YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
Europe - FRA:TGR - US9884981013 - Common Stock
123.5 EUR
-2.9 (-2.29%)
We assign a fundamental rating of 5 out of 10 to TGR. TGR was compared to 53 industry peers in the Hotels, Restaurants & Leisure industry. TGR scores excellent on profitability, but there are some minor concerns on its financial health. TGR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TGR was profitable.
TGR had a positive operating cash flow in the past year.
Each year in the past 5 years TGR has been profitable.
In the past 5 years TGR always reported a positive cash flow from operatings.
1.2 Ratios
TGR has a better Return On Assets (20.70%) than 98.11% of its industry peers.
With an excellent Return On Invested Capital value of 44.91%, TGR belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TGR is significantly above the industry average of 10.61%.
The last Return On Invested Capital (44.91%) for TGR is above the 3 year average (40.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROIC | 44.91% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
1.3 Margins
With an excellent Profit Margin value of 18.11%, TGR belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
TGR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 32.07%, TGR belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
In the last couple of years the Operating Margin of TGR has remained more or less at the same level.
With a Gross Margin value of 46.48%, TGR perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
TGR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% |
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TGR is creating value.
Compared to 1 year ago, TGR has less shares outstanding
TGR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TGR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.46 indicates that TGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TGR has a better Altman-Z score (2.46) than 71.70% of its industry peers.
The Debt to FCF ratio of TGR is 7.42, which is on the high side as it means it would take TGR, 7.42 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.42, TGR perfoms like the industry average, outperforming 50.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 2.46 |
ROIC/WACC5.22
WACC8.6%
2.3 Liquidity
TGR has a Current Ratio of 0.82. This is a bad value and indicates that TGR is not financially healthy enough and could expect problems in meeting its short term obligations.
TGR's Current ratio of 0.82 is in line compared to the rest of the industry. TGR outperforms 45.28% of its industry peers.
A Quick Ratio of 0.82 indicates that TGR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, TGR is in line with its industry, outperforming 45.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% over the past year.
The Earnings Per Share has been growing by 9.07% on average over the past years. This is quite good.
The Revenue has grown by 11.30% in the past year. This is quite good.
Measured over the past years, TGR shows a small growth in Revenue. The Revenue has been growing by 6.17% on average per year.
EPS 1Y (TTM)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
3.2 Future
TGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.84% yearly.
The Revenue is expected to grow by 7.03% on average over the next years.
EPS Next Y10.48%
EPS Next 2Y10.5%
EPS Next 3Y11.01%
EPS Next 5Y11.84%
Revenue Next Year7.39%
Revenue Next 2Y6.9%
Revenue Next 3Y6.67%
Revenue Next 5Y7.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.52, the valuation of TGR can be described as expensive.
Based on the Price/Earnings ratio, TGR is valued a bit cheaper than the industry average as 64.15% of the companies are valued more expensively.
TGR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 21.81, which indicates a rather expensive current valuation of TGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TGR indicates a somewhat cheap valuation: TGR is cheaper than 60.38% of the companies listed in the same industry.
TGR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 21.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGR is valued a bit more expensive than the industry average as 60.38% of the companies are valued more cheaply.
TGR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.39 | ||
| EV/EBITDA | 18.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TGR does not grow enough to justify the current Price/Earnings ratio.
TGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)2.81
EPS Next 2Y10.5%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
TGR has a Yearly Dividend Yield of 1.96%.
TGR's Dividend Yield is a higher than the industry average which is at 3.03.
TGR's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of TGR grows each year by 9.75%, which is quite nice.
Dividend Growth(5Y)9.75%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
TGR pays out 53.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
TGR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.77%
EPS Next 2Y10.5%
EPS Next 3Y11.01%
FRA:TGR (9/18/2025, 7:00:00 PM)
123.5
-2.9 (-2.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.9%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap34.28B
Analysts70.86
Price Target137.78 (11.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend2.29
Dividend Growth(5Y)9.75%
DP53.77%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.22%
Min EPS beat(2)-2.34%
Max EPS beat(2)-0.09%
EPS beat(4)0
Avg EPS beat(4)-1.66%
Min EPS beat(4)-4.11%
Max EPS beat(4)-0.09%
EPS beat(8)2
Avg EPS beat(8)-1.33%
EPS beat(12)4
Avg EPS beat(12)-0.67%
EPS beat(16)5
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.8%
Revenue beat(12)2
Avg Revenue beat(12)-2.52%
Revenue beat(16)2
Avg Revenue beat(16)-2.25%
PT rev (1m)-2.06%
PT rev (3m)-3.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 21.81 | ||
| P/S | 5.12 | ||
| P/FCF | 26.39 | ||
| P/OCF | 22.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.8 |
EPS(TTM)4.84
EY3.92%
EPS(NY)5.66
Fwd EY4.58%
FCF(TTM)4.68
FCFY3.79%
OCF(TTM)5.59
OCFY4.53%
SpS24.11
BVpS-23.41
TBVpS-27.21
PEG (NY)2.44
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROCE | 54.1% | ||
| ROIC | 44.91% | ||
| ROICexc | 52.49% | ||
| ROICexgc | 76.15% | ||
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% | ||
| FCFM | 19.41% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
ROICexc(3y)45.11%
ROICexc(5y)43.66%
ROICexgc(3y)59.72%
ROICexgc(5y)58.3%
ROCE(3y)48.55%
ROCE(5y)46.33%
ROICexcg growth 3Y0.45%
ROICexcg growth 5Y-3.03%
ROICexc growth 3Y0.78%
ROICexc growth 5Y-2.83%
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 159.57% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 107.19% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.46 |
F-Score6
WACC8.6%
ROIC/WACC5.22
Cap/Depr(3y)174.74%
Cap/Depr(5y)154.81%
Cap/Sales(3y)3.84%
Cap/Sales(5y)3.57%
Profit Quality(3y)88.51%
Profit Quality(5y)97.18%
High Growth Momentum
Growth
EPS 1Y (TTM)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
EPS Next Y10.48%
EPS Next 2Y10.5%
EPS Next 3Y11.01%
EPS Next 5Y11.84%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
Revenue Next Year7.39%
Revenue Next 2Y6.9%
Revenue Next 3Y6.67%
Revenue Next 5Y7.03%
EBIT growth 1Y8.42%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.67%
EBIT Next 3Y9.92%
EBIT Next 5Y8.84%
FCF growth 1Y20.02%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y15.92%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%