Yum! Brands, Inc.
YUM Consumer Cyclical Restaurants
Yum! Brands, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $8.2 billion, up 8.81% from fiscal 2024. In the quarter to June 2026, revenue grew 12.2%, EPS grew 131.3%, free cash flow grew 8.53% and total debt rose 7.78%, each against the same quarter a year earlier. Member of the S&P 500; dividend growth for five consecutive years, revenue growth for five, operating cash flow growth for three.
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Yum! Brands, Inc. (YUM) Altman Z-score
Yum! Brands, Inc.'s Altman Z-score for fiscal 2025 is 2.55, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.55 | 0.07 |
| FY2024 | 2.48 | 0.20 |
| FY2023 | 2.28 | 0.43 |
| FY2022 | 1.85 | (0.30) |
| FY2021 | 2.15 | 0.69 |
| FY2020 | 1.46 | (0.18) |
| FY2019 | 1.64 | (0.45) |
| FY2018 | 2.08 | (0.82) |
| FY2017 | 2.91 | 0.65 |
| FY2016 | 2.26 | (1.05) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.06 | — | 0.08 | |
| Retained earnings / total assets | (0.86) | — | −1.20 | |
| EBIT / total assets | 0.31 | — | 1.04 | |
| Market value of equity / total liabilities | 2.72 | — | 1.63 | |
| Sales / total assets | 1.00 | — | 1.00 | |
| Altman Z-score | Grey zone | 2.55 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.75 | ||
Z and Z″ put Yum! Brands, Inc. in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CMG Chipotle Mexican Grill, Inc. compare | 7.0× |
| TXRH Texas Roadhouse, Inc. compare | 5.7× |
| MCD McDonald's Corporation compare | 4.9× |
| YUMC Yum China compare | 4.0× |
| DPZ Domino's Pizza Inc compare | 3.3× |
| DRI Darden Restaurants, Inc. compare | 2.6× |
| YUM Yum! Brands, Inc. | 2.5× |
| SBUX Starbucks Corporation compare | 2.4× |
| QSR Restaurant Brands International Inc. compare | 1.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on YUM
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement