Yum! Brands, Inc. (NYSE:YUM) to Issue Quarterly Dividend of $0.75

Key Points

• Yum! Brands declared a quarterly dividend of $0.75 per share, payable September 18 to shareholders of record on September 9. The payment represents a $3.00 annualized dividend and an approximately 1.9% yield.
• The dividend appears well covered, with a 44.6% payout ratio, and the company has raised it for eight consecutive years. Analysts expect a future payout ratio of about 42.7% based on projected earnings.
• Yum! Brands shares rose 2.2% to $154.08 in Friday trading. In its latest quarter, the company reported EPS of $1.62, exceeding estimates, while revenue increased 12.2% year over year to $2.17 billion.

Yum! Brands, Inc. (NYSE:YUM - Get Free Report) announced a quarterly dividend on Friday, August 28th. Shareholders of record on Wednesday, September 9th will be paid a dividend of 0.75 per share by the restaurant operator on Friday, September 18th. This represents a c) annualized dividend and a yield of 1.9%. The ex-dividend date is Wednesday, September 9th.

Yum! Brands has increased its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 8 consecutive years. Yum! Brands has a payout ratio of 44.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Yum! Brands to earn $7.03 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 42.7%.

Yum! Brands Trading Up 2.2%

Shares of NYSE YUM traded up $3.33 during mid-day trading on Friday, hitting $154.08. The company had a trading volume of 1,539,984 shares, compared to its average volume of 2,139,262. The firm has a 50-day simple moving average of $153.44 and a two-hundred day simple moving average of $155.82. The company has a market capitalization of $42.05 billion, a PE ratio of 19.38, a price-to-earnings-growth ratio of 2.51 and a beta of 0.55. Yum! Brands has a one year low of $137.33 and a one year high of $170.14.

Yum! Brands (NYSE:YUM - Get Free Report) last released its earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.58 by $0.04. The business had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.18 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.Yum! Brands's revenue was up 12.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.44 earnings per share. Sell-side analysts expect that Yum! Brands will post 6.42 earnings per share for the current fiscal year.

About Yum! Brands

Yum! Brands, Inc NYSE: YUM is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company's principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company's operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.

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