Equities Analysts Set Expectations for Yum Brands Inc.’s FY2016 Earnings (YUM)
Yum Brands Inc. (NYSE:YUM) – Equities researchers at Credit Agricole SA raised their FY2016 earnings estimates for shares of Yum Brands in a note issued to investors on Tuesday. Credit Agricole SA analyst J. Scott now anticipates that the brokerage will post earnings of $3.71 per share for the year, up from their prior estimate of $3.64. Credit Agricole SA currently has a “Underperform” rating and a $82.00 price target on the stock. Credit Agricole SA also issued estimates for Yum Brands’ FY2017 earnings at $4.07 EPS and FY2018 earnings at $4.23 EPS.
Yum Brands (NYSE:YUM) last posted its quarterly earnings data on Wednesday, October 5th. The restaurant operator reported $1.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.10 by $0.01. Yum Brands had a negative return on equity of 589.18% and a net margin of 12.62%. The company had revenue of $3.32 billion for the quarter. During the same quarter last year, the firm posted $1.00 EPS. The business’s revenue for the quarter was down 3.2% on a year-over-year basis.
A number of other research analysts also recently weighed in on YUM. Credit Suisse Group AG reaffirmed a “hold” rating on shares of Yum Brands in a research report on Friday, June 17th. Vetr downgraded shares of Yum Brands from a “buy” rating to a “hold” rating and set a $86.90 target price for the company. in a research report on Monday, June 20th. Nomura reaffirmed a “buy” rating and issued a $95.00 target price (up previously from $92.00) on shares of Yum Brands in a research report on Wednesday, June 22nd. Deutsche Bank AG reaffirmed a “hold” rating and issued a $83.00 target price (up previously from $81.00) on shares of Yum Brands in a research report on Monday, July 11th. Finally, Royal Bank Of Canada reaffirmed a “buy” rating on shares of Yum Brands in a research report on Monday, July 11th. Four investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $92.46.
Yum Brands (NYSE:YUM) opened at 89.18 on Thursday. Yum Brands has a 12-month low of $64.58 and a 12-month high of $91.99. The stock’s 50 day moving average is $89.31 and its 200 day moving average is $85.54. The company has a market cap of $33.53 billion, a P/E ratio of 26.88 and a beta of 0.76.
A number of large investors have recently bought and sold shares of YUM. Virginia Retirement System acquired a new stake in Yum Brands during the first quarter valued at approximately $572,000. Maryland Capital Management increased its stake in Yum Brands by 2.7% in the first quarter. Maryland Capital Management now owns 249,358 shares of the restaurant operator’s stock valued at $20,410,000 after buying an additional 6,658 shares in the last quarter. BB&T Securities LLC increased its stake in Yum Brands by 125.9% in the first quarter. BB&T Securities LLC now owns 103,091 shares of the restaurant operator’s stock valued at $8,438,000 after buying an additional 57,461 shares in the last quarter. Meeder Asset Management Inc. increased its stake in Yum Brands by 56.2% in the first quarter. Meeder Asset Management Inc. now owns 8,467 shares of the restaurant operator’s stock valued at $693,000 after buying an additional 3,048 shares in the last quarter. Finally, Edmond DE Rothschild Holding S.A. increased its stake in Yum Brands by 19,172.0% in the first quarter. Edmond DE Rothschild Holding S.A. now owns 38,544 shares of the restaurant operator’s stock valued at $3,155,000 after buying an additional 38,344 shares in the last quarter. Institutional investors and hedge funds own 76.14% of the company’s stock.
In related news, CFO David W. Gibbs sold 14,487 shares of Yum Brands stock in a transaction that occurred on Thursday, October 13th. The shares were sold at an average price of $89.92, for a total transaction of $1,302,671.04. Following the sale, the chief financial officer now directly owns 48,261 shares in the company, valued at approximately $4,339,629.12. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Muktesh Pant sold 91,228 shares of Yum Brands stock in a transaction that occurred on Friday, July 22nd. The stock was sold at an average price of $89.94, for a total transaction of $8,205,046.32. Following the sale, the chief executive officer now owns 62,660 shares in the company, valued at $5,635,640.40. The disclosure for this sale can be found here. Corporate insiders own 7.38% of the company’s stock.
The firm also recently announced a quarterly dividend, which will be paid on Friday, November 4th. Investors of record on Wednesday, October 19th will be given a dividend of $0.51 per share. The ex-dividend date is Monday, October 17th. This is an increase from Yum Brands’s previous quarterly dividend of $0.46. This represents a $2.04 annualized dividend and a yield of 2.29%. Yum Brands’s dividend payout ratio (DPR) is currently 46.82%.
About Yum Brands
YUM! Brands, Inc (YUM) is engaged in restaurant business. The Company develops, operates, franchises and licenses an across the world system of restaurants, which prepare, package and sell a menu of food items, primarily through the three concepts of KFC, Pizza Hut and Taco Bell (the Concepts). YUM operates through four segments: YUM China (China Division), which includes all operations in mainland China; The KFC Division, which includes all operations of the KFC concept outside of China Division; The Pizza Hut Division, which includes all operations of the Pizza Hut concept outside of China Division, and the Taco Bell Division, which includes all operations of the Taco Bell concept.
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