Yum! Brands Inc
NYSE:YUM

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Yum! Brands Inc Logo
Yum! Brands Inc
NYSE:YUM
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Price: 146 USD 0.69% Market Closed
Market Cap: 40.7B USD

Operating Margin
Yum! Brands Inc

33.5%
Current
32%
Average
7.3%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
33.5%
=
Operating Profit
2.5B
/
Revenue
7.5B

Operating Margin Across Competitors

Yum! Brands Inc
Glance View

Economic Moat
None
Market Cap
40.7B USD
Industry
Hotels, Restaurants & Leisure

Yum! Brands, Inc., the progeny of a strategic spin-off by PepsiCo in the late 1990s, has crafted a distinctive narrative in the fast-food landscape. With its headquarters nestled in Louisville, Kentucky, Yum! Brands orchestrates an impressive portfolio of iconic restaurant chains—Taco Bell, KFC, and Pizza Hut. Each brand dances to its own rhythm within the quick-service sector, with Taco Bell serving its signature Mexican-inspired fare, KFC tantalizing taste buds with its secret-recipe chicken, and Pizza Hut leading the charge in the global pizza deliverables arena. By maintaining a decentralized approach, these brands are afforded the autonomy to adapt and innovate based on local market demands and consumer preferences while benefiting from the overarching corporate resources and strategies of Yum!. Economically, Yum! Brands thrives on a business model that vigorously leverages franchising—allowing it to accelerate global expansion while minimizing capital investment risk. This franchise-centric strategy not only helps optimize operational efficiencies and brand penetration across diverse geographies, but also ensures robust cash flow generation through upfront franchise fees and ongoing royalty streams. The company draws revenues from a combination of franchise royalties and fees, sales at company-owned restaurants, and property rent from its leased locations to franchise partners. Staying agile amidst changing market dynamics, Yum! continues to infuse digital innovation and sustainability initiatives into its operations, driving both top-line growth and an enduring connection with the modern consumer palate.

YUM Intrinsic Value
123.44 USD
Overvaluation 15%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
33.5%
=
Operating Profit
2.5B
/
Revenue
7.5B
What is the Operating Margin of Yum! Brands Inc?

Based on Yum! Brands Inc's most recent financial statements, the company has Operating Margin of 33.5%.

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