Korea Investment CORP Invests $20.65 Million in Yum! Brands, Inc. $YUM

Korea Investment CORP bought a new position in shares of Yum! Brands, Inc. (NYSE:YUM) during the 2nd quarter, according to its most recent 13F filing with the SEC. The fund bought 129,182 shares of the restaurant operator’s stock, valued at approximately $20,651,000.

Several other hedge funds also recently added to or reduced their stakes in YUM. Brighton Jones LLC increased its holdings in shares of Yum! Brands by 8.0% during the fourth quarter. Brighton Jones LLC now owns 7,861 shares of the restaurant operator’s stock valued at $1,055,000 after acquiring an additional 583 shares in the last quarter. First Trust Advisors LP grew its position 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 worth $22,422,000 after purchasing an additional 83,916 shares during the last quarter. CIBC Asset Management Inc grew its position 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 worth $17,447,000 after purchasing an additional 10,755 shares during the last quarter. Treasurer of the State of North Carolina increased 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 in the last quarter. Finally, HUB Investment Partners LLC increased 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 in the last quarter. 82.37% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Yum! Brands

In other Yum! Brands news, CEO Christopher Lee Turner sold 261 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $153.15, for a total value of $39,972.15. Following the completion of the transaction, the chief executive officer directly owned 63,771 shares of the company’s stock, valued at approximately $9,766,528.65. The trade was a 0.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Eric Russell sold 7,961 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $153.15, for a total value of $1,219,227.15. Following the completion of the sale, the vice president owned 11,960 shares in the company, valued at approximately $1,831,674. This represents a 39.96% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 18,549 shares of company stock valued at $2,890,168. 0.14% of the stock is owned by insiders.

Yum! Brands Price Performance

NYSE YUM opened at $153.31 on Monday. Yum! Brands, Inc. has a 1 year low of $137.33 and a 1 year high of $170.14. The company has a market capitalization of $41.84 billion, a PE ratio of 19.28, a P/E/G ratio of 2.48 and a beta of 0.55. The company has a fifty day moving average of $153.43 and a 200 day moving average of $155.98.

Yum! Brands (NYSE:YUM) last announced its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.58 by $0.04. The company had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.18 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.The firm’s revenue for the quarter was up 12.2% compared to the same quarter last year. During the same period last year, the firm earned $1.44 EPS. Research analysts expect that Yum! Brands, Inc. will post 6.42 earnings per share for the current year.

Yum! Brands announced that its board has approved a stock buyback plan on Tuesday, June 16th that permits the company to buyback $4.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to buy up to 9.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Key Headlines Impacting Yum! Brands

Here are the key news stories impacting Yum! Brands this week:

• Positive Sentiment: Yum! Brands outlined a renewed consumer-growth strategy centered on strengthening brand engagement, digital capabilities, loyalty programs and operational execution across KFC, Taco Bell and Pizza Hut. The emphasis on personalized customer experiences and technology could support sales and franchisee performance. Yum! Brands Reveals New Path for Consumer Growth
• Positive Sentiment: The company appointed former HanesBrands CEO Steve Bratspies to its board, effective August 26. His experience managing global consumer brands and improving operations may add expertise as Yum! pursues growth and evaluates its portfolio. Yum! Brands Appoints Steve Bratspies to Board
• Neutral Sentiment: Pizza Hut is using a football-themed branding promotion ahead of the NFL season. The marketing effort could increase near-term visibility, but it comes as Yum! advances the multibillion-dollar sale of the chain, making the strategic implications more important than the promotion itself. Pizza Hut Branding Change
• Negative Sentiment: Shares faced pressure after Yum! announced a new chief executive officer. Although a leadership change could bring fresh momentum, investors may be concerned about execution risk and the direction of the company during the transition. Yum! Brands Slides on Naming New CEO
• Negative Sentiment: An insider reportedly reduced a Yum! Brands equity stake by 28%, while executive share withholding related to restricted-stock-unit vesting was also disclosed. These transactions are not necessarily signals of deteriorating fundamentals, but they can weigh on sentiment. Yum! Brands Insider Sale
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! investors. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty to the stock. Pomerantz Investor Investigation

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. UBS Group reissued a “buy” rating on shares of Yum! Brands in a report on Thursday, June 18th. TD Cowen restated a “buy” rating and issued a $180.00 target price on shares of Yum! Brands in a research note on Tuesday, June 16th. JPMorgan Chase & Co. dropped their price target on Yum! Brands from $170.00 to $160.00 and set an “overweight” rating on the stock in a research note on Tuesday, August 4th. Argus cut their price objective on Yum! Brands from $185.00 to $180.00 and set a “buy” rating on the stock in a report on Monday, August 17th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $174.00 price objective on shares of Yum! Brands in a research note on Friday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Yum! Brands currently has a consensus rating of “Moderate Buy” and an average price target of $174.65.

Yum! Brands Profile

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.