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

PeerP/EP/BP/SEV/EBITDAROIC %Net margin %
MCD20.18-173.006.3915.350.32
SBUX55.63-14.432.8822.030.05
DASH100.818.565.3645.000.05
CMG31.0219.793.4921.350.11
QSR18.086.702.6514.400.13

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