• Yum! Brands recently reported fourth-quarter and full-year 2025 results, with higher sales, revenue and net income year-on-year, and approved a US$0.75 quarterly dividend per share, while board member Keith Barr resigned on February 10, 2026 to take an external leadership role.
• Management highlighted that nearly 60% of systemwide sales now come through digital channels, underscoring how technology is reshaping customer ordering and operations across KFC, Taco Bell and Pizza Hut.
• We’ll now examine how Yum! Brands’ stronger-than-expected revenue and rising digital sales mix affect its existing investment narrative and outlook.

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Yum! Brands Investment Narrative Recap

To own Yum! Brands, you need to believe its asset light, franchise model and tech focused ordering platform can keep driving global system sales despite uneven demand across brands like KFC, Taco Bell and Pizza Hut. The latest revenue beat and higher digital mix reinforce that thesis, while Keith Barr’s board departure looks immaterial for near term catalysts around digital execution and international unit growth, and does not materially change the key risk of shifting consumer preferences.

The most relevant new data point is Yum!’s latest quarter, where revenue rose to US$2,514 million and net income to US$535 million, alongside nearly 60% of systemwide sales coming through digital channels. That combination of higher earnings and a rising digital mix ties directly into the core catalyst that Byte and app based ordering could support higher transaction volumes and better franchisee economics, even as the company continues to wrestle with pockets of soft demand.

Yet beneath the strong headline results, Yum! Brands still faces a meaningful risk investors should be aware of around...

Yum! Brands' narrative projects $9.5 billion revenue and $2.0 billion earnings by 2028. This requires 6.3% yearly revenue growth and an earnings increase of about $0.6 billion from $1.4 billion today.

Uncover how Yum! Brands' forecasts yield a $170.08 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see fair value for Yum! Brands between US$135.38 and US$171.33, highlighting a wide span of individual assumptions and methods. Against that backdrop, Yum!’s heavy reliance on KFC International for divisional profit reminds you that differing views on geopolitical and currency risk can materially influence how you judge the company’s long term performance potential, so it is worth weighing several of these perspectives side by side.

Explore 4 other fair value estimates on Yum! Brands - why the stock might be worth as much as 7% more than the current price!

Build Your Own Yum! Brands Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Yum! Brands research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Yum! Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Yum! Brands' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.