Yum! Brands, Inc. (NYSE:YUM - Get Free Report) VP David Eric Russell sold 7,961 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $153.15, for a total transaction 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. This trade represents a 39.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Yum! Brands Price Performance
Shares of YUM stock opened at $147.78 on Wednesday. Yum! Brands, Inc. has a one year low of $137.33 and a one year high of $170.14. The company's fifty day moving average price is $153.67 and its 200-day moving average price is $156.59. The company has a market capitalization of $40.73 billion, a price-to-earnings ratio of 18.59, a PEG ratio of 1.95 and a beta of 0.55.
Yum! Brands (NYSE:YUM - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.58 by $0.04. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.The business had revenue of $2.17 billion during the quarter, compared to analyst estimates of $2.18 billion. During the same quarter in the prior year, the business posted $1.44 EPS. Yum! Brands's revenue for the quarter was up 12.2% compared to the same quarter last year. Equities research analysts expect that Yum! Brands, Inc. will post 6.6 earnings per share for the current fiscal year.
Yum! Brands Dividend Announcement
The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Wednesday, May 27th were paid a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 2.0%. The ex-dividend date was Wednesday, May 27th. Yum! Brands's dividend payout ratio is presently 37.74%.
Yum! Brands announced that its Board of Directors has initiated a share repurchase plan on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 9.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.
More Yum! Brands News
Here are the key news stories impacting Yum! Brands this week:
- Positive Sentiment: Taco Bell reported strong digital-sales momentum tied to its loyalty program and plans to launch a redesigned app in the third quarter. Better engagement and ordering frequency could support a recovery in traffic and sales. Taco Bell credits its loyalty program for digital sales growth
- Positive Sentiment: Analysts highlighted YUM’s nearly $9 billion digital ecosystem across ordering, loyalty and restaurant operations. The platform offers long-term growth potential, although investors remain cautious about execution risk. YUM’s digital growth engine
- Positive Sentiment: JPMorgan lowered its price target from $170 to $160 but maintained an “overweight” rating, implying substantial potential upside from the referenced trading level. The target cut nevertheless signals more measured expectations. JPMorgan rating and price target report
- Neutral Sentiment: Commentary on a potential $2.7 billion Pizza Hut exit suggests that separating the brand could simplify YUM’s portfolio, reduce debt and direct resources toward KFC and Taco Bell. However, the reports describe a strategic scenario rather than confirming a completed transaction. YUM’s Pizza Hut exit analysis
- Neutral Sentiment: Executives disclosed modest stock sales conducted under pre-arranged Rule 10b5-1 plans, including sales by CEO Christopher Lee Turner and other company executives. The transactions are unlikely to represent a strong discretionary bearish signal. SEC insider transaction filing
- Negative Sentiment: Reports that Michigan health officials contacted Yum! about the Taco Bell cyclospora outbreak before a public alert have intensified concerns about customer traffic, sales damage and potential brand-reputation costs. Rising reported fatalities are adding to investor anxiety. Michigan cyclospora alert involving Taco Bell
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC raised its stake in shares of Yum! Brands by 5.9% in the fourth quarter. Hsbc Holdings PLC now owns 569,676 shares of the restaurant operator's stock valued at $86,197,000 after acquiring an additional 31,836 shares during the period. Bleakley Financial Group LLC purchased a new position in shares of Yum! Brands during the 1st quarter worth about $1,589,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in Yum! Brands by 5.4% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 584,953 shares of the restaurant operator's stock valued at $88,030,000 after purchasing an additional 30,075 shares during the last quarter. AustralianSuper Pty Ltd bought a new position in Yum! Brands during the 4th quarter valued at about $1,264,000. Finally, Ethos Capital Management Inc. purchased a new stake in Yum! Brands in the 4th quarter worth about $1,372,000. Hedge funds and other institutional investors own 82.37% of the company's stock.
Analyst Upgrades and Downgrades
A number of analysts have issued reports on the stock. BMO Capital Markets reiterated a "market perform" rating and issued a $168.00 price target on shares of Yum! Brands in a report on Monday, May 4th. JPMorgan Chase & Co. cut their price objective on Yum! Brands from $170.00 to $160.00 and set an "overweight" rating for the company in a research report on Tuesday. Citigroup lifted their target price on Yum! Brands from $175.00 to $178.00 and gave the stock a "neutral" rating in a report on Sunday, July 12th. Royal Bank Of Canada boosted their target price on Yum! Brands from $165.00 to $170.00 and gave the stock a "sector perform" rating in a research report on Friday. Finally, Wells Fargo & Company raised their price target on Yum! Brands from $160.00 to $165.00 and gave the company an "equal weight" rating in a report on Thursday, April 30th. Eleven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $174.31.
Get Our Latest Stock Report on YUM
About Yum! Brands
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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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