B. Metzler seel. Sohn & Co. AG Acquires Shares of 23,483 Yum! Brands, Inc. $YUM

Key Points

• B. Metzler seel. Sohn & Co. AG initiated a Yum! Brands position by purchasing 23,483 shares valued at approximately $3.75 million. Institutional investors collectively own 82.37% of the company.
• Yum! Brands reported quarterly EPS of $1.62, exceeding the $1.58 consensus estimate, while revenue rose 12.2% year over year to $2.17 billion. The company also authorized a $4 billion share-repurchase program, covering up to 9.4% of outstanding shares.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $174.65, compared with a recent share price of $153.31. Recent insider sales, a CEO transition, and an investor-law-firm investigation add uncertainty despite the company’s growth initiatives.

B. Metzler seel. Sohn & Co. AG purchased a new position in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm purchased 23,483 shares of the restaurant operator's stock, valued at approximately $3,754,000.

Other institutional investors have also made changes to their positions in the company. BlackRock Inc. bought a new stake in Yum! Brands in the second quarter valued at $4,186,811,000. Capital International Investors raised its stake in Yum! Brands by 20.0% during the 4th quarter. Capital International Investors now owns 19,419,826 shares of the restaurant operator's stock worth $2,938,139,000 after buying an additional 3,240,190 shares during the period. State Street Corp increased its holdings in Yum! Brands by 1.0% during the 4th quarter. State Street Corp now owns 13,164,814 shares of the restaurant operator's stock worth $1,991,573,000 after purchasing an additional 124,720 shares in the last quarter. Geode Capital Management LLC lifted its position in Yum! Brands by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 8,800,382 shares of the restaurant operator's stock worth $1,334,427,000 after buying an additional 121,304 shares in the last quarter. Finally, Norges Bank acquired a new stake in Yum! Brands in the 4th quarter valued at about $706,799,000. 82.37% of the stock is currently owned by institutional investors.

Yum! Brands Price Performance

YUM opened at $153.31 on Friday. The stock has a market cap of $41.84 billion, a P/E ratio of 19.28, a P/E/G ratio of 2.47 and a beta of 0.55. Yum! Brands, Inc. has a 1 year low of $137.33 and a 1 year high of $170.14. The firm has a fifty day moving average price of $153.43 and a 200 day moving average price of $155.98.

Yum! Brands (NYSE:YUM - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, beating 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%.The company's quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.44 EPS. Equities analysts expect that Yum! Brands, Inc. will post 6.42 EPS for the current year.

Yum! Brands declared that its Board of Directors has approved a share repurchase plan on Tuesday, June 16th that allows the company to buyback $4.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to purchase up to 9.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its shares are undervalued.

More Yum! Brands News

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

• Positive Sentiment: Yum! Brands outlined a renewed consumer-growth strategy centered on strengthening brand engagement, digital capabilities, loyalty programs and operational execution across KFC, Taco Bell and Pizza Hut. The emphasis on personalized customer experiences and technology could support sales and franchisee performance. Yum! Brands Reveals New Path for Consumer Growth
• Positive Sentiment: The company appointed former HanesBrands CEO Steve Bratspies to its board, effective August 26. His experience managing global consumer brands and improving operations may add expertise as Yum! pursues growth and evaluates its portfolio. Yum! Brands Appoints Steve Bratspies to Board
• Neutral Sentiment: Pizza Hut is using a football-themed branding promotion ahead of the NFL season. The marketing effort could increase near-term visibility, but it comes as Yum! advances the multibillion-dollar sale of the chain, making the strategic implications more important than the promotion itself. Pizza Hut Branding Change
• Negative Sentiment: Shares faced pressure after Yum! announced a new chief executive officer. Although a leadership change could bring fresh momentum, investors may be concerned about execution risk and the direction of the company during the transition. Yum! Brands Slides on Naming New CEO
• Negative Sentiment: An insider reportedly reduced a Yum! Brands equity stake by 28%, while executive share withholding related to restricted-stock-unit vesting was also disclosed. These transactions are not necessarily signals of deteriorating fundamentals, but they can weigh on sentiment. Yum! Brands Insider Sale
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! investors. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty to the stock. Pomerantz Investor Investigation

Insider Transactions at Yum! Brands

In related news, CEO Christopher Lee Turner sold 261 shares of the firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $153.15, for a total transaction of $39,972.15. Following the sale, the chief executive officer directly 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 sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Eric Russell sold 7,961 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $153.15, for a total value of $1,219,227.15. Following the sale, the vice president owned 11,960 shares of the company's stock, valued at approximately $1,831,674. This trade represents a 39.96% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,549 shares of company stock worth $2,890,168 in the last quarter. Insiders own 0.14% of the company's stock.

Analyst Upgrades and Downgrades

YUM has been the topic of several research analyst reports. Wells Fargo & Company raised their price objective on Yum! Brands from $160.00 to $165.00 and gave the company an "equal weight" rating in a research note on Thursday, April 30th. Argus reduced their price target on Yum! Brands from $185.00 to $180.00 and set a "buy" rating for the company in a research report on Monday, August 17th. BMO Capital Markets reissued a "market perform" rating and set a $168.00 price target on shares of Yum! Brands in a research note on Monday, May 4th. Royal Bank Of Canada increased their price target on shares of Yum! Brands from $165.00 to $170.00 and gave the stock a "sector perform" rating in a research note on Friday, July 31st. Finally, UBS Group reaffirmed a "buy" rating on shares of Yum! Brands in a report on Thursday, June 18th. Twelve research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $174.65.

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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