
YUM! Brands (YUM) Stock Forecast & Price Target
YUM! Brands (YUM) Analyst Ratings
Bulls say
Yum Brands is positioned for positive growth with a robust systemwide sales forecast exceeding $65 billion in 2024 and a strong reliance on its franchised business model, which comprises 98% of its operations. The company's anticipated return to a normalized 5% net restaurant growth rate by 2026, bolstered by improvements in same-store sales at KFC and Taco Bell, indicates a promising trajectory for earnings before interest and taxes (EBIT) growth, projected to exceed 9%. Additionally, the strategic move to potentially divest Pizza Hut aligns with Yum's long-term leverage target, enhancing its focus on high-performing brands and amplifying its growth profile in the quick-service restaurant sector.
Bears say
Yum Brands is expected to experience modest net restaurant growth of below 5.0% in 2026, primarily driven by challenges faced by Pizza Hut, which may hinder overall portfolio growth. There are notable risks including declining unit development for key brands like KFC International and Taco Bell, as well as increased beef inflation impacting Taco Bell's profit margins, projected to be around 24% for 2025. Additionally, the rise in competition within the quick-service restaurant (QSR) market is anticipated to further pressure margins and diminish pricing power for Yum Brands.
This aggregate rating is based on analysts' research of YUM! Brands and is not a guaranteed prediction by Public.com or investment advice.
YUM! Brands (YUM) Analyst Forecast & Price Prediction
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