AustralianSuper Pty Ltd Purchases New Position in Yum! Brands, Inc. $YUM

Key Points

• AustralianSuper Pty Ltd opened a new position in Yum! Brands during the fourth quarter, buying 8,353 shares valued at about $1.26 million.
• Yum! Brands reported better-than-expected quarterly results, with EPS of $1.50 beating estimates and revenue rising 15.2% year over year to $2.06 billion.
• The company also declared a $0.75 quarterly dividend, and analysts remain broadly positive with a consensus rating of Moderate Buy and an average price target of $176.22.

AustralianSuper Pty Ltd purchased a new stake in Yum! Brands, Inc. (NYSE:YUM - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 8,353 shares of the restaurant operator's stock, valued at approximately $1,264,000.

Several other large investors have also made changes to their positions in YUM. Wiser Advisor Group LLC bought a new stake in shares of Yum! Brands in the 3rd quarter valued at approximately $28,000. Community Bank N.A. bought a new stake in shares of Yum! Brands in the 3rd quarter valued at approximately $29,000. Westside Investment Management Inc. grew its stake in shares of Yum! Brands by 81.7% in the 3rd quarter. Westside Investment Management Inc. now owns 198 shares of the restaurant operator's stock valued at $30,000 after buying an additional 89 shares in the last quarter. CNB Bank grew its stake in shares of Yum! Brands by 833.3% in the 3rd quarter. CNB Bank now owns 224 shares of the restaurant operator's stock valued at $34,000 after buying an additional 200 shares in the last quarter. Finally, Kohmann Bosshard Financial Services LLC bought a new stake in Yum! Brands during the fourth quarter worth approximately $36,000. 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 multiple earnings estimates for Yum! Brands, including FY2026, FY2027, and FY2028, signaling improved profit expectations and a potentially stronger forward outlook for the restaurant operator.
• Positive Sentiment: The company declared a quarterly dividend of $0.75 per share, reinforcing its capital-return profile and offering income support for shareholders.
• Positive Sentiment: Yum! Brands’ India franchisee reported stronger operating trends, including a narrower loss and higher profit in FY24, which may suggest solid underlying demand for KFC and related brands in key international markets. Article: Yum Brands' India franchisee posts narrower loss on KFC sales upswing
• Neutral Sentiment: RestaurantBusiness Online highlighted leadership lessons and brand-building at Yum! Brands, but the piece appears more informational than market-moving. Article: Operator Spotlight – Building Brands Over Time: Leadership Lessons from Yum! Brands
• Neutral Sentiment: MarketWatch noted that Yum! Brands stock underperformed peers, which suggests some near-term relative weakness but does not by itself indicate a major fundamental shift. Article: Yum! Brands Inc. stock underperforms Wednesday when compared to competitors
• Negative Sentiment: COO Tracy L. Skeans sold 1,837 shares in a pre-arranged 10b5-1 transaction, a disclosure that can create a modest headwind for sentiment even though it was not a discretionary sale.
• Negative Sentiment: The pizza restaurant sector has been facing cost and demand pressure, highlighted by another chain’s Chapter 11 filing; while not specific to Yum!, it underscores broader industry caution for restaurant investors.

Yum! Brands Stock Down 0.3%

Shares of YUM stock opened at $150.25 on Friday. Yum! Brands, Inc. has a 12 month low of $137.33 and a 12 month high of $169.39. The firm has a market cap of $41.41 billion, a PE ratio of 24.23, a price-to-earnings-growth ratio of 1.92 and a beta of 0.61. The stock has a 50 day moving average of $157.70 and a 200-day moving average of $155.00.

Yum! Brands (NYSE:YUM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 EPS for the quarter, topping analysts' consensus estimates of $1.39 by $0.11. Yum! Brands had a negative return on equity of 23.51% and a net margin of 20.48%.The company had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.04 billion. During the same period in the previous year, the company earned $1.30 earnings per share. The company's quarterly revenue was up 15.2% compared to the same quarter last year. As a group, equities analysts predict that Yum! Brands, Inc. will post 6.77 EPS for the current fiscal year.

Yum! Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Wednesday, May 27th will be issued a dividend of $0.75 per share. The ex-dividend date is Wednesday, May 27th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.0%. Yum! Brands's payout ratio is 48.39%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on YUM shares. Guggenheim reaffirmed a "buy" rating and set a $180.00 target price on shares of Yum! Brands in a research report on Thursday, February 12th. Morgan Stanley set a $180.00 target price on Yum! Brands in a research report on Friday, May 1st. BMO Capital Markets reaffirmed a "market perform" rating and set a $168.00 target price on shares of Yum! Brands in a research report on Monday, May 4th. Deutsche Bank Aktiengesellschaft set a $177.00 target price on Yum! Brands in a research report on Thursday, April 30th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $165.00 target price on shares of Yum! Brands in a research report on Monday, April 20th. Twelve equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, Yum! Brands currently has an average rating of "Moderate Buy" and a consensus price target of $176.22.

Insider Transactions at Yum! Brands

In other news, COO Tracy L. Skeans sold 1,837 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $152.00, for a total transaction of $279,224.00. Following the completion of the transaction, the chief operating officer directly owned 3,497 shares in the company, valued at $531,544. The trade was a 34.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Christopher Lee Turner sold 250 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $160.48, for a total value of $40,120.00. Following the transaction, the chief executive officer owned 64,552 shares of the company's stock, valued at approximately $10,359,304.96. This trade represents a 0.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 2,890 shares of company stock worth $451,123 over the last three months. 0.14% of the stock is currently owned by insiders.

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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