Yum! Brands (NYSE:YUM – Get Free Report) was upgraded by research analysts at Robert W. Baird to a “strong-buy” rating in a research report issued on Monday,Zacks.com reports.
Several other analysts have also issued reports on the stock. Morgan Stanley upgraded shares of Yum! Brands from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $180.00 to $185.00 in a research report on Wednesday, June 3rd. Royal Bank Of Canada upped their target price on shares of Yum! Brands from $165.00 to $170.00 and gave the stock a “sector perform” rating in a report on Friday, July 31st. Wells Fargo & Company boosted their target price 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 reaffirmed a “market perform” rating and set a $168.00 target price on shares of Yum! Brands in a research note on Monday, May 4th. Finally, Weiss Ratings cut Yum! Brands from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $174.65.
Check Out Our Latest Research Report on Yum! Brands
Yum! Brands Trading Down 0.5%
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 business 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 business’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.44 EPS. Equities research analysts predict that Yum! Brands will post 6.42 earnings per share for the current fiscal year.
Yum! Brands announced that its Board of Directors has authorized a stock buyback program on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to buy up to 9.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.
Insiders Place Their Bets
In related news, CEO Scott Mezvinsky sold 277 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total transaction of $44,436.34. Following 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Christopher Lee Turner sold 270 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $148.14, for a total transaction of $39,997.80. Following the completion of the sale, the chief executive officer directly owned 64,282 shares in the company, valued at approximately $9,522,735.48. This represents a 0.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 19,043 shares of company stock worth $2,978,180. Corporate insiders own 0.14% of the company’s stock.
Institutional Trading of Yum! Brands
Several institutional investors and hedge funds have recently made changes to their positions in the company. Steph & Co. boosted its holdings in shares of Yum! Brands by 107.5% in the first quarter. Steph & Co. now owns 166 shares of the restaurant operator’s stock valued at $26,000 after acquiring an additional 86 shares during the period. Edmond DE Rothschild Holding S.A. purchased a new position in shares of Yum! Brands in the 2nd quarter valued at approximately $27,000. MV Capital Management Inc. acquired a new stake in shares of Yum! Brands during the fourth quarter worth $28,000. Manning & Napier Advisors LLC purchased a new position in Yum! Brands during the 1st quarter worth $28,000. Finally, Wiser Advisor Group LLC purchased a new position in Yum! Brands during the third quarter worth about $28,000. 82.37% of the stock is owned by hedge funds and other institutional investors.
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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