YUM
Yum! Brands, Inc.
Is YUM Halal?
Global QSR franchisor with pork toppings and generally non-halal-certified meat across major brands; the current debt/assets ratio also fails the examined financial limits.
What You Should Know
Yum! Brands' March 31, 2026 Form 10-Q reports $8,211 million of total assets, $11,954 million of interest-bearing debt, $689 million of cash, $828 million of net accounts and notes receivable and $2,059 million of quarterly revenue. ZakatInvest's current calculations are debt/assets 145.59%, liquidity 8.39% and receivables plus cash/assets 18.48%; the examined asset-based financial screens fail on debt. The filing does not disclose gross non-compliant investment income or a universal prohibited-menu revenue numerator. The retained qualitative concern is material: Pizza Hut menus in many markets feature pork toppings, KFC and Taco Bell products are generally not halal-certified outside designated markets, and the parent earns royalties and franchise revenue across the global system. This is a current ZakatInvest calculation, not an index-membership claim.
⚠️ Concerns
- •Debt/assets of 145.59% materially exceeds the examined FTSE, MSCI and Malaysia SAC asset-based limits
- •Pizza Hut menus in many markets feature pepperoni, bacon, sausage and ham
- •KFC chicken and Taco Bell beef or pork are generally not halal-certified outside designated markets, although local halal franchise markets exist
- •The filing does not allocate prohibited menu-category revenue or gross non-compliant investment income, so no unsupported percentage is invented
- •Yum! collects royalties, franchise and property revenue, and advertising contributions across a system that was 97% franchisee-owned at March 31, 2026
- •Strategic options for Pizza Hut, franchise mix, securitization, labor, food safety and local certification require continuing qualitative review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
11,954 / 8,211
689 / 8,211
1,517 / 8,211
- Financial
- Fails
- Overall
- Fails
Debt/assets are 145.59%, above the examined FTSE asset limit. Liquidity is 8.39% and receivables plus cash are 18.48%; gross non-compliant income and prohibited-category revenue are unavailable. The debt failure independently produces a failed financial result.
- Financial
- Fails
- Overall
- Fails
Debt/assets are 145.59%, above the examined MSCI total-assets limit; liquidity and receivables plus cash are below the examined limits. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets are 145.59%, above the examined Malaysia SAC financial limit. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed historical market-cap series is not stored. A different denominator cannot cure the independently failed debt screen or resolve the unquantified menu mix.
Business-activity disclosure
Yum! Brands is a global franchisor and operator of KFC, Taco Bell, Pizza Hut and The Habit Burger & Grill. The portfolio is a mixed restaurant activity: pork toppings and non-halal-certified meat are material menu concerns in many markets, while selected franchise markets offer halal-certified menus. Public reporting does not quantify prohibited menu-category revenue across the system, so a precise activity percentage cannot be published.
Limitation: The filing reports revenue by concept and geography and states that 97% of restaurants were franchisee-owned, but it does not split royalties, franchise contributions or company sales by protein, preparation, alcohol or halal certification. The qualitative concern is retained without converting system sales into an unsupported prohibited-revenue numerator.
Purification
Gross non-compliant investment income and prohibited menu-category revenue are not separately disclosed, and no scholar-approved fixed purification percentage is asserted. Investors should follow the qualified guidance applicable to their chosen methodology.
Inputs, assumptions and primary sources
- Inputs use Yum! Brands' March 31, 2026 Form 10-Q; amounts are USD millions, and revenue is for the three-month period.
- Interest-bearing debt uses $1,741 million of short-term borrowings plus $10,213 million of long-term debt as presented on the balance sheet. The carrying values include current maturities, notes, facilities, securitization notes and finance leases; operating lease liabilities are not silently added.
- Cash uses $689 million of cash and cash equivalents. No separate interest-bearing securities balance is entered because the filing does not present a current investment balance by category; restricted cash is excluded.
- Receivables use $828 million of net accounts and notes receivable. Total revenue is $2,059 million for the quarter.
- The filing reports investment income/expense net of zero and interest expense, net of $128 million, but does not disclose a gross non-compliant-income numerator. The income screen is therefore unavailable rather than estimated from interest expense.
- Yum! reports concept and geography revenue but does not allocate pork, non-halal meat, alcohol or other prohibited-category revenue into a universal numerator. No unsupported prohibited-revenue percentage is used.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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