Yum! Brands Intrinsic Value – Yum! Brands Stock Rises, Lags Behind Market Performance
November 18, 2023
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Yum! Brands ($NYSE:YUM) Inc., a leading global restaurant company, saw its stock rise on Friday, however, this increase still fell short of the overall market performance. Brands Inc. is the parent company of KFC, Taco Bell, Pizza Hut, and other restaurant chains. Brands Inc. rose marginally on Friday, yet it still failed to keep up with the broader market performance.
This is apparent in the stock’s price movements: in the last five trading days, Yum! Despite this lag behind the market, analysts are optimistic about the future of Yum! Brands Inc.’s stock and believe that it has potential for growth.
Price History
BRANDS Inc. experienced a slight dip in stock prices on Monday. The stock opened at $125.5 and closed at $125.3, which was 0.5% lower compared to the 126.0 closing price from the prior day. This stock performance lagged behind the overall market performance, which ended the day with a positive gain of 0.5%. BRANDS Inc. was unable to keep up with the rest of the market. 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 |
| 7.06k | 1.5k | 20.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Yum! Brands. More…
| Operations | Investing | Financing |
| 1.61k | -94 | -1.32k |
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 |
| 6.07k | 14.26k | -29.23 |
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 |
| 8.0% | 10.7% | 32.6% |
| FCF Margin | ROE | ROA |
| 18.5% | -17.3% | 23.7% |
Analysis – Yum! Brands Intrinsic Value
At GoodWhale, we have conducted an analysis of YUM! BRANDS‘ financials. Our proprietary Valuation Line has determined the fair value of YUM! BRANDS’ share to be around $132.9. However, the stock is currently trading at $125.3, which is a fair price that is undervalued by 5.7%. We believe this presents an opportunity for investors to take advantage of this favorable difference and acquire shares at a bargain price. More…
Peers
In the fast food industry, Yum Brands Inc. has to contend with Jiumaojiu International Holdings Ltd, Yum China Holdings Inc, and Restaurant Brands International Inc. All of these companies are fighting for market share in the quick service restaurant industry. This industry is worth billions of dollars, and each company is trying to get a larger slice of the pie. Yum Brands Inc. is the largest player in the industry, but its competitors are not far behind. Jiumaojiu International Holdings Ltd is the second largest player, followed by Yum China Holdings Inc. All three of these companies are engaged in a fierce battle for market share.
– Jiumaojiu International Holdings Ltd ($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 Inc. (YUM) saw its stock rise on Friday, but it still underperformed the market. Analysts suggest that investors may be cautious due to Yum’s lack of performance in recent months. Investors may also be concerned about Yum’s relatively low operating margins compared to its peers.
Despite these factors, Yum is still a major player in the quick-service restaurant business, and some analysts believe that its long-term prospects remain attractive. It is recommended that investors conduct additional research before investing in Yum, as the company’s future performance is uncertain.
