Yum! Brands, Inc. — Earnings Quality Grade F
YUM · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 37 days, change -0 days YoY
AR growth 8.5% vs revenue growth 8.8%
Revenue 8.8%, CFFO 19.0%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 44.4% is >2x revenue growth 8.8%
SG&A/Gross Profit = 33.3%. Normal
Gross margin 46.2%, change -1.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.29. Profits backed by cash
FCF $1.6B, FCF/NI = 1.05
Accruals ratio = -5.5%. Low accruals
Cash $0.7B covers only 5% of debt $13.2B
Balance Sheet Health
Goodwill+Intangibles $1.9B = -26% of equity. Manageable
Debt/EBITDA = 4.7x (>4x). Financial stress
Other assets 10.5% vs revenue 8.8%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 63% YoY
Manipulation Score
M-Score = -2.58 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10