Yum! Brands, Inc. (YUM) Stock Forecasts

Summary

Out list title is the same as we used almost two years to the day, when we last highlighted the restaurant sector. Consumers continue to face challenging times. Inflation, though it’s come down in many areas, is still high for many common household expenses. Chicken was $2.08 per pound this August versus $1.47 in August 2021. That’s a 41% price hike. Ground beef is up 43% and electricity is up 36% during the same period, according to the Bureau of Labor Statistics Consumer Price Index data. However, as we noted two years ago, Americans like going out to eat and don’t seem deterred by the higher prices. In the most recently published Retail Sales report, reflecting August 2025, the category of “Food Services and Drinking Places” was up 5.5% compared to overall sales (which were up 3.8% for the first eight months of the year when compared to the same period a year ago). For sure, the industry has some headwinds, which takes us back to food prices. The higher prices hurt consumers spending power but also drive up overhead for restaurants. Chicken is one of the most popular menu items across the range of restaurants, from fast food to casual dining to formal dining. Then there are obesity drugs, as some analysts worry that these now-popular drugs will curb appetites for sugary or fatty menu items (disproportionately offered by certain restaurants). But we see