Man Group plc Purchases New Shares in Yum! Brands, Inc. $YUM

Key Points

• Man Group plc acquired 136,950 Yum! Brands shares worth approximately $21.9 million in the second quarter, giving it a 0.05% stake. Institutional investors collectively own 82.37% of the company.
• Yum! Brands reported quarterly earnings of $1.62 per share, exceeding estimates of $1.58, while revenue rose 12.2% year over year to $2.17 billion. The board also approved a $4 billion share-buyback program.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $174.65, although ratings range from “Strong Buy” to “Strong Sell.” Company insiders sold 19,043 shares worth nearly $3 million over the past quarter.

Man Group plc acquired a new stake in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 136,950 shares of the restaurant operator's stock, valued at approximately $21,893,000. Man Group plc owned 0.05% of Yum! Brands at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the stock. Harrell Investment Partners LLC lifted its position in shares of Yum! Brands by 1.5% in the 2nd quarter. Harrell Investment Partners LLC now owns 4,235 shares of the restaurant operator's stock worth $677,000 after purchasing an additional 62 shares during the period. Econ Financial Services Corp increased its position in shares of Yum! Brands by 0.4% during the first quarter. Econ Financial Services Corp now owns 15,536 shares of the restaurant operator's stock valued at $2,416,000 after buying an additional 63 shares during the period. Magnolia Capital Advisors LLC raised its stake in Yum! Brands by 2.0% in the fourth quarter. Magnolia Capital Advisors LLC now owns 3,292 shares of the restaurant operator's stock worth $498,000 after buying an additional 63 shares in the last quarter. Essex Financial Services Inc. raised its stake in Yum! Brands by 1.0% in the fourth quarter. Essex Financial Services Inc. now owns 6,667 shares of the restaurant operator's stock worth $1,009,000 after buying an additional 66 shares in the last quarter. Finally, Hilltop Holdings Inc. lifted its holdings in Yum! Brands by 2.8% in the fourth quarter. Hilltop Holdings Inc. now owns 2,525 shares of the restaurant operator's stock worth $382,000 after buying an additional 68 shares during the period. 82.37% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, COO Tracy L. Skeans sold 3,494 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $158.00, for a total transaction of $552,052.00. Following the sale, the chief operating officer directly owned 3 shares of the company's stock, valued at approximately $474. This represents a 99.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 sale, the chief executive officer owned 483 shares of the company's stock, valued at approximately $77,482.86. This represents a 36.45% decrease in their ownership of the stock. 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 a total of 19,043 shares of company stock worth $2,978,180 over the last quarter. 0.14% of the stock is owned by insiders.

Yum! Brands News Summary

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

• Positive Sentiment: Robert W. Baird upgraded YUM to “strong buy,” providing a bullish counterpoint to other recent rating changes. Analyst ratings and beef tariff article
• Positive Sentiment: A temporary 90-day waiver on beef import tariffs could reduce input costs for fast-food operators, potentially benefiting Yum!’s KFC and Taco Bell businesses, although the impact may be limited and temporary. Beef tariff waiver article
• Positive Sentiment: Pizza Hut launched a football-season marketing campaign with Pepsi and Josh Allen, alongside promotional meal deals, which could support near-term customer traffic and sales. Pizza Hut football campaign

Yum! Brands Price Performance

NYSE:YUM opened at $154.74 on Thursday. The firm has a market capitalization of $42.23 billion, a P/E ratio of 19.46, a PEG ratio of 2.54 and a beta of 0.55. Yum! Brands, Inc. has a one year low of $137.33 and a one year high of $170.14. The company's 50-day simple moving average is $153.47 and its 200 day simple moving average is $155.91.

Yum! Brands (NYSE:YUM - Get Free Report) last announced its earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share for the quarter, beating analysts' consensus estimates 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 business had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter last year, the firm earned $1.44 earnings per share. The business's revenue for the quarter was up 12.2% on a year-over-year basis. On average, equities research analysts expect that Yum! Brands, Inc. will post 6.42 earnings per share for the current fiscal year.

Yum! Brands announced that its board has approved a share buyback program on Tuesday, June 16th that allows the company to repurchase $4.00 billion in shares. This repurchase authorization allows the restaurant operator to buy up to 9.4% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Robert W. Baird raised Yum! Brands to a "strong-buy" rating in a research report on Monday. Morgan Stanley raised Yum! Brands from an "equal weight" rating to an "overweight" rating and increased their target price for the stock from $180.00 to $185.00 in a research report on Wednesday, June 3rd. Zacks Research cut Yum! Brands from a "hold" rating to a "strong sell" rating in a research note on Monday. JPMorgan Chase & Co. dropped their price target on Yum! Brands from $170.00 to $160.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. Finally, BMO Capital Markets reaffirmed a "market perform" rating and issued a $168.00 price target on shares of Yum! Brands in a research note on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $174.65.

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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