Yum! Brands, Inc. (NYSE:YUM) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of Yum! Brands, Inc. (NYSE:YUM) have received an average rating of “Moderate Buy” from the nineteen ratings firms that are covering the firm, MarketBeat reports. Seven analysts have rated the stock with a hold recommendation and twelve have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $174.6471.

YUM has been the topic of a number of recent research reports. TD Cowen reissued a “buy” rating and issued a $180.00 target price on shares of Yum! Brands in a research report on Tuesday, June 16th. Evercore reaffirmed an “outperform” rating on shares of Yum! Brands in a research note on Tuesday, June 16th. Morgan Stanley upgraded shares of 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 report on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $174.00 price objective on shares of Yum! Brands in a research report on Friday, July 31st. Finally, Wells Fargo & Company increased their target price on shares of Yum! Brands from $160.00 to $165.00 and gave the stock an “equal weight” rating in a report on Thursday, April 30th.

Yum! Brands Price Performance

YUM opened at $156.55 on Friday. The business’s 50-day moving average price is $153.46 and its two-hundred day moving average price is $155.95. Yum! Brands has a 1 year low of $137.33 and a 1 year high of $170.14. The company has a market capitalization of $42.72 billion, a price-to-earnings ratio of 19.69, a P/E/G ratio of 2.55 and a beta of 0.55.

Yum! Brands (NYSE:YUM) last issued its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.58 by $0.04. The company had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.18 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.The company’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.44 earnings per share. Sell-side analysts anticipate that Yum! Brands will post 6.42 earnings per share for the current fiscal year.

Yum! Brands announced that its Board of Directors has approved a stock repurchase program on Tuesday, June 16th that allows the company to buyback $4.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to repurchase up to 9.4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at Yum! Brands

In other news, CEO Christopher Lee Turner sold 270 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $148.14, for a total value of $39,997.80. Following the completion of the transaction, the chief executive officer owned 64,282 shares in the company, valued at $9,522,735.48. This trade represents a 0.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Scott Mezvinsky sold 277 shares of Yum! Brands stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total value of $44,436.34. Following the completion of the sale, the chief executive officer directly owned 483 shares in the company, valued at approximately $77,482.86. This represents 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. Over the last 90 days, insiders sold 19,043 shares of company stock worth $2,978,180. Corporate insiders own 0.14% of the company’s stock.

Institutional Investors Weigh In On Yum! Brands

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Harrell Investment Partners LLC grew its stake 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 last quarter. Magnolia Capital Advisors LLC lifted its stake in Yum! Brands by 2.0% during the fourth quarter. Magnolia Capital Advisors LLC now owns 3,292 shares of the restaurant operator’s stock valued at $498,000 after purchasing an additional 63 shares during the last quarter. Econ Financial Services Corp lifted its stake in 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 purchasing an additional 63 shares during the last quarter. Essex Financial Services Inc. boosted its holdings in Yum! Brands by 1.0% during 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. grew its position 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 last quarter. Institutional investors own 82.37% of the company’s stock.

Key Stories Impacting Yum! Brands

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

• Positive Sentiment: Pizza Hut is launching a major football-season promotion with Pepsi and Buffalo Bills quarterback Josh Allen, including new advertising, promotional giveaways and value-oriented menu offers. The campaign could support traffic and sales during a key promotional period. Pizza Hut Teams Up With Pepsi and Josh Allen
• Positive Sentiment: KFC introduced its Hot Ranch Big Dip and Double Crispy Hot Wings nationwide, supported by a marketing partnership with streamer IShowSpeed. New products and high-profile promotions may help KFC maintain customer engagement and boost near-term demand. KFC Debuts New Hot Ranch Big Dip
• Neutral Sentiment: Investor commentary is assessing the implications of Yum!’s Pizza Hut sale and its effect on the company’s portfolio and growth strategy. The reports provide perspective but do not disclose new transaction terms or a fresh operating forecast. What Does the Pizza Hut Sale Mean for Yum! Brands?
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! Brands investors. The announcement may increase uncertainty and headline risk, although it does not itself establish wrongdoing or indicate the likely financial outcome. Pomerantz Investor Alert
• Negative Sentiment: COO Tracy Skeans sold 3,494 YUM shares worth approximately $552,000. The transaction reduced her direct holdings to three shares, which can be viewed negatively; however, it was executed under a pre-arranged Rule 10b5-1 trading plan, reducing its significance as a discretionary signal. SEC Insider Trading Filing

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.