YUM (YUM) Stock Analysis
Verdict: HOLD
Taco Bell foot-traffic drag pushes YUM to 52-week lows, creating a valuation floor backed by $1.64B FCF despite $11.9B debt burden.
Investment score: 48/100
The model sees YUM as a high-margin franchising cash cow currently weighed down by temporary Taco Bell foot-traffic slumps and industry macro headwinds. While $1.64B in annual FCF and a discounted 17.11x P/E offer a solid long-term floor, a high net leverage of 4.02x and severe negative momentum near 52-week lows ($136.91) justify a HOLD recommendation.
Peers
| Peer | P/E | P/B | P/S | EV/EBITDA | ROIC % | Net margin % |
|---|---|---|---|---|---|---|
| MCD | 20.18 | -173.00 | 6.39 | 15.35 | — | 0.32 |
| SBUX | 55.63 | -14.43 | 2.88 | 22.03 | — | 0.05 |
| DASH | 100.81 | 8.56 | 5.36 | 45.00 | — | 0.05 |
| CMG | 31.02 | 19.79 | 3.49 | 21.35 | — | 0.11 |
| QSR | 18.08 | 6.70 | 2.65 | 14.40 | — | 0.13 |