
YUM! Brands (YUM) Stock Forecast & Price Target
YUM! Brands (YUM) Analyst Ratings
Bulls say
Yum Brands concluded 2024 with over $65 billion in systemwide sales from more than 61,000 restaurants, positioning it as the second-largest restaurant firm globally by dollar sales, with 70% of its locations in international markets. The company's business model is primarily based on franchising, which accounts for 66% of revenue, providing a stable stream of recurring franchise royalties alongside revenue from company-owned locations. With forecasts indicating a rebound to 5% net restaurant growth by 2026, driven by enhanced same-store sales at KFC and strategic expansions in key international markets, Yum Brands is anticipated to achieve core EBIT growth exceeding 9%, reinforcing its strong growth trajectory and operational resilience.
Bears say
Yum Brands generated over $65 billion in systemwide sales through a diversified portfolio of prominent brands, with 98% of its locations being franchised, thereby relying heavily on recurring franchise royalties for revenue. The company faces significant challenges, notably from slower unit development in KFC International and difficult market conditions affecting Taco Bell, contributing to a negative growth outlook. Additionally, rising inflation pressures, particularly related to beef, have negatively impacted profit margins while increasing competition in the quick-service restaurant (QSR) sector further threatens profitability and pricing power.
This aggregate rating is based on analysts' research of YUM! Brands and is not a guaranteed prediction by Public.com or investment advice.
YUM! Brands (YUM) Analyst Forecast & Price Prediction
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