Key Points
- CEO Aaron Powell sold 6,001 Yum! Brands shares on July 1 at an average price of $160.42, totaling about $962,680. After the transaction, he still owned 12,003 shares, and the sale was made under a pre-arranged 10b5-1 plan.
- Yum! Brands reported stronger-than-expected quarterly results in late April, with EPS of $1.50 versus the $1.39 estimate and revenue of $2.06 billion, up 15.2% year over year. Analysts now expect full-year EPS of 6.75.
- The company also boosted shareholder returns by paying a $0.75 quarterly dividend and authorizing a $4.0 billion share repurchase program, which could cover up to 9.4% of its stock.
Yum! Brands, Inc. (NYSE:YUM - Get Free Report) CEO Christopher Lee Turner sold 250 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $160.42, for a total value of $40,105.00. Following the sale, the chief executive officer directly owned 64,032 shares of the company's stock, valued at approximately $10,272,013.44. The trade was a 0.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Christopher Lee Turner also recently made the following trade(s):
- On Monday, June 1st, Christopher Lee Turner sold 270 shares of Yum! Brands stock. The shares were sold at an average price of $148.14, for a total transaction of $39,997.80.
- On Friday, May 1st, Christopher Lee Turner sold 250 shares of Yum! Brands stock. The shares were sold at an average price of $160.48, for a total value of $40,120.00.
Yum! Brands Stock Performance
NYSE YUM opened at $161.46 on Thursday. Yum! Brands, Inc. has a 52 week low of $137.33 and a 52 week high of $169.39. The stock has a market capitalization of $44.50 billion, a price-to-earnings ratio of 26.04, a PEG ratio of 2.04 and a beta of 0.56. The stock's 50 day moving average price is $153.68 and its two-hundred day moving average price is $156.29.
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, topping the consensus estimate 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 quarter in the prior year, the company posted $1.30 earnings per share. The firm's revenue was up 15.2% on a year-over-year basis. On average, equities research analysts forecast that Yum! Brands, Inc. will post 6.75 EPS for the current year.
Yum! Brands Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Wednesday, May 27th were paid a dividend of $0.75 per share. The ex-dividend date was Wednesday, May 27th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.9%. Yum! Brands's dividend payout ratio is currently 48.39%.
Yum! Brands declared that its board has authorized a stock repurchase plan on Tuesday, June 16th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the restaurant operator to repurchase up to 9.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its shares are undervalued.
Institutional Trading of Yum! Brands
A number of institutional investors and hedge funds have recently bought and sold shares of YUM. Capital International Investors increased its stake in shares of Yum! Brands by 20.0% in the fourth quarter. Capital International Investors now owns 19,419,826 shares of the restaurant operator's stock valued at $2,938,139,000 after buying an additional 3,240,190 shares during the period. State Street Corp increased its stake in shares of Yum! Brands by 1.0% in the 4th quarter. State Street Corp now owns 13,164,814 shares of the restaurant operator's stock valued at $1,991,573,000 after acquiring an additional 124,720 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Yum! Brands by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 8,800,382 shares of the restaurant operator's stock valued at $1,334,427,000 after purchasing an additional 121,304 shares during the period. Norges Bank acquired a new position in Yum! Brands during the 4th quarter worth approximately $706,799,000. Finally, Morgan Stanley raised its position in shares of Yum! Brands by 2.4% during the fourth quarter. Morgan Stanley now owns 4,471,127 shares of the restaurant operator's stock worth $676,392,000 after purchasing an additional 104,512 shares during the period. 82.37% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
A number of research firms have recently issued reports on YUM. UBS Group reaffirmed a "buy" rating on shares of Yum! Brands in a research report on Thursday, June 18th. Wells Fargo & Company increased their target price on shares of Yum! Brands from $160.00 to $165.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 30th. TD Cowen reissued a "buy" rating and set a $180.00 target price on shares of Yum! Brands in a report on Tuesday, June 16th. Morgan Stanley raised shares of Yum! Brands from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $180.00 to $185.00 in a research note on Wednesday, June 3rd. Finally, BMO Capital Markets reissued a "market perform" rating and set a $168.00 target price on shares of Yum! Brands in a research note on Monday, May 4th. Twelve analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $176.12.
View Our Latest Stock Report on Yum! Brands
Yum! Brands Company Profile
(
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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