Canandaigua National Bank & Trust Co. Takes Position in Yum! Brands, Inc. $YUM

Canandaigua National Bank & Trust Co. bought a new position in shares of Yum! Brands, Inc. (NYSE:YUM) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 7,358 shares of the restaurant operator’s stock, valued at approximately $1,176,000.

A number of other institutional investors have also recently made changes to their positions in the company. Brighton Jones LLC increased its stake in Yum! Brands by 8.0% in the fourth quarter. Brighton Jones LLC now owns 7,861 shares of the restaurant operator’s stock worth $1,055,000 after purchasing an additional 583 shares during the period. First Trust Advisors LP boosted its position in Yum! Brands by 124.5% in the 2nd quarter. First Trust Advisors LP now owns 151,316 shares of the restaurant operator’s stock valued at $22,422,000 after buying an additional 83,916 shares during the period. CIBC Asset Management Inc grew its stake in Yum! Brands by 10.0% in the 2nd quarter. CIBC Asset Management Inc now owns 117,824 shares of the restaurant operator’s stock worth $17,447,000 after acquiring an additional 10,755 shares in the last quarter. Treasurer of the State of North Carolina increased its position in shares of Yum! Brands by 1.0% during the second quarter. Treasurer of the State of North Carolina now owns 130,205 shares of the restaurant operator’s stock worth $19,294,000 after acquiring an additional 1,256 shares during the period. Finally, HUB Investment Partners LLC raised its stake in shares of Yum! Brands by 59.1% during the second quarter. HUB Investment Partners LLC now owns 2,319 shares of the restaurant operator’s stock valued at $344,000 after acquiring an additional 861 shares in the last quarter. Hedge funds and other institutional investors own 82.37% of the company’s stock.

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

YUM has been the topic of several research reports. Citigroup raised their price objective on Yum! Brands from $175.00 to $178.00 and gave the stock a “neutral” rating in a report on Sunday, July 12th. JPMorgan Chase & Co. dropped their price target on Yum! Brands from $170.00 to $160.00 and set an “overweight” rating on the stock in a research report on Tuesday. Wells Fargo & Company lifted their price objective on Yum! Brands from $160.00 to $165.00 and gave the company an “equal weight” rating in a report on Thursday, April 30th. Evercore reiterated an “outperform” rating on shares of Yum! Brands in a report on Tuesday, June 16th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $174.00 price target on shares of Yum! Brands in a research report on Friday, July 31st. Eleven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $174.31.

Insider Transactions at Yum! Brands

In related news, CEO Sean Tresvant sold 3,000 shares of the stock in a transaction that occurred on 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 in the company, valued at approximately $485,695.20. This represents a 48.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Scott Mezvinsky sold 268 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 transaction of $41,044.20. Following the sale, the chief executive officer owned 483 shares of the company’s stock, valued at approximately $73,971.45. The trade was a 35.69% 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. Company insiders own 0.14% of the company’s stock.

Yum! Brands Trading Up 3.2%

NYSE YUM opened at $152.37 on Thursday. The company has a fifty day simple moving average of $153.68 and a two-hundred day simple moving average of $156.53. The stock has a market cap of $42.00 billion, a P/E ratio of 19.17, a P/E/G ratio of 2.36 and a beta of 0.55. Yum! Brands, Inc. has a 12-month low of $137.33 and a 12-month high of $170.14.

Yum! Brands (NYSE:YUM) last released its earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.58 by $0.04. The firm had revenue of $2.17 billion for 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%.The firm’s revenue was up 12.2% on a year-over-year basis. During the same period in the prior year, the firm earned $1.44 EPS. As a group, sell-side analysts forecast that Yum! Brands, Inc. will post 6.52 earnings per share for the current year.

Yum! Brands Announces Dividend

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

Yum! Brands declared that its board has authorized a share repurchase plan on Tuesday, June 16th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the restaurant operator to buy up to 9.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

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.