Empowered Funds LLC Makes New $8.35 Million Investment in Yum! Brands, Inc. $YUM

Key Points

• Empowered Funds LLC acquired 52,239 Yum! Brands shares in the second quarter, valued at approximately $8.35 million. Institutional investors collectively own 82.37% of the company.
• Yum! Brands reported quarterly EPS of $1.62, exceeding estimates of $1.58, while revenue rose 12.2% year over year to $2.17 billion. The company also authorized a $4 billion share-repurchase program and declared a quarterly dividend of $0.75 per share.
• YUM shares opened at $154.08, compared with a consensus analyst price target of $174.65 and a “Moderate Buy” rating. Meanwhile, insiders have sold 19,043 shares worth approximately $2.98 million over the past 90 days.

Empowered Funds LLC acquired a new stake in Yum! Brands, Inc. (NYSE:YUM - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 52,239 shares of the restaurant operator's stock, valued at approximately $8,351,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Yum! Brands during the second quarter valued at $4,186,811,000. Norges Bank bought a new position in Yum! Brands in the fourth quarter worth about $706,799,000. Bank of America Corp DE acquired a new position in Yum! Brands in the second quarter valued at approximately $638,589,000. Capital International Investors grew its holdings in shares of Yum! Brands by 20.0% during the fourth quarter. Capital International Investors now owns 19,419,826 shares of the restaurant operator's stock valued at $2,938,139,000 after purchasing an additional 3,240,190 shares during the last quarter. Finally, Legal & General Group Plc acquired a new stake in shares of Yum! Brands during the 2nd quarter worth approximately $297,591,000. Institutional investors and hedge funds own 82.37% of the company's stock.

Insiders Place Their Bets

In related news, CEO Scott Mezvinsky sold 277 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total value of $44,436.34. Following the completion of the transaction, the chief executive officer owned 483 shares of the company's stock, valued at approximately $77,482.86. This trade represents a 36.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aaron Powell sold 6,001 shares of Yum! Brands stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $160.42, for a total transaction of $962,680.42. Following the transaction, the chief executive officer owned 12,003 shares in the company, valued at approximately $1,925,521.26. The trade was a 33.33% 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. Over the last ninety days, insiders sold 19,043 shares of company stock worth $2,978,180. Corporate insiders own 0.14% of the company's stock.

Yum! Brands Stock Performance

Shares of YUM opened at $154.08 on Friday. The firm has a market capitalization of $42.05 billion, a price-to-earnings ratio of 19.38, a price-to-earnings-growth ratio of 2.50 and a beta of 0.55. The stock's fifty day moving average is $153.48 and its 200-day moving average is $155.81. Yum! Brands, Inc. has a one year low of $137.33 and a one year high of $170.14.

Yum! Brands (NYSE:YUM - Get Free Report) last issued its quarterly 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. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The firm had revenue of $2.17 billion for the quarter, compared to analysts' expectations of $2.18 billion. During the same period in the previous year, the business earned $1.44 earnings per share. Yum! Brands's revenue for the quarter was up 12.2% compared to the same quarter last year. Analysts forecast that Yum! Brands, Inc. will post 6.42 EPS for the current fiscal year.

Yum! Brands declared that its Board of Directors has authorized 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 buy up to 9.4% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its stock is undervalued.

Yum! Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Wednesday, September 9th will be given a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Wednesday, September 9th. Yum! Brands's dividend payout ratio is 37.74%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on YUM shares. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $174.00 price objective on shares of Yum! Brands in a research note on Friday, July 31st. BMO Capital Markets reissued a "market perform" rating and set a $168.00 price target on shares of Yum! Brands in a report on Monday, May 4th. Weiss Ratings lowered shares of Yum! Brands from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 28th. Zacks Research cut shares of Yum! Brands from a "hold" rating to a "strong sell" rating in a report on Monday, August 24th. Finally, Robert W. Baird upgraded shares of Yum! Brands to a "strong-buy" rating in a research report on Monday, August 24th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Yum! Brands 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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