Quantitative Investment Management LLC acquired a new stake in shares of Yum! Brands, Inc. (NYSE:YUM – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 3,656 shares of the restaurant operator’s stock, valued at approximately $584,000.
A number of other institutional investors also recently bought and sold shares of the stock. Susquehanna Fundamental Investments LLC acquired a new position in Yum! Brands during the 2nd quarter valued at approximately $2,022,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Yum! Brands by 23.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 30,580 shares of the restaurant operator’s stock worth $4,889,000 after buying an additional 5,818 shares during the period. New Mexico Educational Retirement Board grew its holdings in shares of Yum! Brands by 9.5% during the second quarter. New Mexico Educational Retirement Board now owns 13,772 shares of the restaurant operator’s stock valued at $2,202,000 after buying an additional 1,200 shares during the last quarter. Mufg Securities Americas Inc. grew its holdings in shares of Yum! Brands by 8.1% during the second quarter. Mufg Securities Americas Inc. now owns 8,302 shares of the restaurant operator’s stock valued at $1,327,000 after buying an additional 619 shares during the last quarter. Finally, Nissay Asset Management Corp Japan raised its stake in shares of Yum! Brands by 3.4% in the second quarter. Nissay Asset Management Corp Japan now owns 37,033 shares of the restaurant operator’s stock worth $5,920,000 after purchasing an additional 1,230 shares during the last quarter. 82.37% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
Several brokerages recently weighed in on YUM. UBS Group reiterated a “buy” rating on shares of Yum! Brands in a report on Thursday, June 18th. Morgan Stanley raised shares of Yum! Brands from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $180.00 to $185.00 in a report on Wednesday, June 3rd. Royal Bank Of Canada increased their price objective on shares of Yum! Brands from $165.00 to $170.00 and gave the stock a “sector perform” rating in a research note on Friday, July 31st. Citigroup raised their target price on shares of Yum! Brands from $175.00 to $178.00 and gave the stock a “neutral” rating in a report on Sunday, July 12th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Yum! Brands from $170.00 to $160.00 and set an “overweight” rating for the company in a research report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $174.65.
Insider Buying and Selling
In other news, CEO Scott Mezvinsky sold 277 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $160.42, for a total transaction of $44,436.34. Following the transaction, the chief executive officer owned 483 shares in the company, valued at $77,482.86. This trade represents a 36.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Eric Russell sold 7,961 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $153.15, for a total transaction of $1,219,227.15. Following the transaction, the vice president directly owned 11,960 shares in the company, valued at approximately $1,831,674. The trade was a 39.96% 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. Insiders have sold a total of 18,780 shares of company stock worth $2,940,693 in the last ninety days. 0.14% of the stock is owned by corporate insiders.
More Yum! Brands News
Here are the key news stories impacting Yum! Brands this week:
- Positive Sentiment: Pizza Hut sale streamlines the portfolio: Yum! Brands completed the sale of Pizza Hut outside Mainland China to LongRange Capital for approximately $1.5 billion, with an additional potential $75 million earn-out through 2030. The divestiture gives management more resources to focus on Taco Bell, KFC and other higher-growth businesses. Yum! Brands Completes Sale of Pizza Hut to LongRange Capital
- Positive Sentiment: Taco Bell expands in the UAE: Yum! Brands’ franchise partner Americana Restaurants signed an agreement to launch Taco Bell in the United Arab Emirates. The move expands the brand’s international footprint and could provide a long-term source of unit and royalty growth. Americana Restaurants signs deal to launch Taco Bell in UAE
- Neutral Sentiment: CEO stock sale was planned: CEO Scott Mezvinsky sold 268 shares worth approximately $41,176, reducing his holdings by 35.7%. Because the transaction was executed under a pre-arranged Rule 10b5-1 plan, it is less likely to represent a discretionary negative view of YUM’s valuation or outlook. SEC Form 4 filing
- Negative Sentiment: Investors remain cautious about Pizza Hut’s turnaround: The divestiture removes a slower-growing or challenged brand from Yum!’s consolidated portfolio, but it also reduces revenue diversification. Pizza Hut will now pursue its turnaround under private-equity ownership, while reports that Eduardo Luz is serving as interim CEO add uncertainty around the transition. The broader transaction, including the separate Mainland China deal, totals approximately $2.7 billion. Yum has sold Pizza Hut for $1.5B
Yum! Brands Stock Performance
Shares of NYSE YUM opened at $152.08 on Wednesday. The company’s fifty day moving average price is $153.54 and its 200 day moving average price is $155.70. Yum! Brands, Inc. has a 1 year low of $137.33 and a 1 year high of $170.14. The company has a market capitalization of $41.50 billion, a PE ratio of 19.13, a price-to-earnings-growth ratio of 2.46 and a beta of 0.55.
Yum! Brands (NYSE:YUM – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.58 by $0.04. The company had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.18 billion. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The firm’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.44 earnings per share. On average, equities analysts expect that Yum! Brands, Inc. will post 6.42 EPS for the current year.
Yum! Brands Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Wednesday, September 9th will be paid a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Wednesday, September 9th. Yum! Brands’s payout ratio is currently 37.74%.
Yum! Brands declared that its Board of Directors has authorized a share buyback plan on Tuesday, June 16th that authorizes the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization authorizes the restaurant operator to repurchase up to 9.4% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.
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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