Now trading at a price of $122.08, Yum! Brands has moved -1.6% so far today.
Yum! Brands returned gains of 14.0% last year, with its stock price reaching a high of $143.25 and a low of $103.97. Over the same period, the stock underperformed the S&P 500 index by -2.0%. As of April 2023, the company's 50-day average price was $131.28. Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. Based in Louisville, KY, the large-cap Consumer Discretionary company has 36,000 full time employees. Yum! Brands has offered a 0.9% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2018-02-22 | 2019-02-21 | 2020-02-20 | 2021-02-22 | 2022-02-23 | 2023-02-27 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $5,878 | $5,688 | $5,597 | $5,652 | $6,584 | $6,842 |
| Gross Margins | 50.0% | 71.0% | 78.0% | 73.0% | 74.0% | 74.0% |
| Operating Margins | 28% | 31% | 34% | 28% | 32% | 32% |
| Net Margins | 23.0% | 27.0% | 23.0% | 16.0% | 24.0% | 19.0% |
| Net Income (MM) | $1,340 | $1,542 | $1,294 | $904 | $1,575 | $1,325 |
| Net Interest Expense (MM) | -$445 | -$452 | -$486 | -$543 | -$544 | -$527 |
| Depreciation & Amort. (MM) | -$253 | -$137 | -$112 | -$146 | -$164 | -$146 |
| Earnings Per Share | $3.77 | $4.69 | $4.13 | $2.94 | $5.29 | $4.57 |
| EPS Growth | n/a | 24.4% | -11.94% | -28.81% | 79.93% | -13.61% |
| Diluted Shares (MM) | 355 | 329 | 313 | 307 | 298 | 290 |
| Free Cash Flow (MM) | -$743 | $351 | $1,205 | $1,286 | $1,621 | $1,354 |
| Capital Expenditures (MM) | $1,773 | $825 | $110 | $19 | $85 | $73 |
| Net Current Assets (MM) | -$9,138 | -$10,849 | -$11,720 | -$12,054 | -$12,807 | -$13,113 |
| Long Term Debt (MM) | $9,429 | $9,751 | $10,131 | $10,272 | $11,178 | $11,453 |
| Net Debt / EBITDA | 4.27 | 5.15 | 4.96 | 5.65 | 4.74 | 4.96 |
Yum! Brands's Valuation Is in Line With Its Sector Averages:
Yum! Brands has a trailing twelve month P/E ratio of 26.5, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $5.92, the company has a forward P/E ratio of 22.2. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 4.6%. On this basis, the company's PEG ratio is 5.71, which suggests that it is overpriced.
Yum! Brands Has an Average Rating of Buy:
The 19 analysts following Yum! Brands have set target prices ranging from $132.0 to $173.0 per share, for an average of $149.47 with a buy rating. As of April 2023, the company is trading -12.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Yum! Brands has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 80.6% of the company's shares, and the insider ownership rate stands at 0.1%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 9% stake in the company is worth $3,014,581,886.
