YUM · 10-Q · 2026Q3 · Full report
Liquidity and Debt Position
YUM BRANDS INC · 2026-11-06 · Importance 56 · Surprise 24 · No source text
As of September 30, 2026, YUM had $11.5 billion of total debt outstanding, excluding the Revolving Facility balance, finance leases, and debt issuance costs and discounts; approximately 97% was fixed-rate, at an effective overall interest rate of approximately 4.5%. The company reported credit ratings of BB+ from Standard & Poor’s and Ba2 from Moody’s and targeted medium-term net leverage of approximately 4.0x EBITDA. The $750 million of Subsidiary Senior Unsecured Notes due June 1, 2027 could cause the Term Loan A Facility and Revolving Facility to mature in less than 12 months unless at least $500 million of those notes is paid or refinanced by 91 days before that maturity. YUM expected to refinance the $750 million of notes before that deadline, and therefore reflected an April 26, 2029 anticipated repayment date for the Term Loan A Facility and Revolving Facility in its maturity table.
Key facts
- YUM entered into an uncommenced operating lease with approximately $165 million of estimated future nominal payments for relocation of Taco Bell and Habit Burger & Grill headquarters. source
- YUM's annual operating cash flows exceeded $2.0 billion in 2025, and it expects continued strong operating cash flows in 2026. source
- YUM's net cash provided by operating activities was $1,398 million in 2026 versus $1,393 million in 2025. source
- YUM's short-term borrowings were $2.141 billion and long-term debt was $9.459 billion as of September 30, 2026. source
- YUM had $750 million of Subsidiary Senior Unsecured Notes outstanding at September 30, 2026. source
- YUM received approximately $2.4 billion in net proceeds from the Pizza Hut sales during the quarter ended September 30, 2026. source
- YUM used $675 million of the Pizza Hut proceeds to pay down Revolving Facility drawings during the quarter ended September 30, 2026. source
- YUM had $2.1 billion of cash on hand at September 30, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | +26.9% | YUM's net cash provided by investing activities was $2,155 million in 2026, compared with $208 million of net cash used in investing… |
| cash | negative | realized | -15.5% | YUM's net cash used in financing activities was $2,180 million in 2026 versus $822 million in 2025. |
| liability | positive | realized | +7.7% | YUM used $675 million of the Pizza Hut proceeds to pay down Revolving Facility drawings during the quarter ended September 30, 2026. |
| cash | positive | realized | +0.1% | YUM's net cash provided by operating activities was $1,398 million in 2026 versus $1,393 million in 2025. |
| liability | negative | realized | — | YUM had $750 million of Subsidiary Senior Unsecured Notes outstanding at September 30, 2026. |