Louisville, Kentucky-based Yum! Brands, Inc. (YUM) develops, operates, franchises, and licenses quick service restaurants. Valued at $41.4 billion by market cap, the company prepares, packages, and sells a menu of food items.
Shares of this fast-food company have underperformed the broader market over the past year. YUM has gained 4.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. In 2026, YUM’s stock rose 1%, compared to the SPX’s 8.1% rise on a YTD basis.
Narrowing the focus, YUM’s outperformance is apparent compared to the AdvisorShares Restaurant ETF (EATZ). The exchange-traded fund has gained about 3% over the past year. However, the ETF’s 4.8% returns on a YTD basis outshines YUM’s gain over the same time frame.
On Apr. 29, YUM shares closed up more than 2% after reporting its Q1 results. Its adjusted EPS of $1.50 topped Wall Street expectations of $1.39. The company’s revenue was $2.1 billion, beating Wall Street forecasts of $2 billion.
For the current fiscal year, ending in December, analysts expect YUM’s EPS to grow 11.7% to $6.76 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 28 analysts covering YUM stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, and 17 “Holds.”
The configuration has been consistent over the past three months.
On May 4, BMO Capital analyst Andrew Strelzik kept a “Market Perform” rating on YUM and raised the price target to $168, implying a potential upside of 9.9% from current levels.
The mean price target of $173.29 represents a 13.4% premium to YUM’s current price levels. The Street-high price target of $191 suggests an upside potential of 25%.
On the date of publication, Neha Panjwani 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.