Yum Brands Inc. (YUM) Stock Rating Upgraded by Zacks Investment Research
Yum Brands Inc. (NYSE:YUM) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Yum! Brands has performed relatively well in the domestic and many key international markets. The company’s efforts to capitalize on high-growth emerging markets are also encouraging. Notably, the China division comps were down 1% in the quarter, suggesting that a complete recovery will take more time. The division had posted flat comps in Q2 after recording positive comps in the preceding three quarters. Even so, management raised its profit outlook for the third time this year, mainly due to continued strength in its business outside China and the current profitability trends there despite headwinds related to sales. Moreover, efforts to revive the U.S. business along with various sales and digital initiatives bode well. Also, the company is looking to drive growth through its strategic transformation plan post China business separation. However, a slowdown in some key emerging markets and negative currency translation raises concerns.”
Several other research analysts have also commented on YUM. Robert W. Baird reissued a “neutral” rating and issued a $92.00 price target on shares of Yum Brands in a research report on Wednesday, September 7th. Oppenheimer Holdings Inc. reissued an “outperform” rating and issued a $97.00 price target (up from $96.00) on shares of Yum Brands in a research report on Sunday, October 2nd. Deutsche Bank AG reduced their price target on Yum Brands from $88.00 to $65.00 and set a “hold” rating for the company in a research report on Tuesday, November 1st. Wells Fargo & Co. reissued a “market weight” rating and issued a $87.00 price target on shares of Yum Brands in a research report on Sunday, October 2nd. Finally, Edward Jones reissued a “hold” rating on shares of Yum Brands in a research report on Wednesday, October 5th. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating, ten have given a buy rating and two have given a strong buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $91.72.
Yum Brands (NYSE:YUM) opened at 63.39 on Tuesday. Yum Brands has a 12 month low of $46.43 and a 12 month high of $66.13. The firm has a 50-day moving average price of $61.99 and a 200 day moving average price of $62.27. The stock has a market capitalization of $23.26 billion, a PE ratio of 16.31 and a beta of 0.78.
Yum Brands (NYSE:YUM) last issued its earnings results on Wednesday, October 5th. The restaurant operator reported $1.09 earnings per share for the quarter, missing the Thomson Reuters’ 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 firm earned $3.32 billion during the quarter. During the same period last year, the company earned $1.00 EPS. The company’s revenue for the quarter was down 3.2% on a year-over-year basis. Equities analysts anticipate that Yum Brands will post $2.40 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, November 4th. Shareholders of record on Wednesday, October 19th were given a dividend of $0.51 per share. The ex-dividend date was Monday, October 17th. This represents a $2.04 dividend on an annualized basis and a yield of 3.22%. This is an increase from Yum Brands’s previous quarterly dividend of $0.46. Yum Brands’s dividend payout ratio is currently 51.91%.
In other news, CFO David W. Gibbs sold 14,487 shares of the firm’s stock in a transaction that occurred on Thursday, October 13th. The stock was sold at an average price of $89.92, for a total value of $1,302,671.04. Following the transaction, the chief financial officer now owns 48,261 shares in the company, valued at $4,339,629.12. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Roger G. Eaton sold 53,518 shares of the firm’s stock in a transaction that occurred on Friday, September 2nd. The shares were sold at an average price of $91.72, for a total value of $4,908,670.96. Following the completion of the transaction, the chief executive officer now owns 245,736 shares in the company, valued at approximately $22,538,905.92. The disclosure for this sale can be found here. Company insiders own 7.38% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. D.A. Davidson & CO. increased its position in Yum Brands by 6.1% in the third quarter. D.A. Davidson & CO. now owns 58,715 shares of the restaurant operator’s stock valued at $5,329,000 after buying an additional 3,394 shares during the period. Whalerock Point Partners LLC purchased a new position in Yum Brands during the third quarter valued at $623,000. MEMBERS Trust Co increased its position in Yum Brands by 3.5% in the third quarter. MEMBERS Trust Co now owns 5,253 shares of the restaurant operator’s stock valued at $477,000 after buying an additional 180 shares during the period. Piedmont Investment Advisors LLC purchased a new position in Yum Brands during the third quarter valued at $7,216,000. Finally, Price T Rowe Associates Inc. MD increased its position in Yum Brands by 4.6% in the third quarter. Price T Rowe Associates Inc. MD now owns 1,728,221 shares of the restaurant operator’s stock valued at $156,940,000 after buying an additional 76,342 shares during the period. Institutional investors and hedge funds own 73.26% of the company’s stock.
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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