Yum! Brands (YUM) Stock Trades At A Discount On Its 23% Five Year Return

Yum! Brands has seen its share price drift lower this year even as the business leans into new concepts at KFC and works through a traffic setback at Taco Bell, which puts the spotlight firmly on what investors are paying for its cash flows. With the stock last closing at US$138.63, the key issue is whether that market price lines up with what a Discounted Cash Flow (DCF) view of the company’s future cash generation suggests. Over the past 5 years the stock has returned 23.3%, which raises...