Yum! Brands Stock Fair Value Calculation – YUM! Brands Serves Up Deliciousness Around the World
August 16, 2023
☀️Earnings Overview
YUM! BRANDS ($NYSE:YUM) announced its earnings results for the second quarter of FY2023, which ended on June 30 2023, on August 2 2023. Total revenue of USD 1687.0 million for the quarter was 3.1% higher than in the same period of the previous year, and reported net income rose by an impressive 86.6% year over year to USD 418.0 million.
Stock Price
YUM! On Wednesday, the company’s stock opened at $133.9 and closed at $135.0, down by 1.0% from its previous closing price of 136.4. This marks a slight decrease for the company, which has seen its stock rise steadily in the past few months. The company offers quick and convenient food options to consumers worldwide with their portfolio of brands, including KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. BRANDS is sure to satisfy even the pickiest of palates. The company is dedicated to providing quality and innovative products to all its customers. Through its commitment to culinary excellence, environmental stewardship, and social responsibility, YUM!
BRANDS is committed to making a positive impact on the world around us. YUM! BRANDS serves up deliciousness around the world, and the company continues to be a leader in the food industry. With its vast portfolio of brands, commitment to quality and innovation, and dedication to making a positive impact in the world, it is no wonder that YUM! BRANDS continues to be a major player in the food industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Yum! Brands. More…
| Total Revenues | Net Income | Net Margin |
| 6.99k | 1.42k | 19.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Yum! Brands. More…
| Operations | Investing | Financing |
| 1.58k | -107 | -1.44k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Yum! Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.85k | 14.28k | -30.12 |
Key Ratios Snapshot
Some of the financial key ratios for Yum! Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.4% | 9.8% | 32.0% |
| FCF Margin | ROE | ROA |
| 18.2% | -16.3% | 23.9% |
Analysis – Yum! Brands Stock Fair Value Calculation
At GoodWhale, we recently conducted an analysis of YUM! BRANDS‘ wellbeing. After careful consideration of the company’s financial information, we concluded that the intrinsic value of YUM! BRANDS share is around $133.3, calculated by our proprietary Valuation Line. This means that, currently, YUM! BRANDS stock is traded at $135.0, a fair price that is slightly overvalued by 1.3%. More…
Peers
In the fast food industry, Yum Brands Inc. has to contend with Jiumaojiu International Holdings Ltd, Yum China Holdings Inc, and Restaurant Brands International Inc. All of these companies are fighting for market share in the quick service restaurant industry. This industry is worth billions of dollars, and each company is trying to get a larger slice of the pie. Yum Brands Inc. is the largest player in the industry, but its competitors are not far behind. Jiumaojiu International Holdings Ltd is the second largest player, followed by Yum China Holdings Inc. All three of these companies are engaged in a fierce battle for market share.
– Jiumaojiu International Holdings Ltd ($SEHK:09922)
Jiumaojiu International Holdings Ltd is a leading international wine producer and retailer. The company has a market cap of 19.98B as of 2022 and a Return on Equity of 8.23%. Jiumaojiu International Holdings Ltd produces and sells premium wines under its own brands, which are sold in over 70 countries around the world. The company has a strong focus on quality, innovation and customer service, and is committed to delivering the highest levels of satisfaction to its customers.
– Yum China Holdings Inc ($NYSE:YUMC)
Yum China Holdings Inc is a leading restaurant company in China. It operates a variety of restaurant brands, including KFC, Pizza Hut, East Dawning and Little Sheep. As of December 31, 2020, Yum China had over 8,600 restaurants in more than 1,400 cities across China.
The company’s market cap is 19.64B as of 2022. Yum China’s ROE is 4.27%. The company has a strong presence in China and is well-positioned to continue growing in the country.
– Restaurant Brands International Inc ($TSX:QSR)
Restaurant Brands International Inc is a holding company that operates and franchises quick service restaurants. As of 2022, the company had a market capitalization of 23.36 billion and a return on equity of 52.84%. The company operates through three segments: Burger King, Tim Hortons, and Popeyes. Burger King is the company’s largest segment, accounting for about 60% of total revenue. Tim Hortons is the company’s second-largest segment, accounting for about 30% of total revenue. Popeyes is the company’s smallest segment, accounting for about 10% of total revenue.
Summary
YUM! Brands has seen an impressive 86.6% increase in net income year-over-year for the second quarter of FY2023. Total revenue was up 3.1% from the same period last year to USD 1687.0 million. These positive results are a great sign for investors, and suggest that the company is in a healthy state with strong prospects for continued growth.
YUM! Brands is a great stock option for investors looking for stability, upside potential, and robust long-term returns.
