North Dakota State Investment Board Invests $1.45 Million in Yum! Brands, Inc. $YUM

Key Points

• North Dakota State Investment Board opened a new position in Yum! Brands during the fourth quarter, buying 9,561 shares worth about $1.45 million.
• Institutional ownership remains very high, with several large funds adding to Yum! holdings and about 82.37% of the stock now owned by institutions and hedge funds.
• Yum! Brands reported better-than-expected quarterly results, and it also declared a $0.75 quarterly dividend to be paid on June 12, implying a 2.0% annualized yield.

North Dakota State Investment Board bought a new position in shares of Yum! Brands, Inc. (NYSE:YUM - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 9,561 shares of the restaurant operator's stock, valued at approximately $1,446,000.

Several other institutional investors and hedge funds have also made changes to their positions in YUM. Junto Capital Management LP acquired a new position in shares of Yum! Brands during the 3rd quarter worth approximately $133,251,000. Balyasny Asset Management L.P. acquired a new position in shares of Yum! Brands during the 3rd quarter worth approximately $126,945,000. Vanguard Group Inc. boosted its holdings in shares of Yum! Brands by 2.0% during the 3rd quarter. Vanguard Group Inc. now owns 35,242,558 shares of the restaurant operator's stock worth $5,356,869,000 after purchasing an additional 684,946 shares during the last quarter. Marshall Wace LLP acquired a new position in shares of Yum! Brands during the 3rd quarter worth approximately $86,944,000. Finally, Capital International Investors boosted its holdings in shares of Yum! Brands by 3.1% during the 3rd quarter. Capital International Investors now owns 16,179,636 shares of the restaurant operator's stock worth $2,459,940,000 after purchasing an additional 487,069 shares during the last quarter. 82.37% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Yum! Brands

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

• Positive Sentiment: Shareholders backed Yum! Brands’ board and current governance structure at the annual meeting, reducing near-term governance uncertainty and signaling investor support for management. Yum! Brands Shareholders Back Board, Governance Structure
• Positive Sentiment: KFC rolled out limited-time menu promotions, including the return of fried pickles and a new 5-for-$5 tenders deal, which could help drive traffic and support near-term sales at one of Yum’s key brands. KFC Brings Back Popular Fried Pickles and Introduces New 5 for $5 Tenders Deal
• Neutral Sentiment: Taco Bell’s foundation announced $14.5 million in scholarship awards, a brand-building and community-focused update that is positive for reputation but unlikely to materially affect earnings in the near term. Taco Bell Foundation Scholarship Announcement
• Negative Sentiment: Sentiment toward the restaurant sector remains cautious, with UBS describing demand as “still-sluggish,” which may weigh on expectations for Yum’s same-store sales and traffic trends. Investors Remain Cautious Amid Still-Sluggish Restaurant Industry Demand, UBS Says
• Negative Sentiment: A lawsuit alleging Pizza Hut’s AI system caused operational issues and about $100 million in damages could raise legal, reputational, and franchise-related concerns for Yum! Brands. Pizza Hut AI System Lawsuit

Analysts Set New Price Targets

Several research firms have recently commented on YUM. Weiss Ratings lowered shares of Yum! Brands from a "buy (b+)" rating to a "buy (b)" rating in a research report on Wednesday, May 6th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $165.00 price target on shares of Yum! Brands in a research report on Monday, April 20th. UBS Group reaffirmed a "buy" rating and set a $180.00 price target on shares of Yum! Brands in a research report on Monday, February 2nd. TD Cowen lifted their price target on shares of Yum! Brands from $180.00 to $186.00 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Finally, BMO Capital Markets reaffirmed a "market perform" rating and set a $168.00 price target on shares of Yum! Brands in a research report on Monday, May 4th. Twelve analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat, Yum! Brands has an average rating of "Moderate Buy" and an average price target of $176.22.

Yum! Brands Stock Down 0.1%

Shares of NYSE YUM opened at $152.13 on Wednesday. The firm has a market cap of $41.93 billion, a price-to-earnings ratio of 24.54, a PEG ratio of 1.94 and a beta of 0.61. Yum! Brands, Inc. has a 52-week low of $137.33 and a 52-week high of $169.39. The business's 50 day moving average is $157.42 and its two-hundred day moving average is $155.25.

Yum! Brands (NYSE:YUM - Get Free Report) last announced its earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.39 by $0.11. The company had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.04 billion. Yum! Brands had a negative return on equity of 23.51% and a net margin of 20.48%.The firm's quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.30 earnings per share. Analysts anticipate that Yum! Brands, Inc. will post 6.77 EPS for the current fiscal year.

Yum! Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Wednesday, May 27th will be given a $0.75 dividend. The ex-dividend date of this dividend is Wednesday, May 27th. This represents a $3.00 dividend on an annualized basis and a yield of 2.0%. Yum! Brands's payout ratio is presently 48.39%.

Insider Buying and Selling at Yum! Brands

In other Yum! Brands news, COO Tracy L. Skeans sold 1,837 shares of the business's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $152.00, for a total value of $279,224.00. Following the sale, the chief operating officer owned 3,497 shares of the company's stock, valued at $531,544. The trade was a 34.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Scott Mezvinsky sold 277 shares of the business's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $160.48, for a total value of $44,452.96. Following the completion of the sale, the chief executive officer directly owned 483 shares in the company, valued at approximately $77,511.84. The trade was a 36.45% decrease in their position. 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 2,890 shares of company stock valued at $451,123 over the last quarter. 0.14% of the stock is owned by company insiders.

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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