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With a market cap of $40.5 billion, Yum! Brands, Inc. (YUM) is a leading global quick-service restaurant company operating through its iconic brands: KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. The company develops, operates, and franchises restaurants across more than 150 countries and territories, primarily through franchise and license agreements.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Linde fits this criterion perfectly. With each brand specializing in its category - chicken, pizza, Mexican-style food, and chargrilled burgers, Yum! Brands is recognized as a global leader in multi-branding and consumer choice.
Shares of the Louisville, Kentucky-based company have fallen 10.6% from its 52-week high of $163.30. Yum! Brands’ shares have risen 1.5% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 8.2% gain over the same time frame.
In the longer term, YUM stock is up 8.8% on a YTD basis, lagging behind SPX’s 11.1% rise. Moreover, shares of the parent company of KFC, Taco Bell and Pizza Hut have increased 9.9% over the past 52 weeks, compared to the 18.9% return of the SPX over the same time frame.
Yet, YUM stock has been trading above its 200-day moving average since February despite a few fluctuations.
Yum! Brands’ shares fell 5.1% on Aug. 5 after the company reported Q2 2025 adjusted EPS of $1.44, missing analyst estimates. Rising ingredient costs, higher advertising spending, and total expenses climbing 13% pressured margins, while worldwide same-store sales grew just 2%, short of the 2.37% forecast. Demand softness was most evident at Taco Bell, which contributes 38% of revenue, as U.S. same-store sales growth slowed to 4%.
However, rival McDonald's Corporation (MCD) has lagged behind YUM stock. MCD stock has gained 5.8% on a YTD basis and 5.7% over the past 52 weeks.
Despite the stock’s underperformance relative to the SPX, analysts remain moderately optimistic on YUM. The stock has a consensus rating of “Moderate Buy” from the 28 analysts in coverage, and the mean price target of $159.78 is a premium of 9.4% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
