Yum! Brands (NYSE:YUM) Stock Keeps Neutral Rating at BTIG Research

Key Points

• BTIG Research reaffirmed its neutral rating on Yum! Brands. Analysts’ consensus rating is Hold, with an average price target of $171.78.
• Yum reported quarterly adjusted EPS of $1.56, beating estimates of $1.51; revenue was $2.05 billion, in line with expectations and up 3.8% year over year.
• Performance was mixed: KFC’s international sales growth helped offset weakness elsewhere, while Taco Bell’s U.S. same-store sales fell 4% amid the effects of a cyclospora outbreak.

Yum! Brands (NYSE:YUM - Get Free Report)'s stock had its "neutral" rating reaffirmed by stock analysts at BTIG Research in a research note issued on Wednesday, Benzinga reports.

Several other equities analysts also recently weighed in on the company. Royal Bank Of Canada raised their target price on Yum! Brands from $165.00 to $170.00 and gave the company a "sector perform" rating in a research report on Friday, July 31st. JPMorgan Chase & Co. dropped their price target on Yum! Brands from $160.00 to $150.00 and set an "overweight" rating for the company in a research report on Tuesday, September 29th. Zacks Research cut Yum! Brands from a "hold" rating to a "strong sell" rating in a research report on Monday. Citigroup reduced their price objective on Yum! Brands from $176.00 to $163.00 and set a "neutral" rating for the company in a research note on Wednesday, October 21st. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Yum! Brands in a report on Monday, October 26th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $171.78.

Yum! Brands Trading Down 0.5%

Shares of Yum! Brands stock opened at $156.87 on Wednesday. The firm has a market capitalization of $42.81 billion, a PE ratio of 19.73, a P/E/G ratio of 2.42 and a beta of 0.53. Yum! Brands has a twelve month low of $134.26 and a twelve month high of $170.14. The firm's 50-day moving average price is $146.29 and its 200 day moving average price is $153.48.

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

Insider Transactions at Yum! Brands

In related news, CEO Christopher Turner sold 285 shares of the company's stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $140.11, for a total value of $39,931.35. Following the completion of the sale, the chief executive officer owned 63,225 shares of the company's stock, valued at approximately $8,858,454.75. This represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Tracy Skeans sold 3,494 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $158.00, for a total transaction of $552,052.00. Following the completion of the sale, the chief operating officer directly owned 3 shares of the company's stock, valued at $474. This represents a 99.91% decrease in their position. 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. Insiders have sold a total of 4,288 shares of company stock worth $666,149 in the last quarter. Company insiders own 0.14% of the company's stock.

Hedge Funds Weigh In On Yum! Brands

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

Yum! Brands News Summary

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

• Positive Sentiment: Analyst price targets moved higher: Deutsche Bank raised its target to $171 from $167, while TD Cowen raised its target to $180 and maintained a Buy rating. Deutsche Bank price target TD Cowen rating
• Positive Sentiment: Q3 adjusted EPS of $1.56 topped analyst estimates. KFC’s international strength helped offset weakness elsewhere, with reports citing 9% international system-sales growth; Yum also reported 3% system-sales growth and 7% unit growth excluding Pizza Hut. Q3 earnings call highlights
• Positive Sentiment: Management said Taco Bell sales are improving after the summer cyclospora outbreak. September and October trends strengthened, and loyalty members returned more quickly than other customers—potentially helping the brand’s recovery. Taco Bell loyalty and recovery
• Neutral Sentiment: Yum is expanding AI use across kitchens, drive-thrus and management, and is introducing a new KFC flagship design. These initiatives could support efficiency and customer experience over time, though near-term financial effects are unclear. Yum AI strategy
• Negative Sentiment: Taco Bell’s U.S. same-store sales fell 4% in Q3 as the outbreak hurt customer traffic. Revenue was about $2.05 billion, roughly in line with some estimates but below others, tempering the earnings beat. Taco Bell Q3 sales
• Negative Sentiment: All KFC and Taco Bell locations in Puerto Rico temporarily closed after Yum ended its relationship with the local operator and seeks a new franchise partner. This disrupts sales in the market, though the scale of the financial impact was not specified. Puerto Rico restaurant closures

About Yum! Brands

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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