
YUM! Brands (YUM) Stock Forecast & Price Target
YUM! Brands (YUM) Analyst Ratings
Bulls say
Yum Brands is positioned for significant growth with Taco Bell projected to expand from 7,600 U.S. locations to 10,000 long-term, while also aiming for a substantial international footprint of over 3,000 locations by 2030. The company's management anticipates an increase in margins from 24.2% in 2024 to between 25%-26% by 2030 due to higher ticket digital orders and improved franchisee profitability, as evidenced by the growth in locations achieving 10%+ EBITDA margins from 20% to 50%. Additionally, plans to enhance menu innovation and a shift towards high-margin sales, including beverages and higher ticket items, are expected to drive same-store sales growth, with Taco Bell projected to realize an increase to 8% in early 2025.
Bears say
Yum Brands faces significant headwinds in its international development, highlighted by the termination of the Turkey master franchise agreement, leading to 538 closures, along with an additional 200 closures in the Pizza Hut segment. Despite steady net restaurant growth of 4.5%, overall sales have declined for key brands, with Pizza Hut experiencing a 2% decline and KFC International decelerating, indicating struggles in maintaining sales momentum amidst increased competition in the quick-service restaurant (QSR) market. The financial outlook remains cautious, as the company's earnings per share (EPS) estimates for 2024-2025 are projected to fall 1%-2% below consensus, further restraining its valuation multiples.
This aggregate rating is based on analysts' research of YUM! Brands and is not a guaranteed prediction by Public.com or investment advice.
YUM! Brands (YUM) Analyst Forecast & Price Prediction
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