Yum! Brands (YUM)
NYSEConsumer DiscretionaryRestaurantsSnapshot 2026-09-04
$150.71-1.20%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryRestaurantsSnapshot 2026-09-04
QuarterlyIQ Insights · YUM
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks YUM against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue expanding restaurant unit count by approximately 5% annually across global brands.
Stated as a priority in 8 of last 8 quarters. Unit count grew approximately 5% year-over-year, with 1,053 gross new units added in 2026-Q2 and 1,030 in 2026-Q1. This consistent unit growth aligns with management's stated target and shows delivering progress.
“The Company targets 5% Unit Growth as a long-term financial performance metric.”
“We target 5% Unit Growth as a long-term financial performance metric.”
“The Company targets 5% Unit Growth as a long-term financial performance metric.”
“The Company targets 5% Unit Growth as a long-term financial performance metric.”
“The Company targets 5% Unit Growth as a long-term financial performance metric.”
“The Company targets 5% Unit Growth as a long-term financial performance metric.”
“The Company targets 5% Unit Growth as a long-term financial performance metric.”
Sustain system sales growth at approximately 7% annually, excluding foreign currency translation effects.
Stated as a priority in 8 of last 8 quarters. System sales growth excluding foreign currency translation was 5% in 2026-Q2 and 6% in 2026-Q1, slightly below the 7% target but showing steady progress. The trajectory is delivering but slightly below the stated goal.
Drive core operating profit growth at a minimum rate of 8% annually, excluding foreign currency and special items.
Stated as a priority in 8 of last 8 quarters. Core Operating Profit growth was 5% in 2026-Q2 and 6% in 2026-Q1, below the 8% target. Management has consistently reiterated this goal, but recent results show limited progress toward the stated growth rate.
Grow adoption and capabilities of Byte by Yum!, the proprietary AI-driven digital platform for restaurant operations and consumer engagement.
Stated as a priority in 3 of last 8 quarters. Management emphasizes expanding Byte by Yum! digital platform to more restaurants. While digital system sales have grown to approximately $11 billion with digital mix exceeding 60%, specific adoption metrics for Byte by Yum! are not disclosed, indicating persistent focus with limited detailed delivery data.
“Our priorities are to bring the benefits of Byte by Yum! to more of our system.”
Over the trailing year it converted 1.12x of net income into operating cash flow. Historically, Consumer Discretionary names rated neutral grew net income 49% of the time over the next year (vs 49% for the rest of the cohort, n=4864).
Not enough signal yet.
Not enough signal to read sensitivity to the US dollar, the broad stock market, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
20 material management or governance events in the past 24 months, led by executive changes. Historically, Consumer Discretionary names rated volatile grew net income 59% of the time over the next year (vs 48% for the rest of the cohort, n=1937).
Not investment advice. As of 2026-09-04.
“The Company targets 5% Unit Growth as a long-term financial performance metric.”
“The Company targets 7% System Sales Growth, excluding F/X.”
“We target 7% System Sales Growth, excluding F/X.”
“The Company targets 7% System Sales Growth, excluding F/X.”
“The Company targets 7% System Sales Growth, excluding F/X.”
“The Company targets 7% System Sales Growth, excluding F/X.”
“The Company targets 7% System Sales Growth, excluding F/X.”
“The Company targets 7% System Sales Growth, excluding F/X.”
“The Company targets 7% System Sales Growth, excluding F/X.”
“The Company targets at least 8% Core Operating Profit Growth.”
“We target at least 8% Core Operating Profit Growth.”
“The Company targets at least 8% Core Operating Profit Growth.”
“The Company targets at least 8% Core Operating Profit Growth.”
“The Company targets at least 8% Core Operating Profit Growth.”
“The Company targets at least 8% Core Operating Profit Growth.”
“The Company targets at least 8% Core Operating Profit Growth.”
“The Company targets at least 8% Core Operating Profit Growth.”
“Expanding Byte by Yum! digital platform is a key priority.”
“Expanding Byte across more restaurants worldwide is a priority.”