Bank of America Corp DE Has $590.96 Million Stock Position in Yum! Brands, Inc. $YUM

Key Points

• Bank of America increased its Yum! Brands stake by 0.4% to 3.8 million shares valued at approximately $591 million. Institutional investors collectively own 82.37% of the company.
• Yum! Brands reported strong quarterly results, with adjusted EPS of $1.62, revenue up 12.2% year over year to $2.17 billion, and net income rising 128% to $853 million.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $174.94. The company also authorized a $4 billion share buyback and pays a quarterly dividend of $0.75 per share.

Bank of America Corp DE raised its holdings in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) by 0.4% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 3,800,842 shares of the restaurant operator's stock after acquiring an additional 15,715 shares during the quarter. Bank of America Corp DE owned approximately 1.38% of Yum! Brands worth $590,955,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Steph & Co. lifted its position in Yum! Brands by 107.5% during the 1st quarter. Steph & Co. now owns 166 shares of the restaurant operator's stock worth $26,000 after buying an additional 86 shares in the last quarter. MV Capital Management Inc. bought a new position in shares of Yum! Brands in the 4th quarter valued at about $28,000. Manning & Napier Advisors LLC bought a new position in shares of Yum! Brands in the 1st quarter valued at about $28,000. Wiser Advisor Group LLC acquired a new stake in shares of Yum! Brands in the third quarter valued at about $28,000. Finally, State of Wyoming acquired a new stake in shares of Yum! Brands in the first quarter valued at about $30,000. 82.37% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, CEO Scott Mezvinsky sold 277 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total transaction of $44,436.34. Following the completion of the sale, the chief executive officer owned 483 shares in the company, valued at approximately $77,482.86. This trade represents a 36.45% decrease in their position. The transaction 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, CEO Sean Tresvant sold 3,000 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $154.68, for a total transaction of $464,040.00. Following the sale, the chief executive officer owned 3,140 shares of the company's stock, valued at approximately $485,695.20. This represents a 48.86% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 11,896 shares of company stock valued at $1,869,148. 0.14% of the stock is owned by company insiders.

Analyst Ratings Changes

Several brokerages recently commented on YUM. Morgan Stanley raised Yum! Brands from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $180.00 to $185.00 in a research report on Wednesday, June 3rd. BMO Capital Markets reaffirmed a "market perform" rating and set a $168.00 price target on shares of Yum! Brands in a research report on Monday, May 4th. TD Cowen reiterated a "buy" rating and set a $180.00 price objective on shares of Yum! Brands in a research note on Tuesday, June 16th. UBS Group reissued a "buy" rating on shares of Yum! Brands in a report on Thursday, June 18th. Finally, Evercore reissued an "outperform" rating on shares of Yum! Brands in a research note on Tuesday, June 16th. Eleven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $174.94.

Yum! Brands News Roundup

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

• Positive Sentiment: Second-quarter earnings exceeded expectations. Adjusted EPS was $1.62, above the $1.58–$1.59 analyst consensus, while revenue increased 12.2% year over year to $2.17 billion. Net income surged 128% to $853 million, supported by higher sales, strong Taco Bell performance and improved restaurant-level margins. Yum! Brands Reports Second-Quarter Results
• Positive Sentiment: Pizza Hut’s planned $2.7 billion sale could sharpen Yum’s focus. Management is exiting the weaker-performing Pizza Hut business and intends to concentrate capital and resources on KFC, Taco Bell and its other growth brands. Yum also outlined a KFC transformation strategy spanning its 20 largest markets through the end of 2027. Yum outlines Pizza Hut sale for $2.7B
• Positive Sentiment: Loyalty and digital initiatives remain growth drivers. Taco Bell and KFC are expanding rewards programs and using targeted promotions to increase customer frequency, while brand innovation and global restaurant expansion support longer-term sales growth. Yum Brands doubles down on loyalty

Yum! Brands Stock Down 2.4%

NYSE:YUM opened at $153.21 on Friday. Yum! Brands, Inc. has a 12-month low of $137.33 and a 12-month high of $170.14. The firm has a market capitalization of $42.23 billion, a price-to-earnings ratio of 19.27, a P/E/G ratio of 1.93 and a beta of 0.56. The stock's 50 day moving average price is $153.94 and its two-hundred day moving average price is $156.71.

Yum! Brands (NYSE:YUM - Get Free Report) last issued its earnings results on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, topping the consensus estimate of $1.58 by $0.04. The company had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.18 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.The firm's revenue for the quarter was up 12.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.44 EPS. Equities research analysts expect that Yum! Brands, Inc. will post 6.66 EPS for the current year.

Yum! Brands announced that its Board of Directors has initiated a stock buyback program on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 9.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

Yum! Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Wednesday, May 27th were given a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend was Wednesday, May 27th. Yum! Brands's payout ratio is 48.39%.

Yum! Brands Profile

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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