 1,169,000,000 | 1,251,000,000 | 1,334,000,000 | 1,189,000,000 | 960,000,000 | 911,000,000 | 813,000,000 | 1,132,000,000 | 1,985,000,000 | 1,972,000,000 | 1,929,000,000 | 1,945,000,000 | 1,874,000,000 | 1,602,000,000 | 1,413,000,000 | 1,473,000,000 | 1,650,000,000 | 1,386,000,000 |
income taxes payable | 46,000,000 | 31,000,000 | 55,000,000 | 16,000,000 | 13,000,000 | 33,000,000 | 150,000,000 | 69,000,000 | 123,000,000 | 37,000,000 | 77,000,000 | 77,000,000 | 169,000,000 | 97,000,000 | 142,000,000 | 61,000,000 | 82,000,000 | 114,000,000 | 52,000,000 | 37,000,000 |
short-term borrowings | 38,000,000 | 27,000,000 | 53,000,000 | 398,000,000 | 68,000,000 | 453,000,000 | 431,000,000 | 321,000,000 | 375,000,000 | 66,000,000 | 923,000,000 | 267,000,000 | 71,000,000 | 10,000,000 | 320,000,000 | 673,000,000 | 59,000,000 | 25,000,000 | 288,000,000 | 227,000,000 |
total current liabilities | 1,516,000,000 | 1,269,000,000 | 1,277,000,000 | 1,665,000,000 | 1,415,000,000 | 1,675,000,000 | 1,541,000,000 | 1,301,000,000 | 1,512,000,000 | 1,369,000,000 | 3,088,000,000 | 2,411,000,000 | 2,265,000,000 | 2,188,000,000 | 2,450,000,000 | 2,448,000,000 | 1,653,000,000 | 1,722,000,000 | 2,062,000,000 | 1,724,000,000 |
long-term debt | 11,872,000,000 | 11,306,000,000 | 11,142,000,000 | 11,453,000,000 | 11,178,000,000 | 10,272,000,000 | 10,131,000,000 | 9,751,000,000 | 9,429,000,000 | 9,061,000,000 | 3,054,000,000 | 3,077,000,000 | 2,918,000,000 | 2,932,000,000 | 2,997,000,000 | 2,915,000,000 | 3,207,000,000 | 3,564,000,000 | 2,924,000,000 | 2,045,000,000 |
other liabilities and deferred credits | 2,133,000,000 | 1,800,000,000 | 1,670,000,000 | 1,604,000,000 | 1,746,000,000 | 1,796,000,000 | 1,575,000,000 | 1,004,000,000 | 704,000,000 | 704,000,000 | 958,000,000 | 1,244,000,000 | 1,244,000,000 | 1,579,000,000 | 1,471,000,000 | 1,284,000,000 | 1,174,000,000 | 1,349,000,000 | 1,117,000,000 | 1,147,000,000 |
total liabilities | 15,521,000,000 | 14,375,000,000 | 14,089,000,000 | 14,722,000,000 | 14,339,000,000 | 13,743,000,000 | 13,247,000,000 | 12,056,000,000 | 11,645,000,000 | 11,134,000,000 | 7,100,000,000 | 6,732,000,000 | 6,427,000,000 | 6,699,000,000 | 6,918,000,000 | 6,647,000,000 | 6,034,000,000 | 6,635,000,000 | 6,103,000,000 | 4,916,000,000 |
shareholders’ deficit | ||||||||||||||||||||
common stock | 60,000,000 | 18,000,000 | 86,000,000 | 253,000,000 | 7,000,000 | |||||||||||||||
accumulated deficit | -7,014,000,000 | -7,256,000,000 | -7,616,000,000 | -8,507,000,000 | -8,048,000,000 | -7,480,000,000 | -7,628,000,000 | -7,592,000,000 | -6,063,000,000 | |||||||||||
accumulated other comprehensive loss | -311,000,000 | -392,000,000 | -302,000,000 | -369,000,000 | -325,000,000 | -411,000,000 | -388,000,000 | -334,000,000 | -271,000,000 | -247,000,000 | -227,000,000 | -224,000,000 | -156,000,000 | |||||||
total shareholders’ deficit | -7,325,000,000 | -7,648,000,000 | -7,858,000,000 | -8,876,000,000 | -8,373,000,000 | -7,891,000,000 | -8,016,000,000 | -7,926,000,000 | -6,334,000,000 | |||||||||||
total liabilities and shareholders’ deficit | 8,197,000,000 | 6,727,000,000 | 6,231,000,000 | 5,846,000,000 | 5,966,000,000 | 5,852,000,000 | 5,231,000,000 | 4,130,000,000 | 5,311,000,000 | |||||||||||
see accompanying notes to consolidated financial statements. | ||||||||||||||||||||
advertising cooperative assets, restricted | 201,000,000 | 134,000,000 | 103,000,000 | 95,000,000 | 96,000,000 | 136,000,000 | 114,000,000 | 112,000,000 | 99,000,000 | 110,000,000 | 72,000,000 | 74,000,000 | ||||||||
advertising cooperative liabilities | 201,000,000 | 134,000,000 | 103,000,000 | 95,000,000 | 96,000,000 | 136,000,000 | 114,000,000 | 112,000,000 | 99,000,000 | 110,000,000 | 72,000,000 | 74,000,000 | ||||||||
inventories | 13,000,000 | 36,000,000 | 229,000,000 | 301,000,000 | 294,000,000 | 313,000,000 | 273,000,000 | 189,000,000 | 122,000,000 | 143,000,000 | 128,000,000 | 93,000,000 | ||||||||
current assets of discontinued operations | ||||||||||||||||||||
noncurrent assets of discontinued operations | ||||||||||||||||||||
liabilities and shareholders’ equity | ||||||||||||||||||||
current liabilities of discontinued operations | ||||||||||||||||||||
noncurrent liabilities of discontinued operations | ||||||||||||||||||||
redeemable noncontrolling interest - discontinued operations | ||||||||||||||||||||
shareholders’ equity | ||||||||||||||||||||
retained earnings | -5,223,000,000 | 1,150,000,000 | 1,737,000,000 | 2,102,000,000 | 2,286,000,000 | 2,052,000,000 | 1,717,000,000 | 996,000,000 | 303,000,000 | 1,119,000,000 | 1,593,000,000 | |||||||||
accumulated other comprehensive income | -433,000,000 | -239,000,000 | -190,000,000 | 64,000,000 | -132,000,000 | -418,000,000 | 20,000,000 | |||||||||||||
total shareholders’ equity (deficit) – yum! brands, inc. | -5,656,000,000 | 1,025,000,000 | ||||||||||||||||||
noncontrolling interests - discontinued operations | ||||||||||||||||||||
total shareholders’ equity | -5,656,000,000 | 969,000,000 | 1,604,000,000 | 2,229,000,000 | 2,253,000,000 | 1,916,000,000 | 1,669,000,000 | 1,114,000,000 | -108,000,000 | 1,139,000,000 | 1,437,000,000 | |||||||||
total liabilities, redeemable noncontrolling interest and shareholders’ equity | 5,478,000,000 | 8,075,000,000 | 8,345,000,000 | 8,695,000,000 | 9,011,000,000 | |||||||||||||||
investments in unconsolidated affiliates | 61,000,000 | 52,000,000 | 53,000,000 | 72,000,000 | 167,000,000 | 154,000,000 | 144,000,000 | 65,000,000 | 153,000,000 | 138,000,000 | ||||||||||
redeemable noncontrolling interest | 6,000,000 | 9,000,000 | 39,000,000 | 59,000,000 | ||||||||||||||||
total shareholders’ equity – yum! brands, inc. | 911,000,000 | 1,547,000,000 | 2,166,000,000 | 2,154,000,000 | 1,823,000,000 | 1,576,000,000 | ||||||||||||||
noncontrolling interests | 58,000,000 | 57,000,000 | 63,000,000 | 99,000,000 | 93,000,000 | |||||||||||||||
restricted cash | 300,000,000 | |||||||||||||||||||
total liabilities and shareholders’ equity | 8,834,000,000 | 8,316,000,000 | 7,148,000,000 | 6,527,000,000 | 7,242,000,000 | 6,353,000,000 | ||||||||||||||
noncontrolling interest | 93,000,000 | 89,000,000 | ||||||||||||||||||
preferred stock, no par value, zero shares and 250 shares authorized in 2007 and 2006, respectively; no shares issued | ||||||||||||||||||||
short-term investments | 6,000,000 | |||||||||||||||||||
preferred stock, no par value, 250 shares authorized; no shares issued |
Cashflow Statements:
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Annual
| Unit: USD |
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