Yum! Brands, Inc. (NYSE:YUM – Get Free Report) VP David Eric Russell sold 7,961 shares of the business’s stock in a transaction on Monday, August 3rd. The stock was 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 $1,831,674. This represents a 39.96% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Yum! Brands Price Performance
Shares of NYSE:YUM opened at $147.78 on Wednesday. Yum! Brands, Inc. has a 1 year low of $137.33 and a 1 year high of $170.14. The company has a market cap of $40.73 billion, a P/E ratio of 18.59, a PEG ratio of 1.95 and a beta of 0.55. The stock’s fifty day moving average price is $153.67 and its 200-day moving average price is $156.59.
Yum! Brands (NYSE:YUM – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, topping the consensus estimate of $1.58 by $0.04. The company had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.18 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.Yum! Brands’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same period last year, the company earned $1.44 EPS. On average, sell-side analysts anticipate that Yum! Brands, Inc. will post 6.6 earnings per share for the current year.
Yum! Brands Dividend Announcement
Yum! Brands declared that its board has authorized a stock repurchase plan on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 9.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s leadership believes its shares are undervalued.
Analysts Set New Price Targets
A number of research firms have commented on YUM. Morgan Stanley raised shares of Yum! Brands from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $180.00 to $185.00 in a research report on Wednesday, June 3rd. Royal Bank Of Canada raised their price target on Yum! Brands from $165.00 to $170.00 and gave the stock a “sector perform” rating in a research note on Friday. Wells Fargo & Company lifted their price objective on Yum! Brands from $160.00 to $165.00 and gave the stock an “equal weight” rating in a report on Thursday, April 30th. BMO Capital Markets reiterated a “market perform” rating and set a $168.00 price objective on shares of Yum! Brands in a research report on Monday, May 4th. Finally, Citigroup raised their target price on Yum! Brands from $175.00 to $178.00 and gave the stock a “neutral” rating in a research report on Sunday, July 12th. Eleven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Yum! Brands currently has a consensus rating of “Moderate Buy” and a consensus target price of $174.31.
Yum! Brands News Summary
Here are the key news stories impacting Yum! Brands this week:
- Positive Sentiment: Taco Bell reported strong digital-sales momentum tied to its loyalty program and plans to launch a redesigned app in the third quarter. Better engagement and ordering frequency could support a recovery in traffic and sales. Taco Bell credits its loyalty program for digital sales growth
- Positive Sentiment: Analysts highlighted YUM’s nearly $9 billion digital ecosystem across ordering, loyalty and restaurant operations. The platform offers long-term growth potential, although investors remain cautious about execution risk. YUM’s digital growth engine
- Positive Sentiment: JPMorgan lowered its price target from $170 to $160 but maintained an “overweight” rating, implying substantial potential upside from the referenced trading level. The target cut nevertheless signals more measured expectations. JPMorgan rating and price target report
- Neutral Sentiment: Commentary on a potential $2.7 billion Pizza Hut exit suggests that separating the brand could simplify YUM’s portfolio, reduce debt and direct resources toward KFC and Taco Bell. However, the reports describe a strategic scenario rather than confirming a completed transaction. YUM’s Pizza Hut exit analysis
- Neutral Sentiment: Executives disclosed modest stock sales conducted under pre-arranged Rule 10b5-1 plans, including sales by CEO Christopher Lee Turner and other company executives. The transactions are unlikely to represent a strong discretionary bearish signal. SEC insider transaction filing
- Negative Sentiment: Reports that Michigan health officials contacted Yum! about the Taco Bell cyclospora outbreak before a public alert have intensified concerns about customer traffic, sales damage and potential brand-reputation costs. Rising reported fatalities are adding to investor anxiety. Michigan cyclospora alert involving Taco Bell
Institutional Investors Weigh In On Yum! Brands
A number of hedge funds have recently modified their holdings of the business. Norges Bank bought a new position in Yum! Brands in the 4th quarter worth $706,799,000. Capital International Investors increased its position in Yum! Brands by 20.0% in the fourth quarter. Capital International Investors now owns 19,419,826 shares of the restaurant operator’s stock worth $2,938,139,000 after buying an additional 3,240,190 shares in the last quarter. Alyeska Investment Group L.P. purchased a new stake in Yum! Brands in the fourth quarter worth about $272,794,000. Invesco Ltd. raised its stake in shares of Yum! Brands by 42.2% in the fourth quarter. Invesco Ltd. now owns 4,183,964 shares of the restaurant operator’s stock worth $632,950,000 after buying an additional 1,240,777 shares during the period. Finally, Boston Partners purchased a new position in shares of Yum! Brands during the 4th quarter valued at about $168,604,000. Institutional investors own 82.37% of the company’s stock.
Yum! Brands Company 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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