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Posted by
Two Blokes Jun 30 -
Filed in
Stock
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3 views
Yum! Brands' asset-light franchisor model offers predictable cash flows, but the current valuation is excessively high for its modest growth prospects. The company's elevated net debt levels (7.55x FCF) and low-interest coverage ratio pose significant risks if business performance or rates worsen. At nearly 30x free cash flow and a 1.91% dividend yield, YUM is priced for perfection, leaving little margin for error or downturns.
