Yum! Brands vs Lennar

Yum! Brands, Inc. and Lennar Corp. are compared on this page to illuminate differences in business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

Yum! Brands, Inc. and Lennar Corp. are compared on this page to illuminate differences in business models, financial performance, and market context in a neutral, accessible way. Educational content, ...

Comparison Snapshot

Key Financial Metrics

YUM

Metric

LEN

$45.24B

Market Cap

$27.93B

1.42%

Potential Profit

4.49%

Buy

Analyst Rating

Hold

Why It's Moving

Yum Brands Mixes Revenue Strength with Pizza Hut Challenges as Analysts Bump Targets

Revenue beat signals robust demand, with Taco Bell comps and KFC growth offsetting pressures and backing the company's expansion to over 62,000 restaurants.
Pizza Hut uncertainty mounts as CEO Aaron Powell sold $1.94 million in shares and firm plans ~250 U.S. closures, flagging strategic reviews including potential divestitures.
Analysts upbeat with TD Cowen lifting to Outperform at $180 and quarterly dividend rising to $0.75, highlighting Taco Bell-led upside despite EPS miss.

Sentiment:

⚖️Neutral

Lennar Faces Analyst Downgrades and Bearish Bets Amid Housing Sector Headwinds

Keefe, Bruyette & Woods cut their price target on Lennar from $125 to $115 with a 'market perform' rating, joining a chorus of cautious calls amid consensus leaning toward 'Reduce'.
Bearish options activity surges with a Put/Call Ratio of 2.37, as traders bet against the stock nearing historical valuation highs despite strong liquidity.
Recent quarterly results showed EPS of $2.03 missing expectations by $0.27, with revenue up slightly but year-over-year declines signaling softer demand and tighter incentives.

Sentiment:

🐻Bearish

Yum Brands Mixes Revenue Strength with Pizza Hut Challenges as Analysts Bump Targets

Revenue beat signals robust demand, with Taco Bell comps and KFC growth offsetting pressures and backing the company's expansion to over 62,000 restaurants.
Pizza Hut uncertainty mounts as CEO Aaron Powell sold $1.94 million in shares and firm plans ~250 U.S. closures, flagging strategic reviews including potential divestitures.
Analysts upbeat with TD Cowen lifting to Outperform at $180 and quarterly dividend rising to $0.75, highlighting Taco Bell-led upside despite EPS miss.

Sentiment:

⚖️Neutral

Lennar Faces Analyst Downgrades and Bearish Bets Amid Housing Sector Headwinds

Keefe, Bruyette & Woods cut their price target on Lennar from $125 to $115 with a 'market perform' rating, joining a chorus of cautious calls amid consensus leaning toward 'Reduce'.
Bearish options activity surges with a Put/Call Ratio of 2.37, as traders bet against the stock nearing historical valuation highs despite strong liquidity.
Recent quarterly results showed EPS of $2.03 missing expectations by $0.27, with revenue up slightly but year-over-year declines signaling softer demand and tighter incentives.

Sentiment:

🐻Bearish

Investment Analysis

Yum! Brands

YUM

Pros

Yum! Brands benefits from a globally diversified portfolio of leading quick-service restaurant brands, including KFC, Pizza Hut, Taco Bell, and Habit Burger, driving consistent revenue streams across multiple markets.
The company demonstrates solid profitability, with a trailing twelve-month net income exceeding $1.4 billion and a dividend yield near 2%, reflecting stable cash generation and shareholder returns.
Analyst sentiment remains generally positive, with consensus forecasts suggesting modest upside potential over the next year, supported by expectations for steady, though not rapid, growth.

Considerations

Yum! Brands faces intense competition in the crowded quick-service restaurant sector, which may pressure market share and limit pricing power despite its strong brand portfolio.
Growth rates are relatively modest compared to faster-growing peers, suggesting that investor expectations for outperformance may be tempered in the near term.
The company’s valuation multiples, such as a forward P/E above 23, are elevated relative to historical norms, potentially limiting margin for error if earnings disappoint.

Lennar

LEN

Pros

Lennar stands out as one of the largest and most geographically diversified homebuilders in the United States, providing resilience against regional housing market downturns.
The company has demonstrated industry-leading operational efficiency, with a focus on controlling construction costs and maintaining healthy profit margins even during periods of fluctuating demand.
Lennar’s balance sheet remains strong, with ample liquidity and manageable leverage, positioning it to capitalise on acquisition opportunities and navigate potential macroeconomic headwinds.

Considerations

Lennar’s business is highly cyclical and sensitive to interest rate movements, with rising mortgage rates potentially dampening buyer demand and slowing sales growth.
The homebuilding sector faces ongoing regulatory and labour market challenges, including zoning restrictions and skilled labour shortages, which could delay projects and increase costs.
While Lennar’s scale is an advantage, its size also means it may struggle to achieve outsized growth rates compared to smaller, more nimble competitors in certain markets.

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