Stock fact sheet · data as of
Yum! Brands, Inc. (YUM): fair value, margin of safety and Wheel Score
Consumer Cyclical · Restaurants · United States · Defensive
Is YUM undervalued?
YUM closed at 146.69 on 16 Oct 2026 against a GLS average fair value of 140.99 - 4.0% above fair value, which our screens read as "fairly priced". 4 of 8 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between DDM (43.55) and Graham Growth (271.07). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files YUM under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for YUM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 212.52 | +45% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 271.07 | +85% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 104.60 | -29% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 91.02 | -38% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 167.94 | +14% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 148.28 | +1% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 43.55 | -70% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 88.93 | -39% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -49.40 | -134% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 170.44 | +16% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Yum! Brands, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability YUM scores 5.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 34.0%, ROE -21.3%, ROA 19.0% - with debt at -1.63 times equity and a free-cash-flow yield of 4.2%.
The dividend yield is 2.02% at a payout ratio of 36%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from KFC Global Division 43%, Taco Bell Global Division 39%, Pizza Hut Global Division 12% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 4/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 34.0% |
|---|---|---|---|
| GLS Moat | 5.1 / 10 | ROE | -21.3% |
| Debt / equity | -1.63 | ROA | 19.0% |
| Free-cash-flow yield | 4.2% | Payout ratio | 36% |
| Institutions | 10 / 10 | Insiders · Congress | 4 · 1 / 10 |
Wheel Score 70: Good
With a Wheel Score of 70 - the Good band - Yum! Brands, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 11/25, Health 13/20, Moat 8/15, Premium 19/20, Stability 20/20; Value (11/25) scores lowest.
Implied volatility is 34% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (19 of 20 points). Chain open interest is 26,140 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.7M shares a day on a market cap of $40.0B, with a beta of 0.55 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 11 / 25 | -4% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 8 / 15 | moat 5.1/10 | |
| Premium | 19 / 20 | implied volatility 34% | |
| Stability | 20 / 20 | 2.7M shares/day, $40.0B cap, beta 0.55 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (before the open), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Restaurants
The 12 companies below are the closest to Yum! Brands, Inc. by market cap within the Restaurants industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CMG Chipotle Mexican Grill, Inc. | 30.56 | 26.14 | -17% | 71Good | $38.7B |
| QSR Restaurant Brands International Inc. | 72.41 | 69.84 | -4% | 70Good | $25.3B |
| DRI Darden Restaurants, Inc. | 214.31 | 160.14 | -34% | 62Fair | $24.2B |
| SBUX Starbucks Corporation | 93.25 | 44.22 | -111% | 62Fair | $106.3B |
| YUMC Yum China Holdings, Inc. | 43.20 | 69.88 | +38% | 91Prime | $14.8B |
| TXRH Texas Roadhouse, Inc. | 166.64 | 124.53 | -34% | 64Fair | $10.9B |
| DPZ Domino's Pizza, Inc. | 303.09 | 307.19 | +1% | 77Good | $10.0B |
| MCD McDonald's Corporation | 242.50 | 213.16 | -14% | 64Fair | $171.6B |
| EAT Brinker International, Inc. | 204.91 | 291.64 | +30% | 90Prime | $8.6B |
| BROS Dutch Bros Inc. | 41.10 | 24.65 | -67% | 54Fair | $7.7B |
| CAVA CAVA Group, Inc. | 55.40 | 13.31 | -316% | 56Fair | $6.5B |
| CAKE The Cheesecake Factory Incorporated | 116.59 | 93.42 | -25% | 57Fair | $5.8B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about YUM
Is YUM undervalued right now?
Not meaningfully: at 146.69 the stock trades within a few percent of the GLS average fair value of 140.99 (4.0% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of YUM and what does it mean?
YUM scores 70 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for YUM?
140.99 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Yum! Brands, Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (before the open), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does YUM have listed options, and how liquid are they?
Yes. The nightly snapshot found 488 listed contracts with 26,140 open interest across all expiries and implied volatility of 34% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.