Yum! Brands (NYSE:YUM) Executive Sells Shares Amid Financial Scrutiny

• Mezvinsky Scott, CEO of the KFC Division at Yum! Brands (NYSE:YUM), sold 272 shares at $148.28 each, retaining 1,755 shares.

• Yum! Brands' high valuation and modest growth prospects are concerning, with a net debt 7.55 times its free cash flow.

• The company's financial ratios, such as a P/E ratio of 29.56 and a dividend yield of 1.91%, highlight investor sentiment and financial health.

On July 1, 2025, Mezvinsky Scott, CEO of the KFC Division at Yum! Brands (NYSE:YUM), sold 272 shares of the company's common stock at $148.28 each. After this transaction, Scott retains 1,755 shares. Yum! Brands, known for its asset-light franchisor model, operates popular fast-food chains like KFC, Pizza Hut, and Taco Bell.

Yum! Brands faces scrutiny due to its high valuation and modest growth prospects. The company's net debt is 7.55 times its free cash flow, which is concerning. This high debt level, combined with a low-interest coverage ratio, poses risks if business performance declines or interest rates rise.

Yum! Brands is valued at nearly 30 times its free cash flow, with a dividend yield of 1.91%. This high valuation leaves little room for error or economic downturns. The company's price-to-earnings (P/E) ratio is 29.56, indicating investor willingness to pay a premium for its earnings.

The price-to-sales ratio of Yum! Brands is 5.40, reflecting the value placed on each dollar of sales. The enterprise value to sales ratio is 6.79, showing the company's total valuation relative to its sales. The enterprise value to operating cash flow ratio is 30.39, highlighting the relationship between valuation and cash flow from operations.

Yum! Brands has a debt-to-equity ratio of -1.46, indicating a higher level of debt compared to equity. The current ratio is 1.40, suggesting the company's ability to cover short-term liabilities with short-term assets. The earnings yield is 3.38%, providing insight into the return on investment for shareholders.