Bank of America Corp DE Takes Position in Yum! Brands, Inc. $YUM

Key Points

• Bank of America acquired 3.99 million Yum! Brands shares during the second quarter, valued at approximately $638.6 million and representing about 1.46% of the company. Institutional investors collectively own 82.37% of Yum!’s outstanding stock.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $175.24, despite recent target reductions and shares trading near $140.90.
• Yum! Brands reported quarterly EPS of $1.62, topping estimates, and approved a $4 billion share-repurchase plan. The company also declared a quarterly dividend of $0.75 per share, equal to a 2.1% annualized yield.

Bank of America Corp DE acquired a new stake in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 3,994,679 shares of the restaurant operator's stock, valued at approximately $638,589,000. Bank of America Corp DE owned about 1.46% of Yum! Brands as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in Yum! Brands in the 2nd quarter valued at $4,186,811,000. Capital International Investors raised its stake in Yum! Brands by 20.0% during the fourth quarter. Capital International Investors now owns 19,419,826 shares of the restaurant operator's stock worth $2,938,139,000 after purchasing an additional 3,240,190 shares during the period. Geode Capital Management LLC grew its stake in shares of 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 valued at $1,334,427,000 after buying an additional 121,304 shares during the period. Norges Bank acquired a new stake in shares of Yum! Brands during the 4th quarter worth $706,799,000. Finally, Cantillon Capital Management LLC raised its position in shares of Yum! Brands by 0.8% in the 4th quarter. Cantillon Capital Management LLC now owns 2,055,883 shares of the restaurant operator's stock worth $311,014,000 after buying an additional 15,649 shares during the period. Institutional investors and hedge funds own 82.37% of the company's stock.

Insider Transactions at Yum! Brands

In related news, CEO Aaron Powell sold 6,001 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total transaction of $962,680.42. Following the sale, the chief executive officer owned 12,003 shares in the company, valued at $1,925,521.26. This represents a 33.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Tracy Skeans sold 3,494 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $158.00, for a total value of $552,052.00. Following the completion of the sale, the chief operating officer directly owned 3 shares in the company, valued at approximately $474. This trade represents a 99.91% decrease in their position. 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 18,780 shares of company stock valued at $2,940,693 over the last 90 days. Corporate insiders own 0.14% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. JPMorgan Chase & Co. dropped their price target on Yum! Brands from $170.00 to $160.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Robert W. Baird upgraded shares of Yum! Brands to a "strong-buy" rating in a report on Monday, August 24th. TD Cowen reaffirmed a "buy" rating and set a $180.00 price target on shares of Yum! Brands in a research report on Tuesday, June 16th. Seaport Research Partners began coverage on shares of Yum! Brands in a research note on Wednesday. They set a "buy" rating and a $162.00 price objective for the company. Finally, Argus dropped their price objective on shares of Yum! Brands from $185.00 to $180.00 and set a "buy" rating for the company in a research report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $175.24.

Trending Headlines about Yum! Brands

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

• Positive Sentiment: Analysts maintain an overall “Moderate Buy” recommendation, suggesting that Wall Street sees potential upside despite the recent share-price weakness. Yum! Brands Receives Average Recommendation of Moderate Buy
• Positive Sentiment: After selling Pizza Hut, Yum! is concentrating on Taco Bell, KFC and Habit Burger & Grill. The planned move of Taco Bell and Habit Burger to a larger shared headquarters, along with stronger supplier relationships and possible acquisitions, could support expansion and improve the company’s long-term growth platform. Yum’s Post-Pizza Hut Brand Shuffle
• Positive Sentiment: Management has indicated that it is prepared to make “bold moves,” raising the possibility that Yum! could acquire another restaurant brand to replace Pizza Hut and broaden its portfolio. However, no transaction has been announced. Yum! Brands Is Eyeing a New Purchase
• Neutral Sentiment: Yum! Brands underperformed its restaurant-industry competitors in the latest session, adding to investor concerns about its near-term momentum. The report provides performance context but does not identify a new company-specific negative development. Yum! Brands Stock Underperforms Competitors
• Negative Sentiment: The latest market coverage notes another dip in Yum! Brands stock, reflecting ongoing selling pressure. Shares have fallen about 9.8% over the past six months while the broader market advanced, making the company’s weaker relative performance a likely reason for cautious investor sentiment. Yum! Brands Stock Heads Into the Open After a Dip

Yum! Brands Stock Down 3.7%

NYSE YUM opened at $140.90 on Wednesday. Yum! Brands, Inc. has a fifty-two week low of $137.33 and a fifty-two week high of $170.14. The business has a 50 day moving average price of $150.97 and a two-hundred day moving average price of $154.58. The stock has a market cap of $38.45 billion, a PE ratio of 17.72, a P/E/G ratio of 2.32 and a beta of 0.55.

Yum! Brands (NYSE:YUM - Get Free Report) last posted its earnings results on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, topping analysts' consensus estimates of $1.58 by $0.04. The business had revenue of $2.17 billion for the quarter, compared to analysts' expectations of $2.18 billion. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The business'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 earnings per share. Sell-side analysts anticipate that Yum! Brands, Inc. will post 6.51 EPS for the current fiscal 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.

Yum! Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Wednesday, September 9th will be issued a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, September 9th. Yum! Brands's dividend payout ratio (DPR) is currently 37.74%.

About Yum! Brands

Yum! Brands, Inc is a global restaurant company that develops, operates and franchises quick-service restaurants. Its portfolio includes KFC, Taco Bell, Pizza Hut and The Habit Burger Grill, which offer products such as fried and grilled chicken, tacos and other Mexican-inspired foods, pizza, burgers and related menu items.

The company's restaurants serve customers through a combination of company-operated locations and franchised and licensed outlets. Yum! Brands supports its restaurant concepts with brand management, franchise services, technology and digital ordering capabilities, while franchisees generally manage day-to-day restaurant operations.

Yum! Brands serves customers in numerous markets worldwide, with a significant presence in the United States and international markets across regions including Asia, Europe, Latin America, the Middle East and Africa.

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