Is YUM BRANDS INC (YUM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 29.7% / 30% | 1.6% / 30% | 2.1% / 30% | 0.6% / 5% | ✓ HALAL |
| DJIM | 29.7% / 33% | 1.6% / 33% | 2.1% / 33% | 0.6% / 5% | ✓ HALAL |
| MSCI | 160.9% / 33% | 8.6% / 33% | 11.7% / 33% | 0.6% / 5% | ✗ NOT HALAL |
| S&P | 29.7% / 33% | 1.6% / 33% | 2.1% / 33% | 0.6% / 5% | ✓ HALAL |
| FTSE | 160.9% / 33% | 8.6% / 33% | 11.7% / 50% | 0.6% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 46.2% | |
| Operating Margin | 31.9% | |
| Net Margin | 19.0% | |
| Return on Assets (ROA) | 22.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.0B |
| Free Cash Flow | $1.6B |
| Total Debt | $13.2B |
| Current Ratio | 1.3 |
| Total Assets | $8.2B |
Price & Trading
| Last Close | $156.14 |
| 50-Day MA | $159.37 |
| 200-Day MA | $150.60 |
| Avg Volume | 2.0M |
| Beta | 0.6 |
|
52-Week Range
$137.33
| |
About YUM BRANDS INC (YUM)
Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally. The company operates in four segments: KFC Division, Taco Bell Division, Pizza Hut Division, and Habit Burger & Grill Division. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill brands, which specialize in chicken, Mexican-style food and pizza categories, made-to-order chargrilled burgers, sandwiches, and other products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.
Purification Calculator
As a halal stock with 0.60% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is YUM BRANDS INC (YUM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), YUM BRANDS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is YUM BRANDS INC's debt ratio?
YUM BRANDS INC's debt ratio is 29.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 160.9%.
Does YUM BRANDS INC require dividend purification?
Yes, YUM BRANDS INC has an impermissible income ratio of 0.60%, which means 0.60% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are YUM BRANDS INC's key financial metrics?
YUM BRANDS INC has a market capitalization of $42.7B, trailing P/E ratio of 27.8, and revenue of $8.2B. The company maintains a gross margin of 46.2% and a net margin of 19.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.