Evercore ISI reaffirmed their buy rating on shares of Yum! Brands (NYSE:YUM) in a research report report published on Tuesday morning, AnalystRatings.com reports. They currently have a $130.00 price objective on the restaurant operator’s stock.
“We believe David’s financial and institutional knowledge made him a strong right-hand to Mr. Creed during a period of rapid change. During his time as CFO, Mr. Gibbs has had a strong role in the transformation of 77% franchised business in 2015 (pre- Yum! China spin) to a 98% franchised mix today. In addition, the company has been adept at reducing overhead (from 3.4% of system sales in 2015 to ~1.7% in 2019) while signing deals to bolster growth or capabilities. Lastly, we believe David has had a hand in making acquisitions or alliances with technology companies (GrubHub, QuikOrder), consumer insights consultants (Collider Labs), and brands (Telepizza) to bolster franchisee support or accelerate growth. In addition, Yum! Brands is on track to deliver on its targets of >$3.75 in EPS (from ~$2.20 in 2015) and 100% FCF conversion (from ~85% in 2015).”,” Evercore ISI’s analyst wrote.
Other analysts also recently issued reports about the stock. Stifel Nicolaus boosted their target price on shares of Yum! Brands from $100.00 to $110.00 and gave the stock a hold rating in a report on Friday, August 2nd. BMO Capital Markets boosted their target price on shares of Yum! Brands to $112.00 and gave the stock a market perform rating in a report on Friday, August 2nd. They noted that the move was a valuation call. Tigress Financial reiterated a buy rating on shares of Yum! Brands in a report on Friday, July 12th. Robert W. Baird reiterated an outperform rating and issued a $112.00 target price on shares of Yum! Brands in a report on Monday, April 29th. Finally, Morgan Stanley boosted their target price on shares of Yum! Brands from $106.00 to $112.00 and gave the stock an equal weight rating in a report on Friday, August 2nd. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and seven have issued a buy rating to the company. The company currently has a consensus rating of Hold and an average price target of $110.65.
NYSE YUM opened at $115.62 on Tuesday. The company’s 50 day simple moving average is $113.39 and its 200 day simple moving average is $103.93. Yum! Brands has a 12 month low of $83.39 and a 12 month high of $119.72. The company has a market capitalization of $35.18 billion, a P/E ratio of 36.47, a PEG ratio of 2.47 and a beta of 0.53.
Yum! Brands (NYSE:YUM) last released its earnings results on Thursday, August 1st. The restaurant operator reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.87 by $0.06. Yum! Brands had a net margin of 24.29% and a negative return on equity of 13.02%. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the previous year, the firm earned $0.82 EPS. The business’s revenue for the quarter was down 4.2% on a year-over-year basis. As a group, analysts forecast that Yum! Brands will post 3.87 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, September 6th. Stockholders of record on Monday, August 19th will be issued a dividend of $0.42 per share. The ex-dividend date is Friday, August 16th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.45%. Yum! Brands’s dividend payout ratio is currently 53.00%.
In other news, insider Tracy L. Skeans sold 6,049 shares of the business’s stock in a transaction that occurred on Monday, June 17th. The shares were sold at an average price of $110.00, for a total transaction of $665,390.00. Following the sale, the insider now owns 9,106 shares in the company, valued at $1,001,660. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, General Counsel Scott Catlett sold 1,015 shares of the business’s stock in a transaction that occurred on Wednesday, August 14th. The shares were sold at an average price of $116.63, for a total transaction of $118,379.45. Following the sale, the general counsel now owns 5,376 shares in the company, valued at approximately $627,002.88. The disclosure for this sale can be found here. Insiders have sold 56,755 shares of company stock worth $6,072,849 in the last 90 days. 0.67% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP increased its holdings in Yum! Brands by 1.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 755,600 shares of the restaurant operator’s stock worth $69,456,000 after purchasing an additional 11,988 shares during the period. Geode Capital Management LLC increased its holdings in Yum! Brands by 7.2% during the 4th quarter. Geode Capital Management LLC now owns 3,883,831 shares of the restaurant operator’s stock worth $356,348,000 after purchasing an additional 260,681 shares during the period. Mercer Global Advisors Inc. ADV purchased a new position in Yum! Brands during the 1st quarter worth $713,000. Raymond James Trust N.A. increased its holdings in Yum! Brands by 11.2% during the 1st quarter. Raymond James Trust N.A. now owns 12,611 shares of the restaurant operator’s stock worth $1,259,000 after purchasing an additional 1,268 shares during the period. Finally, Quantitative Systematic Strategies LLC increased its holdings in Yum! Brands by 200.0% during the 1st quarter. Quantitative Systematic Strategies LLC now owns 13,318 shares of the restaurant operator’s stock worth $1,329,000 after purchasing an additional 8,879 shares during the period. 74.97% of the stock is currently owned by hedge funds and other institutional investors.
About Yum! Brands
YUM! Brands, Inc, together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates in three segments: the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company operates restaurants under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories.
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