Yum! Brands (NYSE:YUM) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its price target on Yum! to $165 (an "equal weight" rating), implying about a 3.8% upside, while the analyst consensus remains a Moderate Buy with a $175.44 average target.
• Yum! beat Q1 estimates with $1.50 EPS (vs. $1.39) and $2.06B revenue (+15.2% YoY); Taco Bell led results with ~8% same-store sales growth and digital sales reached a record ~63% of system sales (~$11B), bolstering margins.
• Insiders sold about $2.29M of stock last quarter (including small CEO dispositions), leaving insiders with only 0.14% ownership, which may be viewed as a governance or conviction consideration by some investors.

Yum! Brands (NYSE:YUM - Get Free Report) had its target price increased by analysts at Wells Fargo & Company from $160.00 to $165.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the restaurant operator's stock. Wells Fargo & Company's price objective would indicate a potential upside of 3.82% from the stock's previous close.

Other equities research analysts also recently issued reports about the stock. Gordon Haskett upgraded shares of Yum! Brands from a "hold" rating to a "buy" rating in a research note on Thursday, January 8th. Evercore reiterated an "outperform" rating and issued a $190.00 price target on shares of Yum! Brands in a report on Friday, February 13th. BMO Capital Markets reissued a "market perform" rating and issued a $165.00 price objective on shares of Yum! Brands in a research report on Thursday, February 5th. Barclays set a $185.00 price objective on Yum! Brands and gave the stock an "overweight" rating in a research note on Thursday, February 5th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $165.00 target price on shares of Yum! Brands in a research report on Monday, April 20th. Twelve research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $175.44.

Yum! Brands Price Performance

Yum! Brands stock opened at $158.94 on Thursday. The company has a market cap of $43.89 billion, a price-to-earnings ratio of 28.92, a price-to-earnings-growth ratio of 2.05 and a beta of 0.66. Yum! Brands has a 12 month low of $137.33 and a 12 month high of $169.39. The stock's 50-day moving average is $159.85 and its 200-day moving average is $154.42.

Yum! Brands (NYSE:YUM - Get Free Report) last issued its earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.39 by $0.11. The business had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.04 billion. Yum! Brands had a negative return on equity of 22.42% and a net margin of 18.98%.The company's revenue for the quarter was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.30 EPS. Research analysts anticipate that Yum! Brands will post 6.68 EPS for the current year.

Insider Buying and Selling

In other news, CEO Scott Mezvinsky sold 284 shares of the firm's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $166.02, for a total transaction of $47,149.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Christopher Lee Turner sold 242 shares of the business's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $166.02, for a total value of $40,176.84. Following the completion of the transaction, the chief executive officer owned 65,297 shares in the company, valued at approximately $10,840,607.94. This trade represents a 0.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 14,138 shares of company stock valued at $2,289,990 in the last quarter. Company insiders own 0.14% of the company's stock.

Institutional Investors Weigh In On Yum! Brands

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Steph & Co. grew its position in shares of Yum! Brands by 107.5% during the first quarter. Steph & Co. now owns 166 shares of the restaurant operator's stock worth $26,000 after buying an additional 86 shares in the last quarter. Salomon & Ludwin LLC raised its holdings in Yum! Brands by 679.2% in the third quarter. Salomon & Ludwin LLC now owns 187 shares of the restaurant operator's stock valued at $28,000 after acquiring an additional 163 shares in the last quarter. MV Capital Management Inc. bought a new position in Yum! Brands during the 4th quarter valued at $28,000. Wiser Advisor Group LLC bought a new position in Yum! Brands during the 3rd quarter valued at $28,000. Finally, Community Bank N.A. acquired a new position in Yum! Brands during the 3rd quarter worth $29,000. 82.37% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Yum! Brands

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

• Positive Sentiment: Beat on EPS & revenue — Yum reported adjusted EPS of $1.50 (vs. ~$1.38 consensus) and revenue of $2.06B, driven by solid top-line growth; this is the primary catalyst for the stock strength. Yum! Brands Reports First-Quarter Results
• Positive Sentiment: Taco Bell led the quarter — Taco Bell logged ~8% same-store sales growth and was highlighted on the call as the primary growth driver, offsetting weaker segments; investors are rewarding the unit-level momentum. Yum Brands earnings top estimates, fueled by Taco Bell's 8% same-store sales growth
• Positive Sentiment: Digital sales and profitability strength — Digital sales approached $11B and made up a record ~63% of system sales; reported profit metrics (GAAP net income jump / strong margins) support better unit economics and investor confidence. Yum! Brands Q1 2026 profit jumps 71% to $432m
• Neutral Sentiment: Growth initiatives highlighted — Management emphasized AI-driven menu/menu-board pilots, beverage expansion and other innovation as levers to sustain traffic and AUV gains; these are longer‑term potential catalysts but not immediate earnings drivers. Yum Brands wants AI and beverages to supercharge growth
• Neutral Sentiment: Franchise expansion — Yum opened over 1,000 units to start fiscal 2026, supporting longer-term system sales growth and scale, though near-term returns depend on mix and franchisee economics. Yum-Brands-Opens-More-Than-1000-Units-in-Strong-Start-to-Fiscal-2026
• Negative Sentiment: Mixed performance across brands — Pizza Hut and some other segments lagged, and company-level metrics (e.g., an unusual negative return on equity noted in filings) could concern value-focused investors if persistent. Yum! Brands (YUM) Stock Surges as Taco Bell Delivers Stellar Q1 Performance

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.