YUM! Brands (YUM) Stock Forecast & Price Target

Yum Brands is projected to achieve normalized net restaurant growth of 5% in 2026, driven by anticipated improvements in same-store sales across its KFC and Taco Bell brands, supported by new partnerships in key international markets. The company's strategic focus, particularly with the potential sale of Pizza Hut, is expected to enhance its growth trajectory and develop a more streamlined operational profile, particularly for Taco Bell. Additionally, Yum Brands is forecasted to deliver core EBIT growth exceeding 9%, which exceeds current guidance, indicating robust financial health and positive operational performance.

Yum Brands demonstrates a modest growth outlook, primarily hampered by challenges faced by Pizza Hut and KFC International, with expectations of net restaurant growth falling below 5.0% by 2026. Significant downside risks include deteriorating unit development, difficult year-over-year comparisons for Taco Bell, and increased pressure on margins due to higher beef inflation and a crowded quick service restaurant (QSR) market. The company's reliance on franchise royalties and marketing contributions may not adequately offset these operational hurdles, particularly if the underperforming segments like Pizza Hut remain a persistent drag on overall portfolio growth.