Magellan Asset Management Ltd Sells 146,334 Shares of Yum! Brands, Inc. $YUM

Key Points

• Magellan Asset Management cut its Yum! Brands stake by 6.9% in the fourth quarter, selling 146,334 shares and leaving it with 1,988,118 shares worth about $300.8 million.
• Yum! Brands reported strong quarterly results, with EPS of $1.50 beating estimates and revenue of $2.06 billion topping expectations, while revenue rose 15.2% year over year.
• The company announced a quarterly dividend of $0.75 per share, payable June 12, and analysts remain broadly positive with a consensus rating of “Moderate Buy” and an average price target of $176.17.

Magellan Asset Management Ltd decreased its position in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) by 6.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,988,118 shares of the restaurant operator's stock after selling 146,334 shares during the period. Yum! Brands accounts for about 3.7% of Magellan Asset Management Ltd's investment portfolio, making the stock its 7th largest holding. Magellan Asset Management Ltd owned 0.72% of Yum! Brands worth $300,762,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Brighton Jones LLC increased its position in shares of Yum! Brands by 8.0% during the 4th quarter. Brighton Jones LLC now owns 7,861 shares of the restaurant operator's stock valued at $1,055,000 after purchasing an additional 583 shares during the period. First Trust Advisors LP boosted its stake in Yum! Brands by 124.5% during the second quarter. First Trust Advisors LP now owns 151,316 shares of the restaurant operator's stock valued at $22,422,000 after buying an additional 83,916 shares in the last quarter. CIBC Asset Management Inc boosted its stake in Yum! Brands by 10.0% during the second quarter. CIBC Asset Management Inc now owns 117,824 shares of the restaurant operator's stock valued at $17,447,000 after buying an additional 10,755 shares in the last quarter. Treasurer of the State of North Carolina boosted its stake in Yum! Brands by 1.0% during the second quarter. Treasurer of the State of North Carolina now owns 130,205 shares of the restaurant operator's stock valued at $19,294,000 after buying an additional 1,256 shares in the last quarter. Finally, HUB Investment Partners LLC boosted its stake in Yum! Brands by 59.1% during the second quarter. HUB Investment Partners LLC now owns 2,319 shares of the restaurant operator's stock valued at $344,000 after buying an additional 861 shares in the last quarter. 82.37% of the stock is owned by institutional investors.

Yum! Brands Stock Down 0.3%

NYSE:YUM opened at $148.03 on Friday. Yum! Brands, Inc. has a 1-year low of $137.33 and a 1-year high of $169.39. The firm has a market capitalization of $40.80 billion, a price-to-earnings ratio of 23.88, a price-to-earnings-growth ratio of 1.89 and a beta of 0.57. The stock has a fifty day simple moving average of $155.49 and a 200 day simple moving average of $155.63.

Yum! Brands (NYSE:YUM - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 earnings per share for the quarter, beating 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 business had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.04 billion. During the same quarter last year, the company posted $1.30 EPS. Yum! Brands's revenue for the quarter was up 15.2% on a year-over-year basis. Equities analysts predict that Yum! Brands, Inc. will post 6.77 earnings per share for the current year.

Yum! Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Wednesday, May 27th will be issued a $0.75 dividend. 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 dividend payout ratio is currently 48.39%.

Analysts Set New Price Targets

Several research analysts recently weighed in on YUM shares. Citigroup raised their target price on Yum! Brands from $174.00 to $175.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. JPMorgan Chase & Co. raised their target price on Yum! Brands from $160.00 to $170.00 and gave the company an "overweight" rating in a research note on Tuesday, February 24th. Morgan Stanley raised Yum! Brands from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $180.00 to $185.00 in a research note on Wednesday. Weiss Ratings lowered Yum! Brands from a "buy (b+)" rating to a "buy (b)" rating in a research report on Wednesday, May 6th. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $168.00 price target on shares of Yum! Brands in a research report on Monday, May 4th. Thirteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Yum! Brands has an average rating of "Moderate Buy" and a consensus price target of $176.17.

Key Stories Impacting Yum! Brands

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

• Positive Sentiment: Reports that Yum! Brands may sell Pizza Hut to LongRange Capital have fueled a “sum-of-the-parts” narrative, potentially improving valuation by letting Yum focus on its stronger brands and use proceeds to strengthen the balance sheet. Pizza Hut Sale: Yum Brands In Talks With LongRange Capital
• Positive Sentiment: Yum’s push to use AI and data science to forecast customer cravings across Taco Bell, KFC, Pizza Hut and Habit Burger & Grill highlights efforts to improve menu innovation and long-term growth. Exclusive: Inside Yum's effort to predict what customers will crave next
• Neutral Sentiment: Yum! Brands COO Tracy Skeans announced plans to retire after 25 years, but the company says she will stay on as an advisor through year-end, suggesting an orderly transition. Yum Brands COO to retire after 25 years
• Neutral Sentiment: Yum! Brands also drew attention after a strong trading session and continued analyst support following its recent earnings beat, which showed better-than-expected EPS and revenue growth. Yum! Brands Inc. stock outperforms competitors on strong trading day
• Negative Sentiment: CEO Scott Mezvinsky’s recent insider share sale under a pre-arranged trading plan may weigh slightly on sentiment, even though the transaction was routine. Yum! Brands Keeps Growing. Why the Stock Price Will Follow.

Insider Transactions at Yum! Brands

In other Yum! Brands news, CEO Scott Mezvinsky sold 261 shares of Yum! Brands stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $148.14, for a total value of $38,664.54. Following the transaction, the chief executive officer directly owned 483 shares of the company's stock, valued at $71,551.62. The trade was a 35.08% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Christopher Lee Turner sold 270 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $148.14, for a total value of $39,997.80. Following the sale, the chief executive officer owned 64,282 shares in the company, valued at approximately $9,522,735.48. This represents a 0.42% 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 5,895 shares of company stock worth $906,499 in the last ninety days. Company insiders own 0.14% of the company's stock.

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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