Yum! Brands (NYSE:YUM) Stock Gets Price Target Increase from Citigroup

Key Points

• Citigroup raised Yum! Brands’ price target from $163 to $171, while keeping a Neutral rating; the new target implied 2.81% upside from the prior close.
• Analyst opinions remain mixed: the consensus rating is Hold, with an average price target of $172.57.
• Yum! reported quarterly EPS of $1.56, above estimates, and revenue growth of 3.8% year over year. Results were uneven across brands, including declines in U.S. Taco Bell and KFC sales.

Yum! Brands (NYSE:YUM - Get Free Report) had its price target hoisted by investment analysts at Citigroup from $163.00 to $171.00 in a report issued on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the restaurant operator's stock. Citigroup's price target would suggest a potential upside of 2.81% from the company's previous close.

A number of other equities analysts have also commented on YUM. Gordon Haskett lowered their price target on shares of Yum! Brands from $182.00 to $180.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. TD Cowen boosted their price objective on shares of Yum! Brands from $177.00 to $180.00 and gave the company a "buy" rating in a report on Tuesday. Bank of America increased their target price on shares of Yum! Brands from $191.00 to $193.00 and gave the stock a "neutral" rating in a research report on Monday, July 20th. Royal Bank Of Canada raised their target price on shares of Yum! Brands from $170.00 to $180.00 and gave the stock a "sector perform" rating in a report on Wednesday. Finally, Rothschild & Co Redburn lowered their target price on shares of Yum! Brands from $184.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday, September 30th. Fourteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $172.57.

Yum! Brands Trading Up 5.9%

YUM stock traded up $9.31 during trading hours on Wednesday, hitting $166.32. 4,008,142 shares of the stock were exchanged, compared to its average volume of 2,185,497. The firm has a market capitalization of $45.39 billion, a P/E ratio of 20.92, a P/E/G ratio of 2.42 and a beta of 0.53. The company has a 50-day simple moving average of $146.29 and a two-hundred day simple moving average of $153.48. Yum! Brands has a 12 month low of $134.26 and a 12 month high of $170.14.

Yum! Brands (NYSE:YUM - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The restaurant operator reported $1.56 earnings per share for the quarter, topping analysts' consensus estimates of $1.51 by $0.05. The company had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $2.05 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%. The company's revenue was up 3.8% on a year-over-year basis. During the same quarter last year, the firm earned $1.58 earnings per share. On average, equities research analysts predict that Yum! Brands will post 6.64 earnings per share for the current year.

Insider Transactions at Yum! Brands

In related news, COO Tracy L. Skeans sold 3,494 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $158.00, for a total transaction of $552,052.00. Following the sale, the chief operating officer owned 3 shares in the company, valued at approximately $474. This trade represents a 99.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Christopher Turner sold 285 shares of Yum! Brands stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $140.11, for a total transaction of $39,931.35. Following the completion of the transaction, the chief executive officer directly owned 63,225 shares in the company, valued at $8,858,454.75. This trade represents a 0.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 4,288 shares of company stock valued at $666,149. Company insiders own 0.14% of the company's stock.

Hedge Funds Weigh In On Yum! Brands

Several hedge funds and other institutional investors have recently modified their holdings of YUM. Harrell Investment Partners LLC grew its position in shares of Yum! Brands by 1.5% in the 2nd quarter. Harrell Investment Partners LLC now owns 4,235 shares of the restaurant operator's stock valued at $677,000 after buying an additional 62 shares during the last quarter. Elevation Wealth Partners LLC raised its position in shares of Yum! Brands by 44.6% during the second quarter. Elevation Wealth Partners LLC now owns 227 shares of the restaurant operator's stock worth $36,000 after acquiring an additional 70 shares during the last quarter. Bridgewater Advisors Inc. raised its position in shares of Yum! Brands by 3.5% during the first quarter. Bridgewater Advisors Inc. now owns 2,108 shares of the restaurant operator's stock worth $311,000 after acquiring an additional 72 shares during the last quarter. GSG Advisors LLC lifted its stake in shares of Yum! Brands by 5.4% in the first quarter. GSG Advisors LLC now owns 1,511 shares of the restaurant operator's stock worth $235,000 after acquiring an additional 77 shares during the period. Finally, Cidel Asset Management Inc. lifted its stake in shares of Yum! Brands by 5.5% in the second quarter. Cidel Asset Management Inc. now owns 1,484 shares of the restaurant operator's stock worth $237,000 after acquiring an additional 77 shares during the period. Institutional investors own 82.37% of the company's stock.

Trending Headlines about Yum! Brands

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

• Positive Sentiment: Yum! reported third-quarter adjusted EPS of $1.56, above analyst expectations, while revenue rose 3.8% year over year to $2.05 billion. KFC’s international business was a growth driver, with system sales up 9%. Yum Brands earnings beat estimates, but cyclospora outbreak weighs on Taco Bell
• Positive Sentiment: Management said Taco Bell sales improved in September and October after the food-safety outbreak, with the brand recovering faster than expected. Loyalty members returned more quickly than other customers, suggesting the program helped restore traffic. Taco Bell’s loyalty program helped the brand recover from Cyclospora outbreak
• Positive Sentiment: TD Cowen raised its price target to $180 and retained a Buy rating; Deutsche Bank also lifted its target, to $171. Deutsche Bank adjusts price target
• Neutral Sentiment: Analyst views were mixed: BTIG reaffirmed Neutral, while Zacks downgraded YUM from Hold to Strong Sell, reflecting uncertainty about the durability of sales recovery.
• Negative Sentiment: Operational results were uneven. Taco Bell U.S. same-store sales fell 4% amid the cyclospora outbreak, and KFC U.S. system sales declined 6%. Revenue also came in below some estimates, despite the EPS beat. KFC’s U.S. turnaround has a long way to go
• Negative Sentiment: Yum ended its relationship with its Puerto Rico franchise operator, temporarily closing the island’s KFC and Taco Bell restaurants while it seeks a replacement partner. KFC and Taco Bell restaurants close across Puerto Rico

Yum! Brands Company Profile

Yum! Brands, Inc is a global restaurant company that operates, franchises and licenses quick-service and fast-casual restaurants. Its principal brands are KFC, which specializes in fried and other chicken products; Taco Bell, which offers Mexican-inspired food; Pizza Hut, which sells pizzas and related menu items; and The Habit Burger Grill, a fast-casual burger restaurant chain.

The company's business is primarily franchise-based, with restaurants operated by independent franchisees and licensees alongside company-operated locations.

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