What moat does Yum! Brands have?

The advantage is the franchisee already operating the brand and the customer who already recognizes the restaurant. The franchisee can sell less. The moat narrows if the royalty falls with sales, or if one of the four brands lags.

How do you read the Yum! Brands radar?

Health is the debt of a company that collects a fee, not the restaurant's. Quality is the royalty after advertising, not the store margin. Growth follows franchisee sales and new restaurants, and the two need not rise together. P/E is read against a year of an expensive menu, not against that year as normal. Shareholder return is the dividend, checked against that fee. Do not call it recurring cash already counted.

Which multiples matter for Yum! Brands?

The P/E of a year of heavy restaurant sales is not the earnings if the royalty falls. EV/EBITDA is read without consolidating the franchisee's restaurant as if it belonged to Yum. Do not use McDonald's multiple as if the four brands were one. A dash if YUM is missing.

What does this Yum! Brands analysis leave out?

Not advice on Yum. Vaultflake does not count restaurants or treat the royalty as fixed. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

Yum! Brands (YUM) analysis

Yum! Brands, Inc.

Sector:Consumer Discretionary · Restaurant Franchises

Country:United States

Profile and moat

Yum collects a royalty on sales at KFC, Taco Bell, Pizza Hut and Habit. Most of the restaurants belong to franchisees, who put up the site and the staff. This report does not count restaurants or countries, and it does not treat the model as nearly all franchised against a figure. McDonald's, Restaurant Brands and Domino's compete in pieces of the same trade.

If the restaurant sells less, the royalty falls. The franchisee carries the food and the rent. Yum still spends on advertising, and on a food-safety problem if one arrives. The four brands do not move together. A year of high menu prices is not normal earnings.

Cash is that fee, not the restaurant's margin. It has to fit. It is not a predictable stream.

Yum! Brands (YUM) analysis

Yum! Brands, Inc.

Sector:Consumer Discretionary · Restaurant Franchises

Country:United States

Profile and moat

Cash is that fee, not the restaurant's margin. It has to fit. It is not a predictable stream.

Yum! Brands (YUM) analysis

Profile and moat

Yum! Brands (YUM) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does Yum! Brands have?

How do you read the Yum! Brands radar?

Which multiples matter for Yum! Brands?

What does this Yum! Brands analysis leave out?

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