
YUM! Brands (YUM) Stock Forecast & Price Target
YUM! Brands (YUM) Analyst Ratings
Bulls say
Yum Brands is the world's second-largest restaurant firm by dollar sales, and with a portfolio of successful brands such as KFC, Pizza Hut, Taco Bell, and Habit Burger, the company has a strong foothold in the global quick-service restaurant market. With 97% of its locations being franchised, Yum's business model is geared towards recurring revenue from franchise royalties and marketing contributions. The recent sale of Pizza Hut at an 8.4x 2026E EBITDA multiple, ahead of market expectations and the company's 7.5x estimate, reflects the strength of its brands and management's efforts to optimize its portfolio. Despite facing risks such as deteriorating unit development and competition in the market, Yum's strong execution of its twin growth engines of Taco Bell and KFC international make it a favorable investment with a potential upside scenario of $225 based on its digital sales contribution to AUVs.
Bears say
Yum Brands is facing risks and uncertainties associated with the global economic environment and consumer spending, as well as general competition in the restaurant industry. In addition, fluctuations in commodity prices and labor costs may affect the company's financial performance. While there is potential for growth, especially in the company's Taco Bell and KFC brands, there are concerns about the international expansion of these brands and the potential for a slowdown in growth. Our updated $140 downside scenario value reflects these concerns and supports our negative outlook on the stock.
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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