Core Insights - Yum! Brands, Inc. has a market capitalization of $44.6 billion and operates over 55,000 restaurants globally under brands like KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill [1] Financial Performance - In Q4 of fiscal 2025, Yum! reported a revenue increase of 6% year-over-year to $2.51 billion, with global same-store sales up 3% and system sales increasing by 5% [4] - Adjusted EPS for the quarter was $1.73, reflecting an 8% year-over-year growth, but slightly below analyst expectations [4] Stock Performance - Yum! shares have gained 8%, underperforming the S&P 500 Index, which has risen nearly 11.8% [2] - Year-to-date, Yum!'s stock rose 6.1%, contrasting with a slight decline in the S&P 500 [2] Analyst Ratings and Expectations - Analysts project Yum!'s EPS to grow by 9.4% to $6.07 for the fiscal year ending December 2026 [5] - The consensus rating among 28 analysts is a "Moderate Buy," with 11 "Strong Buy" ratings and 17 "Holds" [5] - Evercore ISI analyst raised the price target for Yum! to $190, indicating confidence in the stock's potential [7]

Financial Performance - Yum! Brands reported a 27% increase in fourth-quarter 2025 net income, rising to $535 million from $423 million a year earlier [1] - Revenue for Q4 2025 was $2.51 billion, up 6% from $2.36 billion in Q4 2024 [1] - Global system sales in the quarter rose 5%, with Taco Bell leading at 8% growth and KFC at 6% [1][3] Expansion and Growth - The company opened 1,814 gross units in the quarter, translating to 3% year-on-year unit growth [2] - KFC accounted for the majority of the expansion with 1,132 gross restaurant openings, while Taco Bell added 228 new outlets [2] - For the full fiscal year 2025, Yum! Brands opened 4,567 gross units [3] Digital Sales and Profitability - Digital system sales in Q4 exceeded $11 billion, with digital channels accounting for nearly 60% of system sales [2] - GAAP earnings per share (EPS) were $1.91 for the quarter, while EPS excluding special items was $1.73 [3] Strategic Focus and Future Plans - CEO Chris Turner highlighted strong fundamentals at KFC and Taco Bell, with a focus on accelerating long-term growth through the "Raise the Bar" priorities [4] - The board approved a dividend of $0.75 per share, marking a 6% increase [4] - A strategic review of the Pizza Hut brand is expected to be completed this year, which may involve shutting down 250 underperforming stores in the US in the first half of 2026 [4][5]

Company Overview - Yum! Brands, Inc. has a market cap of $43.6 billion and operates well-known quick-service brands such as KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, primarily through a franchise model in over 150 countries and territories [1] Earnings Forecast - Analysts predict Yum! Brands will report an adjusted EPS of $1.78 for Q4 2025, reflecting a 10.6% increase from $1.61 in the same quarter last year [2] - For fiscal 2025, the adjusted EPS is forecasted to be $6.10, an 11.3% rise from $5.48 in fiscal 2024, with an anticipated growth of 8% year over year to $6.59 in fiscal 2026 [3] Stock Performance - Yum! Brands shares have increased by 27.3% over the past 52 weeks, outperforming the S&P 500 Index's return of 19.7% and the Consumer Discretionary Select Sector SPDR Fund's increase of 12.8% during the same period [4] Dividend Declaration - On November 20, Yum! Brands declared a quarterly cash dividend of $0.71 per share, payable on December 12, 2025, to shareholders of record as of December 2, 2025, with shares rising 2.5% in the next trading session [5] Analyst Ratings - The consensus view on Yum! Brands stock is cautiously optimistic, with a "Moderate Buy" rating from 28 analysts, including 11 recommending "Strong Buy" and 17 indicating "Hold." The average price target is $164.58, suggesting a potential upside of 4.9% from current levels [6]

Core Viewpoint - Yum! Brands, Inc. (NYSE:YUM) is considered one of the best restaurant stocks to buy currently, with a cautiously optimistic analyst sentiment surrounding the stock amid leadership changes and strategic actions aimed at unlocking shareholder value [1][2]. Analyst Sentiment - As of January 6, 2026, approximately 41% of analysts hold a positive outlook on Yum! Brands, with a median price target of $164.00, indicating an upside potential of 9.10% [2]. - Oppenheimer analyst Brian Bittner downgraded the stock to Perform from Outperform, citing fair valuation after strong performance in 2025 [3]. - Stifel reiterated a "Hold" rating with a price target of $160.00, suggesting that a potential divestment of Pizza Hut could mitigate underperformance risks and enhance growth visibility, albeit at the cost of lower absolute earnings [5]. Leadership and Strategic Decisions - New leadership initiated a formal review of strategic options for Pizza Hut, Yum! Brands' most challenged brand, to maximize shareholder value. Goldman Sachs and Barclays have been appointed as financial advisors for this review, although no timeline has been set for its completion [4]. Company Overview - Yum! Brands, Inc. operates a vast franchise network that includes KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill, spanning over 155 countries globally [6].

Core Viewpoint - Yum! Brands, Inc. is exploring strategic options for its Pizza Hut business, which could impact its growth outlook and investor confidence [1][2][3]. Group 1: Analyst Ratings and Price Targets - Stifel has reiterated its Hold rating on Yum! Brands with a price target of $160, indicating a cautious outlook as the company reviews its Pizza Hut operations [1]. - Piper Sandler has reaffirmed its Neutral rating with a price target of $158, suggesting that a complete sale of Pizza Hut could be dilutive to earnings [4]. Group 2: Strategic Review and Growth Potential - Stifel's analysis suggests that divesting Pizza Hut could enhance the company's growth outlook by removing a source of underperformance risk, although it may lead to lower absolute earnings [2]. - The strategic review under the new CEO is seen as a serious effort to boost shareholder value, with Stifel indicating a more constructive view on Yum! Brands [3]. Group 3: Market Sentiment and Valuation - Piper Sandler expressed skepticism about the potential for multiple expansion following a divestment, noting that any valuation gains from such a move may already be reflected in the stock price [5]. - The overall sentiment among analysts is mixed, with some believing that the potential benefits of divesting Pizza Hut are uncertain and may not lead to significant valuation improvements [5].

Core Insights - Yum! Brands, Inc. has a market capitalization of $41.1 billion and operates globally with brands like KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, serving diverse food categories in over 150 countries [1] Financial Performance - Analysts predict Yum! Brands will report an adjusted EPS of $1.46 for Q3 2025, reflecting a 6.6% increase from $1.37 in the same quarter last year [2] - For fiscal 2025, the adjusted EPS is forecasted to be $6, a 9.5% rise from $5.48 in fiscal 2024, with further growth anticipated to $6.57 in fiscal 2026 [3] Stock Performance - Yum! Brands' shares have increased by 10.3% over the past 52 weeks, underperforming the S&P 500 Index's 14.8% return and the Consumer Discretionary Select Sector SPDR Fund's 18.4% increase [4] Recent Developments - The company's shares fell by 5.1% on August 5 after reporting Q2 2025 adjusted EPS of $1.44, which missed analyst estimates due to rising ingredient costs, higher advertising spending, and a 13% increase in total expenses, while same-store sales grew only 2%, below the forecast of 2.37% [5] Analyst Sentiment - The consensus view on Yum! Brands stock is cautiously optimistic, with a "Moderate Buy" rating from 29 analysts, including nine recommending "Strong Buy" and 20 indicating "Hold." The average price target is $160.08, suggesting an 8% potential upside from current levels [6]

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]