Stock Price & Analysis

Based on the analysis of YUM stock, it is recommended to buy as the stock shows bullish technical indicators and strong fundamental growth.

YUM stock is predicted to reach $163 by year-end 2025, driven by strong beverage innovation and international expansion. The stock shows bullish momentum with Fibonacci resistance levels at 160.91 and 163.22, supported by positive news around Taco Bell's Live Mas Café concept. Current price trends and technical indicators suggest continued growth.

The S1 support level for YUM Stock is $154.55 ,The R1 resistant level for YUM Stock is $158.7.

As of the end of day on 2025-04-01, the price of YUM Stock was $158.92.

The target price for YUM Stock according to analyst rating is 157.40, with the highest price target at 185.00 and the lowest at 135.00. Analysts have a Hold rating on YUM Stock overall.

The market cap of YUM is $44.4B.

Analysis and Insights

YUM! Brands (YUM) appears to be slightly overvalued based on current valuation metrics and market expectations. Here's the analysis:

1. Valuation Metrics:

   • PE Ratio: YUM's price-to-earnings (P/E) ratio ranges between 24.5 and 26.02, which is higher than the industry average of 20-22 for restaurant stocks.
   • EV/EBITDA: The enterprise value-to-EBITDA ratio is between 17.5 and 19.31, slightly above the industry average of 15-18, indicating moderate overvaluation.
   • PS Ratio: The price-to-sales (P/S) ratio of 5.07 to 5.62 is elevated compared to historical averages, suggesting the market is pricing in strong future growth.
   • PB Ratio: The price-to-book (P/B) ratio of 1.47 to 1.93 is above 1, indicating the market value exceeds the book value.

2. Financial Performance:

   • YUM reported strong Q4 2024 results, with net income growing 27.8% year-over-year and solid same-store sales growth at Taco Bell. However, Pizza Hut's sales slightly declined, and international operations face macroeconomic headwinds.

3. Analyst Sentiment:

   • Analysts have mixed views, with a consensus rating of "Hold" and a mean price target of $154.12, slightly below the current price of $156.79. Some firms, like Baird, are bullish due to Taco Bell's growth, while others, like Morgan Stanley, remain cautious due to international risks.

4. Market Trends:

   • YUM has outperformed the broader Consumer Discretionary sector in 2025, with a 15.1% year-to-date gain compared to the sector's 12% decline. However, this outperformance may not sustain if macroeconomic conditions worsen.

5. Conclusion:
   While YUM's strong brand portfolio and digital initiatives are positives, its current valuation metrics suggest caution. The stock may be slightly overvalued given its high P/E and P/S ratios, but it is not significantly overpriced. Investors should monitor macroeconomic trends and international performance closely.

YUM! Brands, Inc. and its subsidiaries franchise or operate a system of approximately 58,000 restaurants in 155 countries and territories under the concepts of KFC, Taco Bell, Pizza Hut and The Habit Burger Grill. It consists of four operating segments: The KFC Division, which includes its worldwide operations of the KFC concept; The Taco Bell Division, which includes its worldwide operations of the Taco Bell concept; The Pizza Hut Division, which includes its worldwide operations of the Pizza Hut concept and The Habit Burger Grill Division, which includes its worldwide operations of the Habit Burger Grill concept. It develops, operates or franchises a system of both traditional and non-traditional restaurants. KFC restaurants offers fried and non-fried chicken products. Taco Bell specializes in Mexican-style food products. Pizza Hut specializes in the sale of ready-to-eat pizza products. The Habit Burger Grill offers chargrilled burgers and sandwiches made-to-order over an open flame.

Price Prediction for YUM Stock by 2030

Based on current trends and strategic initiatives, YUM stock is projected to reach $200-$220 by 2030, driven by its beverage innovation and digital transformation.

YUM has a total of 25000 employees.