• Yum! Brands, Inc. reported its second quarter 2025 earnings on August 5, revealing US$1.93 billion in revenue and US$374 million in net income, both higher than the same period last year.
• While the quarter showed stronger sales, net income for the first half of 2025 was US$628 million, down from US$681 million a year earlier, reflecting mixed profitability trends despite revenue growth.
• We'll now explore how these mixed profit and revenue results may affect Yum! Brands' ongoing investment narrative and international growth plans.

AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Yum! Brands Investment Narrative Recap

Owning Yum! Brands means believing in the company's ability to drive growth through international expansion and digital innovation, while managing the ongoing challenges of changing consumer demand and cost inflation. The latest earnings report did not significantly alter the most important short-term catalysts, continued tech platform rollouts and global store openings, nor did it materially worsen the biggest risk: potential softness in key mature markets like the US and Europe.

Looking at recent company announcements, the most relevant development is the upcoming CEO transition, with Chris Turner set to take the helm in October 2025. Leadership changes often bring fresh perspectives but also raise questions about continuity, especially as Yum! pursues ambitious digital and international initiatives to offset mixed profitability trends seen this year.

However, investors should also be aware that persistent underperformance in certain regions could still threaten Yum!’s growth story if...

Read the full narrative on Yum! Brands (it's free!)

Yum! Brands' outlook anticipates $9.5 billion in revenue and $2.0 billion in earnings by 2028. This is based on 6.4% annual revenue growth and a $0.6 billion increase in earnings from the current $1.4 billion level.

Uncover how Yum! Brands' forecasts yield a $158.57 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range from US$125.64 to over US$10,723,781.76, highlighting a wide spread in outlooks. While expansion in international markets remains a key catalyst, these differing views underscore that a variety of factors influence how the company’s prospects are weighed.

Explore 4 other fair value estimates on Yum! Brands - why the stock might be a potential multi-bagger!

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 1 key reward and 3 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.

Ready For A Different Approach?

Our top stock finds are flying under the radar-for now. Get in early:

• Find companies with promising cash flow potential yet trading below their fair value.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com