Key Points
- CEO Scott Mezvinsky sold 261 Yum! Brands shares on June 1 at an average price of $148.14, trimming his holdings by about 35%. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
- Yum! Brands most recent quarterly results topped expectations, with EPS of $1.50 versus $1.39 expected and revenue of $2.06 billion, up 15.2% year over year. The company also continued its dividend, declaring a $0.75 quarterly payout.
- Wall Street remains cautiously positive on YUM, with an average rating of “Moderate Buy” and a consensus price target of $175.89. Analysts cited include BMO, Citigroup, Barclays, Deutsche Bank, and Evercore.
Yum! Brands, Inc. (NYSE:YUM - Get Free Report) CEO Scott Mezvinsky sold 261 shares of Yum! Brands stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $148.14, for a total transaction of $38,664.54. Following the completion of the sale, the chief executive officer owned 483 shares of the company's stock, valued at $71,551.62. This trade represents a 35.08% decrease in their ownership of the stock. The transaction was disclosed in a legal 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.
Scott Mezvinsky also recently made the following trade(s):
- On Friday, May 1st, Scott Mezvinsky sold 277 shares of Yum! Brands stock. The shares were sold at an average price of $160.48, for a total transaction of $44,452.96.
Yum! Brands Stock Down 0.6%
NYSE YUM opened at $146.57 on Wednesday. The stock has a market capitalization of $40.40 billion, a PE ratio of 23.64, a price-to-earnings-growth ratio of 1.88 and a beta of 0.57. The company has a 50 day moving average price of $156.11 and a two-hundred day moving average price of $155.66. Yum! Brands, Inc. has a 12-month low of $137.33 and a 12-month high of $169.39.
Yum! Brands (NYSE:YUM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $1.50 earnings per share for the quarter, topping 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 previous year, the company earned $1.30 earnings per share. Yum! Brands's revenue for the quarter was up 15.2% on a year-over-year basis. As a group, equities analysts anticipate that Yum! Brands, Inc. will post 6.77 EPS for the current year.
Yum! Brands Dividend Announcement
The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Wednesday, May 27th will be paid 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 is Wednesday, May 27th. Yum! Brands's payout ratio is presently 48.39%.
Wall Street Analysts Forecast Growth
A number of analysts have recently weighed in on YUM shares. BMO Capital Markets restated a "market perform" rating and issued a $168.00 price objective on shares of Yum! Brands in a research note on Monday, May 4th. Citigroup boosted their price objective on shares of Yum! Brands from $174.00 to $175.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Barclays set a $185.00 price objective on shares of Yum! Brands and gave the stock an "overweight" rating in a research note on Thursday, February 5th. Deutsche Bank Aktiengesellschaft set a $177.00 price objective on shares of Yum! Brands in a research note on Thursday, April 30th. Finally, Evercore reiterated an "outperform" rating and set a $190.00 target price on shares of Yum! Brands in a research note on Friday, February 13th. Thirteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $175.89.
Check Out Our Latest Analysis on Yum! Brands
Hedge Funds Weigh In On Yum! Brands
Several large investors have recently bought and sold shares of YUM. Brighton Jones LLC raised its stake in Yum! Brands by 8.0% during 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 during the last quarter. First Trust Advisors LP raised its stake in Yum! Brands by 124.5% during the 2nd quarter. First Trust Advisors LP now owns 151,316 shares of the restaurant operator's stock valued at $22,422,000 after purchasing an additional 83,916 shares during the last quarter. CIBC Asset Management Inc raised its stake in Yum! Brands by 10.0% during the 2nd quarter. CIBC Asset Management Inc now owns 117,824 shares of the restaurant operator's stock valued at $17,447,000 after purchasing an additional 10,755 shares during the last quarter. Treasurer of the State of North Carolina raised its stake in Yum! Brands by 1.0% during the 2nd 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 purchasing an additional 1,256 shares during the last quarter. Finally, HUB Investment Partners LLC raised its stake in Yum! Brands by 59.1% during the 2nd quarter. HUB Investment Partners LLC now owns 2,319 shares of the restaurant operator's stock valued at $344,000 after purchasing an additional 861 shares during the last quarter. 82.37% of the stock is currently owned by institutional investors and hedge funds.
Key Yum! Brands News
Here are the key news stories impacting Yum! Brands this week:
- Positive Sentiment: Yum! Brands announced a leadership transition in its COO role, with Tracy Skeans set to retire after more than 25 years and remain as an advisor through year-end. The orderly transition may reassure investors that the company is managing succession smoothly. Yum! Brands Announces Retirement of Tracy Skeans, Chief Operating Officer and Chief People & Culture Officer
- Positive Sentiment: Reports that Yum! Brands may sell Pizza Hut to LongRange Capital have fueled a “sum-of-the-parts” story, potentially allowing the company to focus on higher-growth, higher-margin brands like KFC and Taco Bell and use proceeds to reduce debt. Yum Brands in talks to sell Pizza Hut to private equity firm: report
- Neutral Sentiment: KFC announced a Supergirl-themed summer promotion with limited-edition meals, sauces, and collectibles. This could support near-term traffic, but it is too early to tell whether the campaign will materially move results. Supergirl Summer Takes Off at KFC® with New Supergirl Ultimate Meal, Character-Inspired Sauce Showdowns and Must-Have Limited-Edition Collectibles
- Neutral Sentiment: Jim Cramer included Yum! Brands among stocks he likes for diversification outside the AI trade, which may help keep YUM on investors’ radar but does not change fundamentals by itself. Jim Cramer says look to buy these 5 stocks outside the AI trade for diversification
- Negative Sentiment: Recent insider filings showed CEO stock sales under pre-arranged 10b5-1 plans. While routine, insider selling can still add pressure on sentiment when the stock is already under review. SEC Form 4 filing
About Yum! Brands
(
Get Free Report)
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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