Yum! Brands (YUM) Financials

Yum! Brands (NYSE: YUM) has demonstrated consistent revenue growth over the past four years, with operating revenue increasing steadily from approximately $1.64 billion in Q1 2023 to $1.93 billion in Q2 2025. This upward trend highlights strong business performance and growing market presence.

Income Statement Highlights:

• Operating revenue rose by roughly 17% from Q1 2023 ($1.64B) to Q2 2025 ($1.93B), signaling strong sales growth.
• Net income has increased from $300 million in Q1 2023 to $375 million in Q2 2025, showing improved profitability.
• Basic earnings per share improved from $1.07 in Q1 2023 to $1.34 in Q2 2025, indicating earnings growth on a per-share basis.
• Selling, General & Administrative (SG&A) and marketing expenses have increased proportionally with revenue, reaching $302 million and $428 million respectively in Q2 2025, which may pressure margins if unchecked.
• Interest expense remains elevated around $120-130 million per quarter, impacting net income from operations.

Cash Flow Insights:

• Net cash from operating activities increased from $349 million in Q1 2023 to $446 million in Q2 2025, reflecting healthy cash generation from the core business.
• Capital expenditures remain significant, with consistent investments in property, plant, and equipment, for example $71 million in Q2 2025, which could constrain free cash flow.
• The company has repurchased a substantial amount of common equity, $109 million in Q2 2025, indicating shareholder returns but also cash outflows.
• Dividend payments have steadily increased to $0.71 per share in Q2 2025, reflecting commitment to returning capital but also regular cash burden.
• Net cash from financing activities is negative due to debt repayments and equity repurchases, totaling -$298 million in Q2 2025, pointing towards active balance sheet management.

Balance Sheet Overview:

• Total assets increased moderately from about $5.75 billion in Q1 2023 to approximately $6.92 billion in Q2 2025, reflecting a strong asset base.
• Total liabilities have risen over this period, with long-term debt near $10.4 billion in Q2 2025, indicating substantial leverage.
• Total common equity is negative at approximately -$7.68 billion in Q2 2025, which suggests accumulated deficits or significant liabilities exceed shareholder equity, a factor investors should monitor.

Summary:

Yum! Brands has shown solid revenue and earnings growth with strong cash flow generation. The company continues to invest heavily in its assets and rewards shareholders through dividends and stock repurchases. However, rising costs, substantial debt levels, and a negative equity position are notable risks. Retail investors should weigh Yum!'s growth prospects against its capital structure and expense trends.