Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.

Yum! Brands appears to be a high-quality franchise business, but no longer cheap, with strong profitability and notable balance sheet constraints. A P/E ratio of 20.1 is only slightly above the industry median, so on earnings the company does not look extremely expensive; however, a P/S of 5.1 and a P/FCF of 26.6 are significantly above the sector, which limits re-rating potential. The P/B ratio is especially concerning at an abnormally high level, and combined with negative shareholders’ equity, it makes book-based valuation largely uninformative, though it still highlights the weakness of the capital structure. At the same time, operating efficiency is very strong: an operating margin of around 31%, net margin of 25.4%, ROA of 27.5%, and ROI of 64.1% are well above industry benchmarks and point to high returns on assets and the franchise model. Margin trends are generally stable, although gross margin has gradually declined from last year’s levels, indicating some pressure on gross profit. Revenue and earnings have generally grown over recent periods, and net income and EPS remain at high levels, supporting the fundamental valuation. EPS guidance also remains strong and slightly above the current TTM, suggesting that operating momentum is being maintained. On the other hand, liquidity is weak: a current ratio of 0.59 and a quick ratio of 0.0 indicate reliance on stable cash flow and limited working capital cushion. Long-term debt remains very high, and total liabilities significantly exceed assets, so financial risk is above average even with strong profitability. The dividend yield of around 0.52% looks modest and is not the main reason to own the stock. Overall, the fundamentals support business quality and earnings resilience, but the high valuation on revenue and cash flow, weak liquidity, and heavy balance sheet structure limit upside. For an investor, this is more a story of stable quality and moderate potential than a case for expecting aggressive valuation expansion.

Yum! Brands, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Strong profitability and earnings growth support YUM, but its high valuation on revenue/FCF, weak liquidity, and heavy balance sheet limit the upside.

Looking at the universe of stocks we cover at Dividend Channel, on 9/9/26, Yum! Brands Inc (Symbol: YUM) will trade ex-dividend, for its quarterly dividend of $0.75, payable on 9/18/26. As a percentage of YUM's recent stock price of $149.29, this dividend works out to approximately 0.50%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from YUM is likely to continue, and whether the current estimated yield of 2.01% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of YUM shares, versus its 200 day moving average:
Looking at the chart above, YUM's low point in its 52 week range is $137.33 per share, with $170.14 as the 52 week high point — that compares with a last trade of $149.91.
According to the ETF Finder at ETF Channel, YUM makes up 4.51% of the AGF U.S. Market Neutral Anti-Beta Fund ETF (Symbol: BTAL) which is trading lower by about 0.6% on the day Tuesday. (see other ETFs holding YUM).
In Tuesday trading, Yum! Brands Inc shares are currently off about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Further YUM Research:

Yum! Brands About To Put More Money In Your Pocket (YUM)

McDonald’s Corporation MCD is trading at a valuation that appears relatively attractive compared with the broader restaurant industry. The company’s forward 12-month P/E multiple of 19.15X is below the industry average of 22.57X, suggesting that investors are taking a more cautious view of the fast-food giant despite its powerful brand, global scale and resilient franchise-driven business model.
P/E (F12M)
The discount follows a difficult period for the stock. MCD’s shares have declined 20.8% over the past six months, compared with a 10.2% drop for the restaurant industry. The stock has also lagged the S&P 500’s 12% gain, as investors have favored companies with stronger near-term growth prospects. McDonald’s has underperformed restaurant peers including Starbucks Corporation SBUX, Yum! Brands, Inc. YUM and Chipotle Mexican Grill, Inc. CMG.
The key question for investors is whether this weakness reflects longer-lasting fundamental concerns or creates an attractive entry point into a globally recognized restaurant leader.
U.S. Weakness Weighs on Performance
McDonald’s second-quarter results highlighted both its strengths and the areas requiring improvement. Global comparable sales increased 1.3%, while systemwide sales rose 4% in constant currency. Adjusted EPS came in at $3.38, up 5% year over year on a constant-currency basis.
However, the U.S. business remained a key weakness. Comparable sales increased just 0.8% in the quarter, as execution issues affected traffic and customer experience. Management attributed roughly two-thirds of the U.S. traffic shortfall compared with expectations to problems surrounding value execution. The weaker-than-expected impact of the FIFA marketing campaign compounded the underperformance.
The company also acknowledged that restaurant teams were burdened by too many simultaneous product launches, promotions and operational changes. Management plans to simplify restaurant operations and provide crews with greater support, while increasing targeted digital offers and reallocating marketing spending toward proven value programs such as Extra Value Meals.
Importantly, McDonald’s does not view these issues as a fundamental strategy problem. Management believes the primary opportunity is to improve execution, particularly around value, operations and marketing.
International Business Provides Stability
McDonald’s international operations continue to offer an important counterbalance to U.S. weakness. Comparable sales increased 1.5% in International Operated Markets, with Germany, Australia and the United Kingdom performing well. International Developmental Licensed Markets posted 1.9% comparable-sales growth, led by Japan, which delivered its 10th consecutive quarter of positive comparable guest-count growth.
Management expects comparable-sales growth in both international segments to accelerate sequentially in the third quarter, offering a potential source of momentum while the U.S. business works through its execution challenges.
Beverages and McDonald’s NEXT Could Support Growth
One of the more encouraging developments is McDonald’s new beverage platform. Early results in the United States, Canada and Germany exceeded expectations, with beverages generating new occasions, higher guest checks and strong food attachment. More than half of beverage-related traffic is occurring after lunch, while average checks are about 50% above the full-day average.
Longer term, management is positioning McDonald’s NEXT as a growth framework focused on improving food taste and quality, enhancing hospitality, simplifying restaurant operations and strengthening customer engagement. The company expects productivity gains to help fund investments associated with the strategy.
MCD is also maintaining the restaurant expansion plans, although it has pushed the 50,000-restaurant target to 2028 from 2027 because of inflationary development costs and a more pressured consumer environment. McDonald’s still expects to open roughly 2,600 gross restaurants in 2026.
McDonald’s Growth Outlook Remains Encouraging
Analysts continue to see room for earnings growth at McDonald’s, although estimates have been mixed recently. Over the past 30 days, the Zacks Consensus Estimate for 2026 earnings increased 2 cents to $12.87 per share, while the 2027 estimate declined 13 cents to $13.89. Despite the revisions, the estimates imply solid year-over-year EPS growth of 5.5% in 2026 and 7.9% in 2027.
Revenue expectations also point to continued expansion. The Zacks Consensus Estimate projects revenues of $28.15 billion in 2026 and $29.51 billion in 2027, representing year-over-year growth of 4.7% and 4.8%, respectively. These projections indicate that McDonald’s remains positioned for steady top-line and earnings growth, supported by its global scale, restaurant expansion and ongoing initiatives to strengthen customer traffic and engagement.
Why Investors Should Hold MCD
McDonald’s has strong long-term potential, backed by its powerful brand, global presence and franchise model. Its beverage platform and McDonald’s NEXT strategy could support growth.
However, the U.S. business still faces execution issues in value, operations and marketing. Management is taking steps to address these challenges, but the recovery may take time. Existing investors should hold MCD and wait for clearer signs of improvement. New investors may want to wait before buying, as stronger U.S. traffic and execution would provide greater confidence in the recovery.
MCD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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McDonald's Trades at 19.15X P/E: Is This a Discounted Opportunity?

In a move aimed at easing domestic food prices, U.S. President Donald Trump announced a temporary 90-day waiver last Friday on out-of-quota tariffs for up to 300,000 metric tons of imported ground beef trimmings. The policy suspends the customary duties that typically apply to beef imports exceeding established quota limits, effectively opening the floodgates for cheaper foreign beef to enter America.
This decision comes at a critical juncture for the American beef industry, considering the U.S. cattle herd has shrunk to its lowest level since 1951, caused by years of drought, rising feed costs and persistent inflationary pressures that have forced ranchers to reduce their herds. The smaller cattle herd has driven domestic beef prices to record highs, placing immense strain on foodservice operators, restaurants and ultimately consumers, who have been facing higher menu prices lately.
As a direct result of this tariff relief, wholesale ground beef costs are projected to decline meaningfully over the next three months. This should translate into immediate margin expansion for fast-food giants and meat distributors that rely heavily on blended beef products for their core menus.
Consequently, companies with significant exposure to ground beef consumption — alongside the exchange-traded funds (ETFs) that hold them — are well-positioned to benefit from this policy shift. Following the tariff waiver, lower input costs for imported lean beef trimmings should create a distinct opportunity for investors to capitalize on the improving profitability of these key players in the foodservice supply chain.
But before diving into the specifics of these ETFs, let us first examine the companies benefiting from this tariff waiver so that investors can make a fully informed decision about where to allocate their capital.
Key Corporate Beneficiaries of Lower Beef Costs
The primary beneficiaries of this tariff waiver fall into two distinct categories, each with its unique exposure to the ground beef supply chain.
The first one is the fast-food chains, which blend cheaper beef trimmings with domestic fatty cattle trimmings to produce their burger patties, taco fillings and other beef-based menu items. With wholesale costs expected to decline, operating margins for companies with heavy beef menus are set to expand significantly.
Under this category, McDonald's Corporation MCD, as the largest single buyer of beef in the United States, will perhaps be the most significant beneficiary of this waived tariff. MCD relies heavily on lean beef trimmings from global trade partners such as Australia and South America to manufacture its burger patties.
On the other hand, Yum! Brands YUM, while primarily known for KFC and Pizza Hut, is also expected to benefit from this policy shift through Taco Bell's massive ground beef consumption.
The second category of beneficiaries that stand to gain from the lower input costs of beef as a result of the 90-day tariff waiver is major meat processors and distributors. These companies with international sourcing networks are uniquely positioned to capitalize on the duty-free imports. They can blend lower-cost foreign beef with domestic trimmings, improving their processing margins and competitive positioning in the U.S. market.
These companies include JBS N.V JBS, the world’s largest meat processor, as well as food distributors such as US Foods Holding Corp. USFD and Sysco Corporation SYY, which purchase wholesale beef and distribute it to foodservice chains across America.
ETFs to Gain
Considering the aforementioned discussion, the following ETFs can be expected to gain from the recently waived tariffs on beef import.
State Street Consumer Discretionary Select Sector SPDR ETF XLY
This fund, with assets under management (AUM) worth $23.10 billion, offers exposure to 47 companies in specialty retail; broadline retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; automobile components; distributors; leisure products; and diversified consumer services. MCD holds the fourth spot in this fund, with 4.16% weightage, while YUM holds the 29th spot with 1.07% weightage.
XLY has inched up 0.9% over the past year and charges 8 basis points (bps) as fees. It traded at a good volume of 4.16 million shares in the last trading session.
Invesco Leisure and Entertainment ETF PEJ
This fund, with a market value worth $373.2 million, offers exposure to 31 companies that are principally engaged in the design, production or distribution of goods or services in the leisure and entertainment industries. SYY holds the third spot in this fund, with 4.99% weightage, while USFD holds the 11th spot with 3.29% weightage.
PEJ has rallied 15.4% over the past year and charges 57 bps as fees. It traded at a volume of 0.02 million shares in the last trading session.
First Trust Consumer Staples AlphaDEX ETF FXG
This fund, with net assets worth $235.8 million, offers exposure to 40 stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology. JBS holds the third spot in this fund, with 4.59% weightage.
FXG has risen 2.3% over the past year and charges 63 bps as fees. It traded at a volume of 0.002 million shares in the last trading session.
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ETFs to Gain as Trump Waives Off Tariffs on Beef Imports Temporarily

(RTTNews) - Pizza Hut, a subsidiary of Yum! Brands Inc. (YUM) on Tuesday launched a new national football-season campaign with Pepsi and NFL quarterback Josh Allen, centered on the message that "gameday starts with the Hut."
The campaign features advertising spots starring Allen and Pizza Hut mascot Hutty, while the company is also sponsoring quarterbacks across the country with a chance to win free pizza for life.
As part of the campaign, Pizza Hut introduced two limited-time offers: a $10 large three-topping pizza and a new Triple Treat Box GameDay Edition, featuring two pizzas, breadsticks and cinnamon sticks starting at $21.99. Customers can add a 2-liter bottle of Pepsi for $2.
Pizza Hut is also offering limited-edition pizza boxes that can be converted into football field goal posts, with two boxes creating a football field when placed back-to-back.
The offers are available at participating Pizza Hut locations nationwide, in restaurants, online and through the Pizza Hut app.

Pizza Hut Launches Football Season Campaign With Pepsi, Josh Allen

In trading on Monday, shares of Yum! Brands Inc (Symbol: YUM) crossed above their 200 day moving average of $154.63, changing hands as high as $158.05 per share. Yum! Brands Inc shares are currently trading up about 2.6% on the day. The chart below shows the one year performance of YUM shares, versus its 200 day moving average:
Looking at the chart above, YUM's low point in its 52 week range is $137.33 per share, with $170.14 as the 52 week high point — that compares with a last trade of $156.94. The YUM DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Further YUM Research:

Yum! Brands Shares Cross Above 200 DMA

The Wendy's Company WEN is confronting a sharp traffic problem as new leadership begins a broad turnaround aimed at restoring customer demand. In the second quarter of fiscal 2026, U.S. traffic declined 12.5%, contributing to a 7% decrease in U.S. same-restaurant sales. A 5.6% increase in average check provided a partial offset, while U.S. same-restaurant sales improved sequentially by 80 basis points from the first quarter. Still, the magnitude of the traffic decline highlights the challenge facing the restaurant chain as it works to reconnect with consumers.
Management sees the traffic weakness as more than consumer pressure, citing erosion in food-quality differentiation, a weaker value proposition, inconsistent execution and ineffective traffic-driving marketing. Wendy’s five-point reset targets these issues through menu and value improvements, sharper branding, stronger operations, better digital engagement and improved restaurant economics. The menu overhaul will span ingredients, items, categories and pricing architecture.
Better execution and digital engagement could support recovery. U.S. customer satisfaction improved, while company-operated restaurants outperformed the broader U.S. system in same-restaurant sales by 280 basis points. Wendy’s also invested $8.3 million in technology, including app enhancements and targeted marketing. However, July traffic remained in line with fiscal second-quarter trends, and management expects continued traffic pressure through the second half of fiscal 2026 while it develops the broader turnaround plan.
Wendy’s five-point reset directly targets several factors contributing to its traffic weakness, particularly value, food quality, marketing and execution. If these initiatives improve customer perception and frequency, demand could gradually recover. However, with traffic trends still weak, measurable improvement in visits and same-restaurant sales will be the clearest test of whether the turnaround is gaining traction.
How WEN Stacks Up Against Key QSR Rivals
Starbucks Corporation SBUX provides a relevant turnaround benchmark for Wendy’s because it is using stronger store execution, menu innovation and loyalty engagement to rebuild transactions. Under its Back to Starbucks strategy, Green Apron Service has improved staffing, operating routines and service consistency, while marketing and beverage innovation are creating more reasons for customers to visit across dayparts. These efforts helped drive U.S. comparable sales growth of 7.9% in the third quarter of fiscal 2026, including a 4.2% increase in transactions, while Starbucks Rewards reached 35.8 million 90-day active U.S. members.
Yum! Brands, Inc. YUM offers another useful comparison through Taco Bell, which continues to combine value, innovation, cultural relevance and digital engagement to drive traffic and market-share gains. Taco Bell delivered 7% same-store sales growth in the second quarter of 2026, outperforming the broader QSR industry for the ninth consecutive quarter. Digital sales mix reached 47%, up 5 percentage points year over year, with more than half of that growth coming from first-party loyalty channels. Its restaurant-level margin also expanded 170 basis points to 26.2%, demonstrating how stronger demand can translate into improved restaurant economics.
Against this backdrop, Wendy’s faces a demanding traffic recovery. Starbucks is already translating improved execution and loyalty engagement into transaction growth, while Taco Bell is using value, innovation and digital capabilities to sustain QSR outperformance.
WEN’s Price Performance, Valuation & Estimates
Shares of Wendy’s have gained 12.5% in the past three months, outperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 index.
WEN Three-Month Price Performance
From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.75, below the industry’s average of 3.12.
WEN’s P/S Ratio (Forward 12-Month) vs. Industry
WEN’s earnings estimates for 2026 and 2027 have trended downward in the past 30 days. The revised estimates for 2026 imply year-over-year growth of 2.1%, while 2027 estimates imply a year-over-year decline of 39.8%.
EPS Trend of WEN Stock
WEN’s Zacks Rank
WEN stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Wendy's Traffic Falls 12.5%: Can Its 5-Point Reset Revive Demand?

(RTTNews) - Yum! Brands (YUM) announced the appointment of Stephen B. Bratspies to its Board of Directors, effective August 26, 2026. Bratspies most recently served as Chief Executive Officer of HanesBrands, where he also served as a member of the Board of Directors. Bratspies currently serves on the Board of Directors of Target and The Clorox Company.
Prior to joining HanesBrands, Bratspies served as Chief Merchandising Officer at Walmart, where he also held several other senior leadership positions, including Executive Vice President, Food, and Executive Vice President, General Merchandise. Earlier in his career, Bratspies served as Chief Marketing Officer of Specialty Brands, a frozen foods company.
At last close, Yum! Brands stock was trading at $152.33 on NYSE.

Former HanesBrands CEO Steve Bratspies To Join Board Of Yum! Brands

Key Points
The transaction involved 2,035 shares with an estimated value of ~$294,790 based on the execution price of $144.86 per share.
This disposition reduced the executive's total equity stake by 28%.
The reported holdings now include 5,206 shares held directly and 33 shares held indirectly through a 401(k) plan.
Sean Tresvant, Chief Consumer Officer and the Taco Bell division's CEO, disposed of 2,035 shares of Yum! Brands, Inc. (NYSE:YUM) on August 18, 2026, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
~$294,790
Shares sold
2,035
Post-transaction shares (directly held)
5,206
Post-transaction shares (indirectly held)
33
Post-transaction value
$758,921.54
Transaction value based on SEC Form 4 weighted average sale price ($144.86); post-transaction value based on August 18, 2026 market close ($144.86).
Key questions
What were the specific circumstances of this share disposition?
The transaction was a non-discretionary event where 2,035 shares were withheld by the company to satisfy tax obligations resulting from the exercise of stock options on August 18, 2026.
How does this impact the executive's total equity position?
Following the filing, Sean Tresvant retains 5,206 shares in direct ownership and 33 shares held indirectly through a 401(k) plan, representing a 28% reduction from the previous total holdings.
What is the current market context for the company?
Shares of Yum! Brands were priced at $145.93 as of the August 19, 2026 market close, following a one-year total return of -3% as of the transaction date.
Does the executive maintain further exposure to the company through derivative securities?
In this filing, the insider reported a remaining 0.23 restricted stock units (RSUs) after exercising 4,101 RSUs to add to his direct holdings.
Company Overview
Share Price (as of market close 2026-08-19)
$145.93
Market Capitalization
$40.2 billion
Revenue (TTM)
$8.7 billion
Net Income (TTM)
$2.2 billion
Company Snapshot
Yum! Brands operates a diversified portfolio of globally recognized quick-service restaurant brands including KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill, generating revenue through company-operated restaurants and franchise royalties across multiple food categories including chicken, pizza, Mexican-style cuisine, and chargrilled burgers.
The company employs a capital-efficient franchise-based business model whereby it creates, manages, and franchises restaurant concepts globally, allowing for rapid expansion with limited capital expenditure while collecting ongoing royalties and fees from franchise partners.
Yum! Brands serves a broad consumer base across the quick-service restaurant segment, targeting value-conscious consumers seeking convenient meal options across diverse culinary preferences in both developed and emerging markets globally.
Yum! Brands is a leading global quick-service restaurant enterprise with a market cap of $40.2 billion, demonstrating significant scale in the restaurant franchising sector. The company's competitive advantage derives from its portfolio of iconic, globally recognized brands with established customer loyalty and operational expertise in franchise management across diverse cuisines and geographies.
Its asset-light franchise model provides operational leverage and consistent cash generation while enabling geographic and demographic diversification across its four primary restaurant concepts.
What this transaction means for investors
Taco Bell CEO Sean Tresvant's Aug. 18 sale of Yum! Brands stock was a non-discretionary transaction to fulfill tax withholding obligations related to the exercise of 4,101 RSUs. After the tax-related sale, he was left with 5,206 directly held shares.
While this disposition does not reflect the insider's view on the stock, Tresvant has made several discretionary sales in 2026. After exercising this latest round of RSUs, he effectively has no more restricted stock units as of this filing, and only 33 shares in a 401(k) plan along with his direct shares. This does not instill confidence in Tresvant's long-term view of the stock.
Yum! Brands has gone through ups and downs over the past year. Its Pizza Hut business has not performed well, and the company reached agreements to sell the division. Despite this, the restaurant giant achieved $2.2 billion in sales during the second quarter, a solid 12% increase over the prior year's $1.9 billion.
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A Yum! Brands Insider Reduced Their Total Equity Stake by a Substantial 28%. Here's a Deeper Look at the Transaction.

Domino’s Pizza, Inc. DPZ already sits atop the global pizza industry, but management sees considerable room to widen its lead. The company estimates that it holds roughly 23% of the pizza category, well below the 40%-50% market shares commanded by leading quick-service restaurant brands in some other categories. While that comparison does not necessarily imply that Domino’s can reach those levels, management believes the gap highlights substantial long-term market-share potential.
The company’s argument rests primarily on order growth. Since the end of 2008, Domino’s has more than doubled the number of U.S. orders flowing through its system, generating double-digit market-share gains. Management estimates that the transaction growth helped produce roughly $7 billion in incremental retail sales, more than 2,100 net new stores and an almost 240% increase in franchisee store-level EBITDA. Domino’s views this combination of rising orders and disciplined pricing as the foundation for further share gains.
Third-party delivery platforms could widen Domino’s addressable customer base. The company believes it is already the No. 1 pizza brand on both Uber and DoorDash, yet management says it has not reached what it considers its fair share of the aggregator market. Domino’s continues to cite roughly 50% incrementality for aggregator orders, suggesting that a meaningful portion of those transactions comes from customers who might not otherwise have ordered directly from the brand.
Unit development represents another pathway to higher market share. Domino’s ended the second quarter with 22,531 stores globally, including 7,231 U.S. stores and 15,300 international locations. The system added 209 net stores during the quarter and 995 net stores over the trailing four quarters.
Risks remain. U.S. same-store sales rose just 0.1% in the second quarter as lower ticket offset stronger orders, while franchisee profitability pressures prompted Domino’s to trim its 2026 U.S. store-growth outlook to approximately 175 units. Still, sustained order growth, aggregator expansion and unit development suggest Domino’s 23% share could leave meaningful runway for further gains.
How Peers SBUX and YUM Pursue Growth
Domino’s is not alone in leaning on customer acquisition, digital engagement and unit expansion to build long-term growth. Its peers Starbucks Corporation SBUX and Yum! Brands, Inc. YUM are also using brand strength, innovation and technology to deepen customer engagement and expand their addressable markets.
Starbucks is gaining momentum through its Back to Starbucks strategy, which focuses on improving store execution, customer experience, menu innovation and loyalty. In third-quarter fiscal 2026, U.S. comparable sales rose 7.9%, supported by a 4.2% increase in transactions and 3.6% ticket growth. Starbucks Rewards reached 35.8 million 90-day active U.S. members, while Refreshers delivered double-digit U.S. revenue growth and helped the company broaden customer occasions. Starbucks also sees substantial whitespace for new coffeehouses in the United States and internationally, supporting its longer-term expansion opportunity.
Yum! Brands is similarly using value, innovation, digital engagement and development to drive share gains across its portfolio. Taco Bell delivered 7% same-store sales growth in the second quarter of 2026, outperforming the broader QSR industry for the ninth consecutive quarter, while digital mix reached 47%, up 5 percentage points year over year. Meanwhile, KFC posted 7% unit growth and sees significant international whitespace, including an estimated 20,000-unit opportunity across India, Southeast Asia, West Africa and Brazil. YUM’s strategy combines customer relevance with stronger restaurant economics and technology-driven engagement to support sustained growth.
DPZ’s Price Performance, Valuation & Estimates
Domino’s shares have lost 24.7% in the past year, underperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 index.
DPZ 1-Year Price Performance
In terms of its forward 12-month price-to-earnings ratio, DPZ is trading at 16.75, down from the industry’s 21.57.
DPZ P/E (F12M)
DPZ’s earnings estimates for 2026 and 2027 have trended downward in the past 30 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 4.2% and 7.5%, respectively.
DPZ Estimate Trend
DPZ stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Domino's Holds 23% Pizza Share: How Much Growth Runway Is Left?

For Immediate Release
Chicago, IL – August 20 2026 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McDonald’s Corporation’s MCD, Starbucks Corp. SBUX and Yum! Brands, Inc. YUM.
Here are highlights from Thursday’s Analyst Blog:
McDonald's Stock Down -19% in 6 Months: Buying Opportunity?
McDonald’s Corporation’s shares have declined 18.9% in the past six months, underperforming the industry’s 10.1% decline and the S&P 500’s 11.7% gain. The decline reflects concerns about weak U.S. traffic, inconsistent execution of value offerings and marketing missteps. The company acknowledged that U.S. comparable sales slowed sharply in the second quarter, rising just 0.8%, below its expectations.
The pressure continued into the early part of the third quarter. Management said U.S. comparable sales were slightly negative in July, indicating that the company’s corrective measures will take time to produce results. Against this backdrop, investors may wonder whether the stock’s decline has created an attractive entry point or whether more weakness could lie ahead.
On the other hand, MCD has also underperformed compared with industry peers such as Starbucks Corp. and Yum! Brands, Inc.
U.S. Execution Remains a Key Concern
McDonald’s biggest near-term challenge is getting its U.S. business back on track. Management said the company’s value proposition has improved considerably, with base menu prices now below those of nearby competitors and the $5 Meal Deal and Extra Value Meals performing well. However, execution of the new Every Day Affordable Price menu was inconsistent.
Only about 60% to 65% of the U.S. system was executing the recommended pricing architecture for the under-$3 menu. The company also reduced the number of digital offers and removed its Buy One, Add One for $1 promotion, which hurt visits from loyal customers. Management estimated that these value-related decisions accounted for roughly two-thirds of the U.S. customer traffic shortfall compared with expectations in the quarter.
Restaurant operations also suffered because employees had to manage too many simultaneous product launches, promotions and marketing campaigns. This increased complexity, hurt service times and weighed on customer satisfaction. McDonald’s plans to simplify restaurant operations and reduce noncustomer-facing activities to allow employees to focus more on service.
McDonald’s Has Several Levers for Recovery
Despite the U.S. weakness, the latest results were not uniformly negative. Global comparable sales increased 1.3% in the second quarter, while systemwide sales rose 4% on a constant-currency basis. International markets continued to perform better, with comparable sales increasing 1.5% in International Operated Markets and 1.9% in International Developmental Licensed Markets.
The company is already taking steps to revive U.S. traffic. It plans to increase national digital flash offers, personalize promotions for frequent customers and redirect marketing spending toward proven-value offerings. Management also expects restaurant execution to improve relatively quickly because many of the operational changes are within its control. Marketing improvements are expected to take longer, with management targeting stronger execution in 2027.
Another encouraging area is beverages. McDonald’s new beverage platform is performing ahead of initial expectations in the United States, Canada and Germany. Management said more than half of beverage traffic is occurring after lunch, suggesting the platform is creating incremental occasions. Beverage orders are also benefiting from strong food attachment and higher average checks.
Long-Term Growth Strategy Offers Upside
McDonald’s is also preparing to roll out its McDonald’s > NEXT strategy, focused on improving food taste and quality, strengthening hospitality and simplifying restaurant operations. The company expects productivity opportunities to help fund the investments associated with the strategy. More details are expected at its Investor Day in September.
The company continues to expand the restaurant base, although it pushed the target of reaching 50,000 restaurants globally to 2028 from 2027 because of inflationary development costs and a pressured consumer environment. It remains on track to open about 2,600 gross restaurants in 2026.
Financially, McDonald’s remains resilient. Second-quarter adjusted EPS was $3.38, representing a 5% increase year over year on a constant-currency basis. The company generated more than $4 billion in restaurant margins during the quarter, while its year-to-date adjusted operating margin stood at 46.9%.
McDonald's Growth Projection
Analysts have slightly raised their 2026 earnings expectations for McDonald’s over the past 30 days, with the Zacks Consensus Estimate increasing 2 cents to $12.88 per share. In contrast, the 2027 estimate has been lowered 10 cents to $13.93 per share. Despite these revisions, the consensus estimates point to earnings growth, with 2026 and 2027 EPS expected to increase 5.7% and 8.1% year over year, respectively.
Revenue growth is also expected to remain steady. The Zacks Consensus Estimate projects revenues of $28.18 billion for 2026 and $29.61 billion for 2027, representing year-over-year growth of 4.8% and 5.1%, respectively.
MCD Stock Trades at a Discount
McDonald’s currently trades at a discount to its industry based on the forward 12-month price-to-earnings (P/E) ratio. The stock’s multiple stands at 19.71X, below the industry average of 21.65X. By comparison, Starbucks and Yum! Brands trade at higher forward P/E multiples of 34.61X and 21.14X, respectively.
Wrapping Up
Overall, McDonald’s remains a fundamentally strong business, but its near-term outlook is clouded by weak U.S. traffic, execution issues, softer marketing performance and a challenging consumer environment. Existing investors may prefer to hold as management is actively addressing these issues, while the company’s strong brand, resilient margins, international performance, beverage growth and long-term strategy provide a solid foundation for recovery.
However, the recent weakness in U.S. comparable sales and continued pressure early in the current quarter suggest that the turnaround is still in its early stages. Therefore, new investors may want to wait for clearer signs of sustained improvement in U.S. traffic and execution before initiating a fresh position, even though the stock’s relatively attractive valuation could limit downside once the business begins to regain momentum.
MCD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Indicator	TTM Median
P/E	20.11 18.27
Price/Sales	5.12 0.68
P/B	15.99K 1.73
P/FCF	26.58 13.56

Indicator	TTM Median
ROE	0.00 14.93
ROA	27.47 5.11
ROI	64.11 8.85
Net Worth	42.47 0.84
Quick Ratio	0.00 0.86
Current Ratio	0.59 1.39

Indicator	TTM Median
Net Profit Margin	25.42 5.79
Operating Margin	31.01 8.49
Gross Margin	68.13 39.55
Return on tangible equity	0.00 21.78

Indicator	TTM Median
EPS	1.62 0.55
EPS Forecast	1.59 0.50
Revenue	2.17B 193.00M
Gross Profit	1.47B —
EBITDA	714.00M —

Yum! Brands, Inc.

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