Latest Ratios: P/E Ratio 12.8x · EV/EBITDA 12.1x · ROE N/A. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $44.4B | $42.1B | $38.2B | $37.2B | $37.1B | $41.9B | $33.3B | $31.5B | $30.2B | $29.0B | $25.3B |
| Enterprise Value | $55.6B | $53.3B | $49.9B | $48.8B | $49.4B | $53.6B | $44.2B | $42.2B | $40.0B | $37.3B | $33.7B |
| P/E Ratio → | 12.82 | 27.21 | 25.70 | 23.33 | 28.03 | 26.60 | 36.93 | 24.39 | 19.60 | 21.65 | 15.45 |
| P/S Ratio | 5.05 | 5.12 | 5.06 | 5.26 | 5.43 | 6.37 | 5.90 | 5.63 | 5.32 | 4.93 | 3.99 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 27.45 | 25.66 | 26.70 | 28.25 | 32.35 | 28.41 | 29.11 | 28.18 | 32.10 | 40.69 | 32.39 |
| P/OCF | 22.10 | 20.92 | 22.64 | 23.23 | 26.03 | 24.58 | 25.54 | 23.98 | 25.72 | 28.13 | 21.04 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.48 | 6.61 | 6.89 | 7.23 | 8.14 | 7.83 | 7.54 | 7.04 | 6.34 | 5.31 |
| EV / EBITDA | 12.09 | 19.47 | 19.36 | 19.73 | 21.19 | 23.26 | 26.83 | 20.66 | 16.45 | 12.36 | 16.93 |
| EV / EBIT | 21.98 | 20.67 | 20.89 | 20.92 | 22.58 | 24.16 | 28.31 | 22.70 | 17.47 | 13.70 | 20.42 |
| EV / FCF | — | 32.49 | 34.85 | 36.99 | 43.06 | 36.30 | 38.64 | 37.71 | 42.49 | 52.32 | 43.14 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.2% | 46.2% | 47.5% | 49.4% | 48.3% | 48.1% | 47.5% | 50.3% | 46.7% | 45.7% | 41.9% |
| Operating Margin | 30.8% | 30.8% | 31.8% | 32.8% | 32.0% | 32.5% | 26.6% | 34.5% | 40.4% | 47.0% | 26.5% |
| Net Profit Margin | 19.0% | 19.0% | 19.7% | 22.6% | 19.4% | 23.9% | 16.0% | 23.1% | 27.1% | 22.8% | 25.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | 415.4% |
| ROA | 20.9% | 20.9% | 22.9% | 26.4% | 22.4% | 26.7% | 16.3% | 27.6% | 32.7% | 24.8% | 24.2% |
| ROIC | 48.1% | 48.1% | 46.9% | 49.1% | 49.1% | 51.0% | 39.7% | 64.3% | 90.6% | 40.6% | 20.3% |
| ROCE | 41.7% | 41.7% | 46.2% | 50.7% | 50.1% | 49.0% | 38.2% | 59.2% | 69.3% | 69.8% | 37.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 4.35 | 4.35 | 4.77 | 4.87 | 5.43 | 5.27 | 7.06 | 5.52 | 4.14 | 3.25 | 4.58 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 4.09 | 4.09 | 4.53 | 4.66 | 5.27 | 5.05 | 6.62 | 5.22 | 4.02 | 2.75 | 4.22 |
| Debt / FCF | — | 6.83 | 8.15 | 8.74 | 10.71 | 7.89 | 9.53 | 9.53 | 10.38 | 11.63 | 10.74 |
| Interest Coverage | 5.15 | 5.15 | 4.89 | 4.54 | 4.15 | 4.08 | 2.88 | 3.83 | 5.07 | 6.11 | 5.42 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.35 | 1.35 | 1.47 | 1.26 | 0.97 | 1.08 | 1.01 | 0.99 | 0.93 | 1.66 | 1.08 |
| Quick Ratio | 1.35 | 1.35 | 1.47 | 1.26 | 0.97 | 1.08 | 1.01 | 0.99 | 0.93 | 1.65 | 1.06 |
| Cash Ratio | 0.47 | 0.47 | 0.56 | 0.40 | 0.22 | 0.34 | 0.44 | 0.39 | 0.22 | 1.01 | 0.51 |
| Asset Turnover | — | 1.00 | 1.12 | 1.14 | 1.17 | 1.10 | 0.97 | 1.07 | 1.38 | 1.11 | 1.16 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | 245.46 | 99.73 |
| Days Sales Outstanding | — | 37.37 | 40.13 | 39.05 | 36.28 | 35.81 | 36.75 | 40.63 | 38.31 | 35.71 | 23.77 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.9% | 2.0% | 1.8% | 1.7% | 1.4% | 1.7% | 1.6% | 1.5% | 1.4% | 2.9% |
| Payout Ratio | 50.6% | 50.6% | 50.6% | 42.5% | 49.0% | 37.6% | 62.6% | 39.5% | 30.0% | 31.0% | 45.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.8% | 3.7% | 3.9% | 4.3% | 3.6% | 3.8% | 2.7% | 4.1% | 5.1% | 4.6% | 6.5% |
| FCF Yield | 3.6% | 3.9% | 3.7% | 3.5% | 3.1% | 3.5% | 3.4% | 3.5% | 3.1% | 2.5% | 3.1% |
| Buyback Yield | 1.2% | 1.3% | 1.2% | 0.1% | 3.2% | 3.8% | 0.7% | 2.6% | 7.9% | 6.8% | 21.3% |
| Total Shareholder Yield | 3.0% | 3.2% | 3.1% | 2.0% | 5.0% | 5.2% | 2.4% | 4.2% | 9.4% | 8.2% | 24.3% |
| Shares Outstanding | — | $278M | $285M | $285M | $290M | $302M | $307M | $313M | $329M | $355M | $400M |
Includes 30+ ratios · 29 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying YUM stock.
Yum! Brands, Inc.'s current P/E ratio is 12.8x. The historical average is 17.7x. This places it at the 29th percentile of its historical range.
Yum! Brands, Inc.'s current EV/EBITDA is 12.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.0x.
Based on historical data, Yum! Brands, Inc. is trading at a P/E of 12.8x. This is at the 29th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Yum! Brands, Inc.'s current dividend yield is 1.76% with a payout ratio of 50.6%.
Yum! Brands, Inc. has 46.2% gross margin and 30.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Yum! Brands, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative equity with leverage
Metrics are mathematically derived from official filings.
Premium Multiples Price in Royalty Durability
Based on EDBL's reported figures, YUM trades at 29.9x trailing P/E and 20.8x EV/EBITDA, a premium to McDonald's at 23.3x and 17.3x, which suggests investors are paying for royalty durability and digital platform optionality.
The forward P/E of 25.7x and PEG of 2.20 imply the market still expects meaningful earnings growth, but the multiple leaves limited margin for error if unit growth slows. Compared with peers, the premium appears to reflect YUM's asset-light structure and multi-brand diversification rather than an unusually high reported growth rate. Investors should monitor whether the 1.7% dividend yield and buybacks can sustain support if the premium compresses.
Franchise Mix Anchors Elevated Operating Margins
As reported in the quarterly statements, YUM's gross margin has held between 44% and 49% and operating margin near 28% to 34% across most periods, consistent with a predominantly franchised royalty model.
The stability of gross and operating margins suggests the royalty stream is largely insulated from the store-level cost pressures affecting operators. Net margins swing widely, including outliers far above operating margin, which points to non-operating or tax-related items rather than durable earnings improvement. Analysts should therefore anchor earning power on operating margin rather than headline net margin.
Negative Equity Distorts Conventional Return Metrics
According to reported quarterly ratios, YUM's ROIC has ranged from roughly 11.8% to 16.1% in most periods, while ROE is not meaningful given a stockholders' deficit of about -$6.2 billion in the latest quarter.
ROIC in the low-to-mid teens suggests the asset-light model generates adequate returns on invested capital, though it has not clearly compounded across the ten quarters shown. Because book equity is negative, ROE loses analytical meaning and should not be used to compare YUM with peers. The more informative read is whether ROIC holds as buybacks continue to shrink the capital base.
Debt Service Comfortable but Balance Sheet Stretched
Based on reported figures, YUM's interest coverage has generally run between about 4.6x and 5.6x, while total debt sits near $11.6 billion against a deficit-level equity base, leaving leverage high relative to assets.
Coverage in the mid-single digits indicates debt service is currently manageable from operating earnings, but the margin of safety is narrower than headline margins suggest. The persistent stockholders' deficit and debt-funded shareholder returns may warrant closer observation if refinancing costs rise. Investors should watch whether coverage holds through a weaker demand cycle rather than relying on the latest quarter.
Peer Premium May Not Survive Multiple Compression
Based on the supplied peer data, YUM's 29.9x P/E sits well above McDonald's 23.3x and Wendy's 9.3x, which may indicate the valuation is more exposed to sentiment shifts than the reported operating margins alone would suggest.
The most plausible challenge to the bullish read is that the premium rests on platform and diversification narratives that are harder to verify than the reported royalty figures. If growth normalizes toward the mid-single digits implied by recent revenue trends, the PEG of 2.20 would look stretched. Investors should weigh whether the multiple reflects durable compounding or a temporary re-rating that could reverse.