Yum! Brands (NYSE:YUM) Price Target Cut to $177.00 by Analysts at TD Cowen

Key Points

• TD Cowen lowered Yum! Brands’ price target from $180 to $177 while maintaining a “Buy” rating, implying approximately 26.5% upside from the referenced $139.89 share price.
• Analyst sentiment remains broadly positive, with 13 Buy ratings and eight Holds; the consensus rating is “Moderate Buy” with an average target price of $172.56.
• Yum! Brands exceeded quarterly EPS expectations and reported 12.2% year-over-year revenue growth, while its board authorized a $4 billion share-repurchase program covering up to 9.4% of outstanding shares.

Yum! Brands (NYSE:YUM - Get Free Report) had its price objective decreased by equities research analysts at TD Cowen from $180.00 to $177.00 in a report issued on Wednesday, Benzinga reports. The brokerage currently has a "buy" rating on the restaurant operator's stock. TD Cowen's price objective would suggest a potential upside of 26.53% from the stock's current price.

Other analysts have also issued research reports about the company. Argus reaffirmed a "hold" rating on shares of Yum! Brands in a research note on Thursday, September 24th. Evercore reiterated an "outperform" rating on shares of Yum! Brands in a research note on Tuesday, June 16th. Royal Bank Of Canada boosted their target price on shares of Yum! Brands from $165.00 to $170.00 and gave the company a "sector perform" rating in a research note on Friday, July 31st. JPMorgan Chase & Co. lowered their target price on shares of Yum! Brands from $160.00 to $150.00 and set an "overweight" rating on the stock in a report on Tuesday, September 29th. Finally, Robert W. Baird cut their price target on shares of Yum! Brands from $174.00 to $165.00 and set an "outperform" rating for the company in a report on Wednesday, September 16th. Thirteen equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $172.56.

Yum! Brands Stock Up 2.1%

NYSE:YUM opened at $139.89 on Wednesday. Yum! Brands has a 12-month low of $134.26 and a 12-month high of $170.14. The firm has a market capitalization of $38.18 billion, a PE ratio of 17.60, a price-to-earnings-growth ratio of 2.19 and a beta of 0.55. The firm has a 50-day moving average price of $146.37 and a 200 day moving average price of $152.17.

Yum! Brands (NYSE:YUM - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share for the quarter, beating analysts' consensus estimates of $1.58 by $0.04. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.The company had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same period in the previous year, the business earned $1.44 earnings per share. The company's quarterly revenue was up 12.2% on a year-over-year basis. On average, research analysts expect that Yum! Brands will post 6.46 EPS for the current year.

Yum! Brands announced that its Board of Directors has approved a stock repurchase program on Tuesday, June 16th that allows the company to buyback $4.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to buy up to 9.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other Yum! Brands news, CEO Christopher Lee Turner sold 261 shares of the firm's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $153.15, for a total value of $39,972.15. Following the completion of the sale, the chief executive officer owned 63,771 shares in the company, valued at approximately $9,766,528.65. This trade represents a 0.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Scott Mezvinsky sold 268 shares of the business's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $153.64, for a total transaction of $41,175.52. Following the completion of the transaction, the chief executive officer directly owned 482 shares of the company's stock, valued at approximately $74,054.48. This represents a 35.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 12,493 shares of company stock valued at $1,926,462. 0.14% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of YUM. BlackRock Inc. bought a new position in Yum! Brands in the 2nd quarter valued at $4,186,811,000. Wellington Management Group LLP raised its position in shares of Yum! Brands by 1,373.2% during the second quarter. Wellington Management Group LLP now owns 4,631,940 shares of the restaurant operator's stock worth $740,462,000 after acquiring an additional 4,317,526 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Yum! Brands during the second quarter valued at $638,589,000. Legal & General Group Plc bought a new position in Yum! Brands in the second quarter valued at about $297,591,000. Finally, Bank of New York Mellon Corp acquired a new stake in Yum! Brands in the second quarter worth about $279,432,000. Institutional investors own 82.37% of the company's stock.

Yum! Brands News Summary

Here are the key news stories impacting Yum! Brands this week:

• Positive Sentiment: Zacks Research raised its earnings forecasts, lifting estimates to $2.05 per share for Q4 2027, $6.92 for fiscal 2027 and $7.71 for fiscal 2028. The revisions suggest slightly improved expectations for Yum’s future profitability, although Zacks maintains a “Hold” rating. Zacks Research Predicts Higher Earnings for Yum! Brands
• Positive Sentiment: KFC introduced $3.49 Go Buckets, a portable snack-sized meal designed to fit in a standard car cupholder. The product could help drive incremental traffic and sales by targeting convenience and smaller eating occasions, though its financial impact is not yet known. KFC Puts a Snackable Spin on its Iconic Bucket
• Neutral Sentiment: Guggenheim retained its “Buy” rating but cut its price target from $180 to $155. The revised target still implies potential upside from the referenced $139.89 share price, but the substantial reduction indicates lower valuation expectations. Guggenheim Adjusts Yum! Brands Price Target
• Negative Sentiment: JPMorgan also lowered its price target to $150, adding to evidence that analysts see less near-term valuation upside for YUM. The target remains above the referenced market price, but the cut may weigh on investor sentiment. JPMorgan Cuts Target for Yum! Brands Stock

About Yum! Brands

Yum! Brands, Inc is a global restaurant company that develops, operates, and franchises quick-service restaurants. Its portfolio includes KFC, which specializes in fried and cooked chicken; Taco Bell, known for Mexican-inspired food; Pizza Hut, which offers pizza and related products; and The Habit Burger Grill, a fast-casual chain focused on chargrilled burgers, sandwiches, salads, and shakes.

The company primarily uses a franchised business model, working with franchisees and licensees to operate restaurants in more than 150 countries and territories.

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