YUM! Brands (YUM) Stock Forecast & Price Target

Yum Brands, with a diversified portfolio generating over $65 billion in systemwide sales, is positioned as the second-largest restaurant company globally. The company is expected to achieve a return to 5% net restaurant growth by 2027, supported by strong performance in KFC same-store sales and significant international expansion efforts in key markets such as Brazil, Japan, and Korea. Additionally, the potential sale of Pizza Hut is anticipated to enhance Yum's growth trajectory, leading to improved development metrics and core EBIT growth exceeding current guidance levels.

Yum Brands faces significant challenges that contribute to a negative outlook on its stock, notably stemming from underperformance in key brands, particularly Pizza Hut, which is projected to drag down overall growth. The company contends with an expected modestly below 5.0% net restaurant growth in 2026, exacerbated by deteriorating unit development and increasing competition in the quick service restaurant (QSR) market that adversely affects margins and pricing power. Additionally, rising beef inflation impacting Taco Bell, alongside difficulties in Pizza Hut's U.S. operations, further undermines the investor narrative and overall portfolio performance.