Yum! Brands, Inc. YUM

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
83/100
Strong

About Yum! Brands, Inc.

Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally. The company operates in four segments: KFC Division, Taco Bell Division, Pizza Hut Division, and Habit Burger & Grill Division. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill … Full YUM analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 46.2% (top 11%) and operating margin at 31.3% (top 2%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.98), demonstrating pricing resilience across cycles.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
95

Where YUM ranks in Restaurants

Yum! Brands, Inc. ranks #1 of 57 scored companies in Restaurants by moat score — the top 2%. That makes it the widest moat in the group.

Moat scores for companies ranked near YUM in Restaurants
# Company Moat score Rating
1 Yum! Brands, Inc. YUM 83/100 Strong
2 Wingstop Inc. WING 81/100 Strong
3 Domino's Pizza Inc DPZ 80/100 Strong
4 McDonald's Corporation MCD 79/100 Strong
5 Chipotle Mexican Grill, Inc. CMG 78/100 Strong
6 Rave Restaurant Group, Inc. RAVE 76/100 Strong
7 Wendy's Company (The) WEN 72/100 Moderate
8 Darden Restaurants, Inc. DRI 72/100 Moderate
9 Restaurant Brands International QSR 70/100 Moderate

See every General Corporate company ranked by moat score →

How YUM scores on the Corporate Default defenses

Pricing Power

Score 95 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 73 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 94 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 92 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 64 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 78 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding YUM's moat

What is Yum! Brands, Inc.'s moat score?

Yum! Brands, Inc. (YUM) scores 83 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #1 of 57 scored companies in Restaurants, the top 2%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 56 companies in Restaurants. Its strongest defense is Pricing Power (95/100) and its weakest is Resilience (64/100).

How does Yum! Brands, Inc. compare with other Restaurants companies?

Yum! Brands, Inc. ranks #1 of 57 scored companies in Restaurants by moat score. That is the widest moat in Restaurants. The companies ranked closest are Wingstop Inc. (WING) at 81 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 56 companies in Restaurants. The defenses are then weighted to produce the overall score out of 100.

Why is Yum! Brands, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Yum! Brands, Inc.?

The Corporate Default template measures 6 defenses, and YUM scores: Pricing Power (95), Cost Advantage (73), Customer Stickiness (94), Capital Efficiency (92), Resilience (64), Scale & Market Position (78). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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