Is Yum! Brands Stock Underperforming the S&P 500?

Company Overview - Yum! Brands, Inc. (YUM) has a market capitalization of $40.5 billion and operates globally through its well-known brands: KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, with a presence in over 150 countries and territories primarily through franchise and license agreements [1][2] Stock Performance - Yum! Brands' shares have decreased by 10.6% from their 52-week high of $163.30, while the stock has risen 1.5% over the past three months, underperforming the S&P 500 Index, which gained 8.2% in the same period [3] - Year-to-date, YUM stock is up 8.8%, lagging behind the S&P 500's 11.1% increase, and has increased by 9.9% over the past 52 weeks compared to the S&P 500's 18.9% return [4] Financial Performance - In Q2 2025, Yum! Brands reported an adjusted EPS of $1.44, which missed analyst estimates, leading to a 5.1% drop in shares on August 5. Rising ingredient costs, increased advertising spending, and a 13% rise in total expenses pressured margins, while worldwide same-store sales grew only 2%, below the forecast of 2.37% [5] - Taco Bell, which accounts for 38% of revenue, experienced a slowdown in U.S. same-store sales growth to 4% [5] Analyst Sentiment - Despite underperforming relative to the S&P 500, analysts maintain a moderately optimistic outlook on Yum! Brands, with a consensus rating of "Moderate Buy" from 28 analysts and a mean price target of $159.78, indicating a potential upside of 9.4% from current levels [6]