Yum! Brands operates quick service restaurants. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company was founded in 1997 and is based in Louisville, Kentucky.
YUM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Yum Brands Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Yum Brands Inc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for YUM, they are:
Its compound free cash flow growth rate, as measured over the past 5.79 years, is -0.06% -- higher than merely 20.81% of stocks in our DCF forecasting set.
Yum Brands Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 16.83% of tickers in our DCF set.
As a business, Yum Brands Inc experienced a tax rate of about 3% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than only 21.48% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GFASY, CIDM, LUVU, WPP, and DLB can be thought of as valuation peers to YUM, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
The global case tally for the coronavirus that causes COVID-19 passed 5 million on Thursday after the biggest one-day increase since the start of the outbreak, as a top U.S. scientist cautioned that people should not rely on a vaccine and the labor market continued to show massive job losses.
Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX)(ENGMF)(FSE:2AV) is excited to announce that the Vancouver Titans have entered into a new partnership agreement with Pizza Hut Canada designating Pizza Hut as the Official Pizza of the team and their fans. “We are incredibly thrilled to deliver this exciting partnership to our fans and can’t wait to make Pizza Hut an integral part of the Titans gameday experience,” said Tim Holloway, Esports Director at the Vancouver Titans.
Prime storefronts left empty by failed businesses. As the coronavirus permanently shutters some small businesses, big fast-food brands like Domino's Pizza, Chipotle and Wendy's that were doing well before the crisis want to grow - or continue pre-existing expansion plans - after the pandemic subsides. David Deno, chief executive officer of Outback Steakhouse parent company Bloomin' Brands, told Reuters in an interview that "I don't mean to wish ill on anybody, but there's going to be real estate opportunities," for new stores or relocations to areas with "better visibility, better access and better parking."