Key Points
- Yum! Brands COO Tracy Skeans sold 1,837 shares on May 15 at an average price of $152, totaling about $279,224. After the transaction, Skeans still held 3,497 shares, and the sale was made under a pre-arranged Rule 10b5-1 plan.
- The company recently posted solid quarterly results, beating earnings and revenue expectations with $1.50 EPS and $2.06 billion in revenue. Revenue rose 15.2% year over year, and analysts expect full-year EPS of 6.77.
- Yum! also declared a quarterly dividend of $0.75 per share, payable June 12, implying a 2.0% annualized yield. Analysts remain broadly constructive, with a Moderate Buy consensus and a target price of $176.22.
Yum! Brands, Inc. (NYSE:YUM - Get Free Report) COO Tracy Skeans sold 1,837 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $152.00, for a total transaction of $279,224.00. Following the completion of the sale, the chief operating officer directly owned 3,497 shares of the company's stock, valued at approximately $531,544. This trade represents a 34.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Yum! Brands Price Performance
Shares of YUM opened at $150.25 on Friday. Yum! Brands, Inc. has a 1-year low of $137.33 and a 1-year high of $169.39. The stock has a market cap of $41.41 billion, a PE ratio of 24.23, a price-to-earnings-growth ratio of 1.92 and a beta of 0.61. The firm has a fifty day moving average price of $157.70 and a 200 day moving average price of $155.00.
Yum! Brands (NYSE:YUM - Get Free Report) last announced its earnings results on Wednesday, April 29th. The restaurant operator reported $1.50 EPS for the quarter, beating analysts' consensus estimates of $1.39 by $0.11. Yum! Brands had a net margin of 20.48% and a negative return on equity of 23.51%. The business had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.04 billion. During the same period in the prior year, the company earned $1.30 earnings per share. The business's revenue was up 15.2% compared to the same quarter last year. As a group, equities analysts expect that Yum! Brands, Inc. will post 6.77 EPS for the current fiscal year.
Yum! Brands Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Wednesday, May 27th will be issued a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Wednesday, May 27th. Yum! Brands's dividend payout ratio is presently 48.39%.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently made changes to their positions in the company. Steph & Co. increased its stake in shares of Yum! Brands by 107.5% during the first quarter. Steph & Co. now owns 166 shares of the restaurant operator's stock worth $26,000 after acquiring an additional 86 shares during the period. MV Capital Management Inc. acquired a new position in shares of Yum! Brands during the fourth quarter worth about $28,000. Manning & Napier Advisors LLC acquired a new position in shares of Yum! Brands during the first quarter worth about $28,000. Wiser Advisor Group LLC acquired a new position in shares of Yum! Brands during the third quarter worth about $28,000. Finally, Community Bank N.A. acquired a new position in shares of Yum! Brands during the third quarter worth about $29,000. 82.37% of the stock is currently owned by institutional investors and hedge funds.
More Yum! Brands News
Here are the key news stories impacting Yum! Brands this week:
- Positive Sentiment: Zacks Research raised multiple earnings estimates for Yum! Brands, including FY2026, FY2027, and FY2028, signaling improved profit expectations and a potentially stronger forward outlook for the restaurant operator.
- Positive Sentiment: The company declared a quarterly dividend of $0.75 per share, reinforcing its capital-return profile and offering income support for shareholders.
- Positive Sentiment: Yum! Brands’ India franchisee reported stronger operating trends, including a narrower loss and higher profit in FY24, which may suggest solid underlying demand for KFC and related brands in key international markets. Article: Yum Brands' India franchisee posts narrower loss on KFC sales upswing
- Neutral Sentiment: RestaurantBusiness Online highlighted leadership lessons and brand-building at Yum! Brands, but the piece appears more informational than market-moving. Article: Operator Spotlight – Building Brands Over Time: Leadership Lessons from Yum! Brands
- Neutral Sentiment: MarketWatch noted that Yum! Brands stock underperformed peers, which suggests some near-term relative weakness but does not by itself indicate a major fundamental shift. Article: Yum! Brands Inc. stock underperforms Wednesday when compared to competitors
- Negative Sentiment: COO Tracy L. Skeans sold 1,837 shares in a pre-arranged 10b5-1 transaction, a disclosure that can create a modest headwind for sentiment even though it was not a discretionary sale.
- Negative Sentiment: The pizza restaurant sector has been facing cost and demand pressure, highlighted by another chain’s Chapter 11 filing; while not specific to Yum!, it underscores broader industry caution for restaurant investors.
Wall Street Analyst Weigh In
A number of equities research analysts have recently commented on the stock. UBS Group reaffirmed a "buy" rating and issued a $180.00 target price on shares of Yum! Brands in a report on Monday, February 2nd. TD Cowen upped their target price on shares of Yum! Brands from $180.00 to $186.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Wells Fargo & Company upped their target price on shares of Yum! Brands from $160.00 to $165.00 and gave the company an "equal weight" rating in a report on Thursday, April 30th. JPMorgan Chase & Co. upped their target price on shares of Yum! Brands from $160.00 to $170.00 and gave the company an "overweight" rating in a report on Tuesday, February 24th. Finally, Deutsche Bank Aktiengesellschaft set a $177.00 target price on shares of Yum! Brands in a report on Thursday, April 30th. Twelve investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, Yum! Brands presently has a consensus rating of "Moderate Buy" and a consensus target price of $176.22.
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About Yum! Brands
(
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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.
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