Magellan Asset Management Ltd Invests $57.36 Million in Yum! Brands, Inc. $YUM

Magellan Asset Management Ltd purchased a new position in shares of Yum! Brands, Inc. (NYSE:YUM) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 358,827 shares of the restaurant operator’s stock, valued at approximately $57,362,000. Yum! Brands accounts for 1.3% of Magellan Asset Management Ltd’s portfolio, making the stock its 22nd biggest holding.

A number of other hedge funds have also recently added to or reduced their stakes in YUM. Brighton Jones LLC boosted its holdings in Yum! Brands by 8.0% in the 4th quarter. Brighton Jones LLC now owns 7,861 shares of the restaurant operator’s stock valued at $1,055,000 after purchasing an additional 583 shares in the last quarter. First Trust Advisors LP raised its stake in shares of Yum! Brands by 124.5% during the 2nd quarter. First Trust Advisors LP now owns 151,316 shares of the restaurant operator’s stock worth $22,422,000 after buying an additional 83,916 shares in the last quarter. CIBC Asset Management Inc lifted its holdings in shares of Yum! Brands by 10.0% in the 2nd quarter. CIBC Asset Management Inc now owns 117,824 shares of the restaurant operator’s stock valued at $17,447,000 after buying an additional 10,755 shares during the period. Treasurer of the State of North Carolina boosted its stake in shares of Yum! Brands by 1.0% in the second quarter. Treasurer of the State of North Carolina now owns 130,205 shares of the restaurant operator’s stock valued at $19,294,000 after buying an additional 1,256 shares in the last quarter. Finally, HUB Investment Partners LLC boosted its stake in shares of Yum! Brands by 59.1% in the second quarter. HUB Investment Partners LLC now owns 2,319 shares of the restaurant operator’s stock valued at $344,000 after buying an additional 861 shares in the last quarter. Institutional investors and hedge funds own 82.37% of the company’s stock.

Analyst Ratings Changes

A number of research firms have commented on YUM. UBS Group reissued a “buy” rating on shares of Yum! Brands in a report on Thursday, June 18th. Citigroup increased their price target on shares of Yum! Brands from $175.00 to $178.00 and gave the company a “neutral” rating in a report on Sunday, July 12th. Weiss Ratings cut shares of Yum! Brands from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 28th. Argus decreased their price objective on shares of Yum! Brands from $185.00 to $180.00 and set a “buy” rating on the stock in a report on Monday, August 17th. Finally, Evercore restated an “outperform” rating on shares of Yum! Brands in a research report on Tuesday, June 16th. Twelve investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $174.65.

Insider Buying and Selling at Yum! Brands

In other Yum! Brands news, VP David Eric Russell sold 7,961 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 value of $1,219,227.15. Following the completion of the sale, the vice president directly owned 11,960 shares of the company’s stock, valued at approximately $1,831,674. The trade was a 39.96% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aaron Powell sold 6,001 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $160.42, for a total value of $962,680.42. Following the transaction, the chief executive officer directly owned 12,003 shares in the company, valued at approximately $1,925,521.26. This represents a 33.33% decrease in their position. 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 quarter, insiders sold 18,549 shares of company stock valued at $2,890,168. Corporate insiders own 0.14% of the company’s stock.

Yum! Brands Trading Up 0.2%

Shares of NYSE YUM opened at $153.31 on Monday. The stock has a market cap of $41.84 billion, a price-to-earnings ratio of 19.28, a PEG ratio of 2.48 and a beta of 0.55. The company’s 50-day moving average price is $153.43 and its 200 day moving average price is $155.98. Yum! Brands, Inc. has a 52 week low of $137.33 and a 52 week high of $170.14.

Yum! Brands (NYSE:YUM) last announced its quarterly 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. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The company had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter in the prior year, the firm earned $1.44 earnings per share. The company’s revenue for the quarter was up 12.2% compared to the same quarter last year. As a group, research analysts expect that Yum! Brands, Inc. will post 6.42 earnings per share for the current year.

Yum! Brands announced that its Board of Directors has initiated a stock buyback plan on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the restaurant operator to purchase up to 9.4% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Key Yum! Brands News

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

Yum! Brands 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.