AIEQ1.360%
as of Jul 20
YUM
GrowthYUM! BRANDS INC
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.
Close · 3M
-11.07%
Held by 2 AI ETFs
LQAI0.160%
as of Jul 17
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals6
Win rate0% (0/6)
Avg buy return-8.86%
AIEQ · Weight decrease · 2d
AIEQ’s position in YUM showed a sustained, multi-day reduction, starting with modest decreases before accelerating slightly towards the end of the period. This pattern indicates that IBM Watson’s daily analysis, ingesting vast amounts of news and social posts, consistently ranked YUM lower as its price remained near 90% of its 52-week high despite recent negative 30 and 90-day returns. EquBot’s risk overlay likely factored in YUM’s P/B ratio of 34.95 and P/E of 25.45, signaling a potential overvaluation concern that outweighed its 9.65% revenue growth or 117.64% ROE within the fund’s sentiment and fundamental hybrid model. The daily rebalancing mechanism of this particular fund, driven by the persistent output from the NLP system, systematically adjusted YUM's weighting downward, reflecting a continuous shift in perceived risk or opportunity for the consumer discretionary stock.
weight 1.490% → 1.390% (-0.100 pp)·stock up 2.7% in the 30 days before
Jul 16·entry $152.10·now $147.37
-3.11%
since Jul 16
AIEQ · Weight decrease · 2d
The Amplify AIEQ fund, driven by IBM Watson's daily NLP analysis of thousands of US equities, appears to be responding to subtle shifts in YUM's sentiment or fundamental outlook. As a high-turnover fund that rebalances daily, AIEQ's consecutive weight decrease in YUM from 1.54% to 1.49% between July 8th and July 11th suggests Watson's sophisticated processing detected a negative signal after a period of stabilization. This adjustment could reflect the system's assessment of YUM's current valuation, with the stock trading at 97% of its 52-week high, potentially indicating limited further upside or increased risk at this level. The AI's ranking, which combines fundamentals and sentiment, likely flagged factors that EquBot's risk overlay interpreted as justification for trimming exposure within its 140-180 stock portfolio.
weight 1.540% → 1.490% (-0.050 pp)·stock up 10.5% in the 30 days before
Jul 11·entry $161.68·now $147.37
-8.85%
since Jul 11
AIEQ · Weight increase · 2d
Amplify's AIEQ, leveraging IBM Watson NLP across thousands of US equities and rebalancing daily, began accumulating YUM as its sentiment and fundamental analysis evolved. The consecutive weight increases from July 1st, where YUM went from 0% to 1.48% and then gradually up to 1.54% by July 8th, suggest that Watson's continuous ingestion of news and market signals consistently favored the Consumer Discretionary company. The AI's model likely recognized YUM's sustained operational efficiency, reflected in its 117.64% Return on Equity, or positive developments contributing to its recent 9.7% 30-day return, despite trading at 98% of its 52-week high. This sustained positive signal drove the fund to maintain its position and incrementally increase exposure within its 140-180 US stock portfolio, aligning with its high-turnover investment approach.
weight 1.520% → 1.540% (+0.020 pp)·stock up 8.7% in the 30 days before
Jul 8·entry $165.25·now $147.37Fresh
-10.82%
since Jul 8
AIEQ · Weight increase · 2d
Trading at $164.73, YUM stands at 98% of its 52-week high, showing a +9.6% return over the last 30 days following a more modest +0.9% across the prior 90 days. AIEQ's IBM Watson NLP system, which continuously processes news, filings, and social posts for sentiment and fundamental cues, identified positive signals for YUM, leading to its initial 1.4800% inclusion on July 1st from a previous zero weighting. This move by the daily-rebalancing fund was further supported by YUM's financial metrics, including 9.65% revenue growth and a 117.64% return on equity. The subsequent increase to 1.5200% on July 3rd indicates the AI continued to rank the stock favorably, prompting a further allocation within the portfolio's active management.
weight 0 → 1.520% (new)·stock up 6.7% in the 30 days before
Jul 3·entry $165.99·now $147.37Fresh
-11.22%
since Jul 3
AIEQ · New entry · 1d
YUM Brands' ROE of 117.64% and 9.65% revenue growth present strong fundamental indicators, consistent with the fundamentals-driven aspect of AIEQ's hybrid investment style. A PER of 25.33 and PBR of 34.95 offer additional valuation data considered by EquBot's daily ranking processes. This new 1.4800% allocation on July 1st, following a consistent 0.0000% holding, occurred as the stock had registered a 30-day return of +6.3% and reached $161.59, positioning it at 96% of its 52-week high. Such a move indicates IBM Watson NLP likely processed recent news, filings, or social posts that shifted sentiment or the fundamental outlook sufficiently to trigger an entry despite the near-term price run-up. AIEQ's high-turnover characteristic allows for quick adjustments, enabling the fund to capitalize on the dynamic signals identified by the AI system across YUM's vast data landscape.
weight 0 → 1.480% (new)·stock up 5.8% in the 30 days before
Jul 1·entry $161.59·now $147.37Fresh
-8.80%
since Jul 1
AIEQ · Exit · 1d
YUM! Brands, priced at $147.95, currently sits at 88% of its 52-week high, having sustained negative returns of -9.1% over the past 30 days and -4.2% over 90 days, with its one-year return nearly flat at -0.1%. This price trajectory, combined with its position near the lower end of its 52-week range, likely signaled a negative shift in the broad market sentiment or underlying fundamentals for the stock. Amplify ETFs' AIEQ, managed by IBM Watson NLP's daily ranking of thousands of US equities, interprets such shifts from news, filings, and social posts. Despite YUM reporting a PER of 23.71, PBR of 34.95, 9.65% revenue growth, and 117.64% ROE, the fund's high-turnover strategy and EquBot's risk overlay led to the complete removal of its 0.0600% position on 2026-05-30, suggesting the AI identified deteriorating sentiment or an increased risk profile.
weight 0.060% → 0 (exited)·stock down 7.4% in the 30 days before
May 30·entry $147.51·now $147.37
-0.09%
since May 30
AIEQ · New entry · 1d
The AI ETF likely re-entered YUM! Brands due to its exceptional Return on Equity of 117.64% and solid 8.8% revenue growth, signaling robust profitability and efficient capital utilization. These strong financial metrics often drive AI decisions, allowing it to overlook seemingly high valuation multiples like the PER and PBR. For retail investors, this underscores the importance of evaluating a company's fundamental financial strength and growth efficiency, as AI models prioritize these factors over solely traditional valuation ratios for high-quality businesses.
weight 0 → 0.070% (new)·stock up 3.0% in the 30 days before
May 3·entry $154.40·now $147.37Fresh
-4.55%
since May 3
LQAI · New entry · 1d
weight 0 → 0.180% (new)·stock up 8.8% in the 30 days before
Jul 7·entry $167.49·now $147.37Fresh
-12.01%
since Jul 7
QRFT · Exit · 1d
weight 0.100% → 0 (exited)·stock down 1.8% in the 30 days before
Apr 2·entry $156.09·now $147.37
-5.59%
since Apr 2
QRFT · Exit · 1d
weight 0.100% → 0 (exited)·stock down 2.9% in the 30 days before
Mar 23·entry $158.54·now $147.37
-7.05%
since Mar 23
QRFT · Exit · 1d
weight 0.100% → 0 (exited)·stock down 4.3% in the 30 days before
Mar 20·entry $156.41·now $147.37
-5.78%
since Mar 20
QRFT · New entry · 1d
weight 0 → 0.100% (new)·stock down 4.3% in the 30 days before
Mar 20·entry $156.41·now $147.37Fresh
-5.78%
since Mar 20
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Jul 12
AI ETFs AIEQ and LQAI show recent interest in YUM, with LQAI initiating a new position and AIEQ maintaining a significant holding despite some recent weight decrease trends. This activity suggests the AI ETFs see potential value or momentum, which contrasts with this framework's 'Fail' verdict due to financial health and valuation concerns.
- Circle of CompetenceYUM's global quick-service restaurant brands and franchise model provide predictable unit economics suitable for long-term cash flow projections.
- Economic MoatThe company benefits from powerful brand recognition, global scale, and a vast franchise network, forming a durable economic moat.
- ManagementThe provided data does not offer sufficient information to assess management's candor, capital allocation discipline, or skin in the game.
- Financial HealthWhile the reported ROE is very high, without a 10-year history or detailed debt metrics, the framework cannot confirm that financial leverage is manageable or that operating margins are stable, indicating potential fragility.
- Margin of SafetyThe current PER of 25.45 and EV/EBITDA of 33.72 represent high valuation multiples that offer no discernible margin of safety for a conservative investor.
This analysis identifies YUM! Brands as a business operating within the circle of competence and possessing strong brand-driven economic moats. However, significant concerns arise regarding the company's financial health, where an extremely high ROE combined with high valuation multiples implies substantial leverage that cannot be fully assessed for manageability with the given data. Furthermore, the current valuation multiples suggest the stock lacks a sufficient margin of safety at its current price, leading to an overall 'Fail' verdict.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.