Mirae Asset Global Investments Co. Ltd. Makes New $12.84 Million Investment in Yum! Brands, Inc. $YUM

Key Points

• Mirae Asset Global Investments opened a new position in Yum! Brands, buying 94,205 shares valued at approximately $12.84 million. Institutional investors collectively own 82.37% of the company’s stock.
• Yum! reported quarterly earnings of $1.56 per share, beating the $1.51 consensus estimate, while revenue reached $2.05 billion and rose 3.8% year over year. Taco Bell weakness, including a 4% decline in U.S. same-store sales, tempered the results.
• Analyst views are mixed but lean positive: 14 analysts rate the stock Buy and 12 rate it Hold, for a consensus “Moderate Buy” rating and a $171.78 price target.

Mirae Asset Global Investments Co. Ltd. bought a new stake in Yum! Brands, Inc. (NYSE:YUM - Free Report) in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 94,205 shares of the restaurant operator's stock, valued at approximately $12,844,000.

Several other hedge funds have also made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of Yum! Brands during the second quarter worth about $4,186,811,000. Wellington Management Group LLP increased its position in Yum! Brands by 1,373.2% in the 2nd quarter. Wellington Management Group LLP now owns 4,631,940 shares of the restaurant operator's stock valued at $740,462,000 after acquiring an additional 4,317,526 shares during the period. Bank of America Corp DE purchased a new stake in Yum! Brands during the 2nd quarter valued at approximately $638,589,000. Legal & General Group Plc purchased a new stake in Yum! Brands during the 2nd quarter valued at approximately $297,591,000. Finally, Bank of New York Mellon Corp acquired a new stake in Yum! Brands during the 2nd quarter worth approximately $279,432,000. Institutional investors and hedge funds own 82.37% of the company's stock.

Yum! Brands Stock Down 0.5%

Shares of NYSE:YUM opened at $156.87 on Wednesday. Yum! Brands, Inc. has a 52 week low of $134.26 and a 52 week high of $170.14. The company has a 50-day moving average price of $146.29 and a 200 day moving average price of $153.48. The company has a market cap of $42.81 billion, a P/E ratio of 19.73, a PEG ratio of 2.42 and a beta of 0.53.

Yum! Brands (NYSE:YUM - Get Free Report) last released its earnings results on Tuesday, November 3rd. The restaurant operator reported $1.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.05. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%. The company had revenue of $2.05 billion for the quarter, compared to analysts' expectations of $2.05 billion. During the same quarter in the previous year, the firm posted $1.58 EPS. The firm's quarterly revenue was up 3.8% on a year-over-year basis. Analysts expect that Yum! Brands, Inc. will post 6.64 EPS for the current year.

Yum! Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Wednesday, September 9th were paid a $0.75 dividend. The ex-dividend date was Wednesday, September 9th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.9%. Yum! Brands's payout ratio is 37.74%.

Insider Activity at Yum! Brands

In other Yum! Brands news, CEO Christopher Turner sold 285 shares of the stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $140.11, for a total value of $39,931.35. Following the completion of the transaction, the chief executive officer owned 63,225 shares in the company, valued at approximately $8,858,454.75. This represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a legal 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 Scott Mezvinsky sold 241 shares of the firm's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $136.89, for a total value of $32,990.49. Following the completion of the sale, the chief executive officer directly owned 482 shares of the company's stock, valued at approximately $65,980.98. This trade represents a 33.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 4,288 shares of company stock worth $666,149 over the last three months. 0.14% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Yum! Brands

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

• Positive Sentiment: Adjusted earnings were $1.56 per share, above analyst estimates. KFC’s global strength helped offset pressure at Taco Bell, while revenue rose 3.8% year over year to $2.05 billion. Article: YUM Stock Up on Q3 Earnings Beat, Revenues Miss on Taco Bell Weakness
• Positive Sentiment: Management said Taco Bell sales improved after the cyclospora-related disruption, with the brand reportedly outperforming the broader quick-service restaurant industry since late September. That recovery could ease a major near-term concern if it continues. Article: Yum Says Taco Bell Sales Are Improving After Cyclospora Outbreak Fallout
• Positive Sentiment: TD Cowen raised its price target to $180 from $177 and maintained a Buy rating, signaling continued analyst confidence in the shares. Article: TD Cowen stock recommendations
• Neutral Sentiment: Reported net income included a substantial gain related to the Pizza Hut divestiture. This lifts headline profit but is a one-time item, so investors may focus more on ongoing operating performance. Article: Yum! Brands reports third-quarter results and Pizza Hut divestiture gain
• Negative Sentiment: Taco Bell’s U.S. same-store sales fell 4% in Q3 as a cyclospora outbreak linked to lettuce hurt traffic. Revenue of $2.05 billion also came in below some analyst estimates, tempering the impact of the EPS beat. Article: Taco Bell sales fall more than expected on cyclosporiasis outbreak hit

Analysts Set New Price Targets

A number of research firms have weighed in on YUM. TD Cowen increased their price objective on Yum! Brands from $177.00 to $180.00 and gave the stock a "buy" rating in a research report on Tuesday. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $167.00 target price (down from $174.00) on shares of Yum! Brands in a report on Wednesday, October 21st. Guggenheim cut their price target on Yum! Brands from $180.00 to $155.00 and set a "buy" rating for the company in a research note on Tuesday, October 6th. Citigroup decreased their price target on Yum! Brands from $176.00 to $163.00 and set a "neutral" rating for the company in a report on Wednesday, October 21st. Finally, JPMorgan Chase & Co. decreased their price target on Yum! Brands from $160.00 to $150.00 and set an "overweight" rating for the company in a report on Tuesday, September 29th. Fourteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, Yum! Brands has a consensus rating of "Moderate Buy" and a consensus target price of $171.78.

Yum! Brands Profile

Yum! Brands, Inc is a global restaurant company that operates, franchises and licenses quick-service and fast-casual restaurants. Its principal brands are KFC, which specializes in fried and other chicken products; Taco Bell, which offers Mexican-inspired food; Pizza Hut, which sells pizzas and related menu items; and The Habit Burger Grill, a fast-casual burger restaurant chain.

The company's business is primarily franchise-based, with restaurants operated by independent franchisees and licensees alongside company-operated locations.

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