Yum! Brands, Inc. (NYSE:YUM) Receives $174.65 Average Price Target from Analysts

Yum! Brands, Inc. (NYSE:YUM) has been given a consensus rating of “Moderate Buy” by the nineteen analysts that are presently covering the stock, MarketBeat.com reports. Seven research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $174.6471.

YUM has been the topic of several research analyst reports. Wells Fargo & Company raised 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. Argus reduced their price target on shares of Yum! Brands from $185.00 to $180.00 and set a “buy” rating for the company in a report on Monday, August 17th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $174.00 price objective on shares of Yum! Brands in a research report on Friday, July 31st. UBS Group restated a “buy” rating on shares of Yum! Brands in a report on Thursday, June 18th. Finally, Citigroup boosted their price objective on shares of Yum! Brands from $175.00 to $178.00 and gave the company a “neutral” rating in a research report on Sunday, July 12th.

Yum! Brands News Roundup

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

• Positive Sentiment: Yum! Brands outlined a renewed consumer-growth strategy centered on strengthening brand engagement, digital capabilities, loyalty programs and operational execution across KFC, Taco Bell and Pizza Hut. The emphasis on personalized customer experiences and technology could support sales and franchisee performance. Yum! Brands Reveals New Path for Consumer Growth
• Positive Sentiment: The company appointed former HanesBrands CEO Steve Bratspies to its board, effective August 26. His experience managing global consumer brands and improving operations may add expertise as Yum! pursues growth and evaluates its portfolio. Yum! Brands Appoints Steve Bratspies to Board
• Neutral Sentiment: Pizza Hut is using a football-themed branding promotion ahead of the NFL season. The marketing effort could increase near-term visibility, but it comes as Yum! advances the multibillion-dollar sale of the chain, making the strategic implications more important than the promotion itself. Pizza Hut Branding Change
• Negative Sentiment: Shares faced pressure after Yum! announced a new chief executive officer. Although a leadership change could bring fresh momentum, investors may be concerned about execution risk and the direction of the company during the transition. Yum! Brands Slides on Naming New CEO
• Negative Sentiment: An insider reportedly reduced a Yum! Brands equity stake by 28%, while executive share withholding related to restricted-stock-unit vesting was also disclosed. These transactions are not necessarily signals of deteriorating fundamentals, but they can weigh on sentiment. Yum! Brands Insider Sale
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! investors. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty to the stock. Pomerantz Investor Investigation

Insider Transactions at Yum! Brands

In other news, VP David Eric Russell sold 7,961 shares of the company’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $153.15, for a total transaction of $1,219,227.15. Following the completion of the transaction, the vice president directly owned 11,960 shares of the company’s stock, valued at $1,831,674. This represents a 39.96% decrease in their ownership of the stock. The transaction was disclosed in a 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. Also, CEO Scott Mezvinsky sold 268 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $153.15, for a total value of $41,044.20. Following the transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 18,549 shares of company stock worth $2,890,168. 0.14% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Yum! Brands

Several institutional investors have recently bought and sold shares of YUM. Steph & Co. raised 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 purchasing an additional 86 shares during the last quarter. Edmond DE Rothschild Holding S.A. bought a new stake in shares of Yum! Brands in the second quarter worth $27,000. Kelleher Financial Advisors acquired a new position in Yum! Brands during the second quarter worth $29,000. MV Capital Management Inc. acquired a new position in Yum! Brands during the fourth quarter worth $28,000. Finally, Manning & Napier Advisors LLC bought a new position in Yum! Brands in the first quarter valued at $28,000. Institutional investors own 82.37% of the company’s stock.

Yum! Brands Price Performance

Shares of Yum! Brands stock opened at $153.31 on Friday. The company has a market capitalization of $41.84 billion, a P/E ratio of 19.28, a price-to-earnings-growth ratio of 2.48 and a beta of 0.55. The business has a 50-day moving average of $153.43 and a two-hundred day moving average of $155.98. Yum! Brands has a 1 year low of $137.33 and a 1 year high of $170.14.

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

Yum! Brands declared that its board has initiated a share buyback program on Tuesday, June 16th that permits the company to buyback $4.00 billion in shares. This buyback authorization permits the restaurant operator to reacquire up to 9.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management 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.