Canandaigua National Bank & Trust Co. Invests $1.18 Million in Yum! Brands, Inc. $YUM

Canandaigua National Bank & Trust Co. purchased a new position in shares of Yum! Brands, Inc. (NYSE:YUM) during the second quarter, HoldingsChannel.com reports. The institutional investor purchased 7,358 shares of the restaurant operator’s stock, valued at approximately $1,176,000.

Other institutional investors also recently bought and sold shares of the company. Steph & Co. lifted its stake in shares of Yum! Brands by 107.5% during the 1st quarter. Steph & Co. now owns 166 shares of the restaurant operator’s stock worth $26,000 after purchasing an additional 86 shares during the period. MV Capital Management Inc. purchased a new stake in Yum! Brands in the fourth quarter valued at approximately $28,000. Manning & Napier Advisors LLC acquired a new position in Yum! Brands during the first quarter worth approximately $28,000. Wiser Advisor Group LLC acquired a new position in shares of Yum! Brands in the 3rd quarter valued at $28,000. Finally, State of Wyoming purchased a new stake in shares of Yum! Brands during the 1st quarter valued at $30,000. 82.37% of the stock is currently owned by hedge funds and other institutional investors.

Yum! Brands Trading Up 3.2%

YUM stock opened at $152.37 on Thursday. The firm has a 50 day simple moving average of $153.68 and a 200-day simple moving average of $156.53. The company has a market capitalization of $42.00 billion, a P/E ratio of 19.17, a PEG ratio of 2.36 and a beta of 0.55. Yum! Brands, Inc. has a twelve month low of $137.33 and a twelve month high of $170.14.

Yum! Brands (NYSE:YUM) last issued its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $2.18 billion. During the same quarter last year, the company posted $1.44 earnings per share. The company’s quarterly revenue was up 12.2% compared to the same quarter last year. On average, research analysts predict that Yum! Brands, Inc. will post 6.52 EPS for the current year.

Yum! Brands Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Wednesday, May 27th were issued a $0.75 dividend. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $3.00 annualized dividend and a dividend yield of 2.0%. Yum! Brands’s payout ratio is 37.74%.

Yum! Brands announced that its board has authorized a share buyback program on Tuesday, June 16th that permits the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization permits 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 leadership believes its shares are undervalued.

Yum! Brands News Roundup

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

• Positive Sentiment: JPMorgan maintained an “overweight” rating on YUM while lowering its price target from $170 to $160. The revised target still implies upside and suggests the bank views the recent weakness as an opportunity, although the reduction reflects more cautious expectations. JPMorgan rating and price target report
• Positive Sentiment: Analysts continue to highlight YUM’s nearly $9 billion digital ecosystem, which spans mobile ordering, loyalty programs and restaurant operations. Stronger digital engagement could support sales, customer frequency and franchisee productivity over time. YUM’s digital growth engine
• Positive Sentiment: Commentary on a potential $2.7 billion Pizza Hut exit suggests a separation could simplify YUM’s brand portfolio, reduce debt and allow greater focus on faster-growing KFC and Taco Bell. The transaction remains a strategic possibility rather than a confirmed deal. YUM’s Pizza Hut exit analysis
• Neutral Sentiment: Vice President David Eric Russell sold 7,961 shares worth approximately $1.22 million, reducing his direct holdings by about 40%. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a signal of management’s current outlook. SEC insider transaction filing
• Negative Sentiment: Reports that Michigan health officials contacted Yum! about a Taco Bell cyclospora outbreak before a public alert have raised concerns about customer traffic, sales, legal exposure and potential reputational damage. The issue remains a significant overhang for the stock. Michigan cyclospora alert involving Taco Bell

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Royal Bank Of Canada increased their target price on Yum! Brands from $165.00 to $170.00 and gave the stock a “sector perform” rating in a research report on Friday, July 31st. Morgan Stanley raised Yum! Brands from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $180.00 to $185.00 in a research note on Wednesday, June 3rd. BMO Capital Markets reissued a “market perform” rating and set a $168.00 target price on shares of Yum! Brands in a research report on Monday, May 4th. Evercore reissued an “outperform” rating on shares of Yum! Brands in a research report on Tuesday, June 16th. Finally, UBS Group restated a “buy” rating on shares of Yum! Brands in a report on Thursday, June 18th. Eleven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Yum! Brands presently has an average rating of “Moderate Buy” and a consensus target price of $174.31.

Insider Activity

In other Yum! Brands news, CEO Sean Tresvant sold 3,000 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $154.68, for a total value of $464,040.00. Following the transaction, the chief executive officer owned 3,140 shares of the company’s stock, valued at $485,695.20. This trade represents a 48.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP David Eric Russell sold 7,961 shares of Yum! Brands stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $153.15, for a total value of $1,219,227.15. Following the completion of the transaction, the vice president owned 11,960 shares of the company’s stock, valued at approximately $1,831,674. The trade was a 39.96% 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 have sold 20,386 shares of company stock valued at $3,169,392 over the last quarter. Corporate insiders own 0.14% of the company’s stock.

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.