Quality score · YUM · Consumer Discretionary

Is Yum! Brands Inc. a quality business?

Yum! Brands Inc. (YUM) scored on five pillars from its reported financial statements, and ranked against 179 Consumer Discretionary companies.

6.6/ 10
Solid quality
as of October 17, 2026
Profitability
9.4 Strong
Solvency
4.2 Average
Growth
4.2 Average
Efficiency
6.3 Average
Predictability
8.0 Strong
Strongest pillar: Profitability · Weakest: Solvency

Yum! Brands Inc. (YUM) scores 6.6 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and solvency is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Yum! Brands Inc. have an economic moat?

Not enough data

We cannot judge Yum! Brands Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Yum! Brands Inc. scores

The Quality Score for YUM stands at 6.6 out of 10 as of October 17, 2026, which puts Yum! Brands Inc. in the solid quality band. This band covers companies that do several things well but not everything, so the pillar detail below matters more than the headline. It rolls Yum! Brands Inc.’s profitability, solvency, growth, efficiency and predictability into one number, each judged against the norms of its sector.

Set against 179 Consumer Discretionary companies, Yum! Brands Inc. lands at the 81st percentile, inside the top quarter of the group. A typical company in the group scores 5.0, and the best quarter starts from 6.1. Yum! Brands Inc. is well above that typical reading.

Pillar by pillar

Profitability

Profitability scores 9.4 out of 10, which reads as strong. The median across 176 Consumer Discretionary companies is 5.1, so Yum! Brands Inc. is well above its peers on this pillar and ranks at the 95th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.

Solvency

Yum! Brands Inc.’s solvency score is 4.2 out of 10 (average). Against a median of 5.9 among 141 Consumer Discretionary companies, that is well below the group and the 27th percentile. Leverage in the middle of the range is rarely a problem in good years, and it is worth watching how quickly it would tighten in a weak one.

Growth

Growth scores 4.2 out of 10, which reads as average. The median across 149 Consumer Discretionary companies is 4.0, so Yum! Brands Inc. is in line with its peers on this pillar and ranks at the 51st percentile. Growth near the median is neither a reason to buy nor a concern, but it does mean the quality case rests more on the other pillars.

Efficiency

Yum! Brands Inc.’s efficiency score is 6.3 out of 10 (average). Against a median of 6.2 among 170 Consumer Discretionary companies, that is in line with the group and the 54th percentile. Efficiency near the median says the operation is neither unusually lean nor unusually capital hungry.

Predictability

Yum! Brands Inc.’s predictability score is 8.0 out of 10 (strong). Against a median of 5.0 among 178 Consumer Discretionary companies, that is well above the group and the 96th percentile. High predictability means the company’s results have moved steadily from year to year, which makes the other pillars more trustworthy as a guide.

Strongest and weakest pillar

The gap between Yum! Brands Inc.’s best and worst pillar is wide: profitability at 9.4 against solvency at 4.2, 5.2 points apart. An average of two readings this different deserves a closer look than the headline number. A profitability lead usually reflects something durable in the business model rather than a good year. When solvency is the soft spot, the question is how much of the cash flow is already spoken for by debt.

What would move the score

Closing the gap on solvency would do the most for the overall. At the median of Consumer Discretionary companies, 5.9, Yum! Brands Inc. would score about 6.9 instead of 6.6. The weights add up to 100 points (profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and Yum! Brands Inc. has a reading on every pillar.

Yum! Brands Inc. and similar companies

For a fair comparison, start with companies of a similar size: the Consumer Discretionary companies below are nearest to Yum! Brands Inc. by market value, each scored on the same pillars.

What each pillar measures

Profitability

9.4 / 10

How much profit the company generates from its capital and sales.

Solvency

4.2 / 10

The company’s ability to service debt and meet its obligations.

Growth

4.2 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

6.3 / 10

How well assets and earnings convert into cash and output.

Predictability

8.0 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Yum! Brands Inc. a quality business?

On this reading Yum! Brands Inc. scores 6.6 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is solvency. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Yum! Brands Inc. compare with other Consumer Discretionary companies?

Yum! Brands Inc. ranks at the 81st percentile of the 179 Consumer Discretionary companies Lemma publishes a score for. The median there is 5.0 and the top quarter starts at 6.1, against Yum! Brands Inc.’s 6.6.

What does the YUM quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for YUM are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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