Louisville, Kentucky-based Yum! Brands, Inc. (YUM) develops, operates, franchises, and licenses quick service restaurants. Valued at $40.8 billion by market cap, the company prepares, packages, and sells a menu of food items. 

Shares of this fast-food company have underperformed the broader market over the past year. YUM has gained 6.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.7%. However, in 2025, YUM’s stock rose 8.6%, surpassing the SPX’s marginal rise on a YTD basis. 

Narrowing the focus, YUM’s underperformance is also apparent compared to the AdvisorShares Restaurant ETF (EATZ). The exchange-traded fund has gained about 18.3% over the past year. However, YUM’s gains on a YTD basis outshine the ETF’s 2.3% returns over the same time frame.

On Apr. 30, YUM shares closed up more than 1% after reporting its Q1 results. Its adjusted EPS of $1.30 surpassed Wall Street expectations of $1.29. The company’s revenue was $1.79 billion, falling short of Wall Street forecasts of $1.84 billion.

For the current fiscal year, ending in December, analysts expect YUM’s EPS to grow 9.5% to $6 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.

Among the 27 analysts covering YUM stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, and 21 “Holds.”

The configuration is consistent over the past three months.

On May 5, Stifel Nicolaus analyst Chris O`Cull maintained a “Hold” rating on YUM and set a price target of $148, implying a potential upside of 1.6% from current levels.

The mean price target of $159.79 represents a 9.7% premium to YUM’s current price levels. The Street-high price target of $185 suggests an upside potential of 27%.