Yum! Brands, Inc. (NYSE:YUM) Stock Has Average Price Target of $172.56

Yum! Brands, Inc. (NYSE:YUM) has been given a consensus recommendation of “Moderate Buy” by the twenty-one research firms that are presently covering the stock, Marketbeat reports. Eight investment analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 1 year price target among analysts that have covered the stock in the last year is $172.56.

A number of research firms recently commented on YUM. Weiss Ratings lowered Yum! Brands from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 28th. Robert W. Baird decreased their target price on shares of Yum! Brands from $174.00 to $165.00 and set an “outperform” rating for the company in a research report on Wednesday, September 16th. JPMorgan Chase & Co. decreased their target price on shares of Yum! Brands from $160.00 to $150.00 and set an “overweight” rating for the company in a research report on Tuesday, September 29th. Zacks Research upgraded shares of Yum! Brands from a “strong sell” rating to a “hold” rating in a report on Friday, October 2nd. Finally, Guggenheim dropped their price target on shares of Yum! Brands from $180.00 to $155.00 and set a “buy” rating on the stock in a research report on Tuesday, October 6th.

Insider Activity

In related news, CEO Christopher Turner sold 285 shares of Yum! Brands stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $140.11, for a total transaction of $39,931.35. Following the completion of the transaction, the chief executive officer owned 63,225 shares of the company’s stock, valued at $8,858,454.75. This trade represents a 0.45% 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. Also, CEO Scott Mezvinsky sold 241 shares of the business’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $136.89, for a total transaction of $32,990.49. Following the completion of the transaction, the chief executive officer owned 482 shares in the company, valued at approximately $65,980.98. The trade was a 33.33% 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. In the last three months, insiders have sold 12,778 shares of company stock valued at $1,966,393. 0.14% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. V Square Quantitative Management LLC lifted its stake in shares of Yum! Brands by 9.4% in the 3rd quarter. V Square Quantitative Management LLC now owns 12,294 shares of the restaurant operator’s stock valued at $1,676,000 after purchasing an additional 1,055 shares during the period. Boltwood Capital Management grew its stake in Yum! Brands by 10.2% during the third quarter. Boltwood Capital Management now owns 1,619 shares of the restaurant operator’s stock worth $221,000 after purchasing an additional 150 shares during the period. Envestnet Portfolio Solutions Inc. grew its stake in Yum! Brands by 25.3% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 23,572 shares of the restaurant operator’s stock worth $3,768,000 after purchasing an additional 4,760 shares during the period. Bullseye Investment Management LLC acquired a new stake in Yum! Brands during the second quarter worth approximately $248,000. Finally, Tidal Investments LLC increased its holdings in Yum! Brands by 114.4% in the second quarter. Tidal Investments LLC now owns 53,189 shares of the restaurant operator’s stock worth $8,503,000 after purchasing an additional 28,380 shares in the last quarter. 82.37% of the stock is owned by institutional investors.

Yum! Brands News Summary

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

• Positive Sentiment: KFC U.S. will replace PepsiCo beverages with Coca-Cola products beginning in January 2027, with the rollout expected to reach all U.S. restaurants by spring. Yum! presents the agreement as part of KFC’s broader menu and beverage refresh, potentially supporting traffic and the brand’s comeback efforts. KFC beverage partnership announcement
• Positive Sentiment: Trading data showed investors purchased 3,322 YUM call options, about 275% above the average daily volume. The activity indicates increased speculative interest in a potential rebound, though options flow alone is not a fundamental catalyst.
• Positive Sentiment: Analysts at Yahoo Finance argued that Yum! Brands could be undervalued following its Taco Bell and KFC refocus. A separate report estimated roughly 19% to 23% potential undervaluation, providing a valuation-based support for the shares if management executes. Yum Brands potential undervaluation
• Neutral Sentiment: Yum! is deepening supplier relationships across KFC, Taco Bell and Pizza Hut to improve ingredient reliability, purchasing efficiency and franchise operations. The longer-term margin benefits remain uncertain. Yum Brands supplier relationships
• Neutral Sentiment: Yum China’s plan to expand Lavazza coffee shops in Hong Kong concerns the separately listed Yum China Holdings, not Yum! Brands, and is unlikely to materially affect YUM.
• Negative Sentiment: Jefferies lowered its Yum! Brands earnings forecasts as Taco Bell sales weaken and the Pizza Hut disposal reduces the earnings outlook. The firm maintained a Hold rating and a $147 price target, reinforcing near-term uncertainty. Jefferies Yum Brands outlook
• Negative Sentiment: Analyst coverage remains broadly neutral, suggesting investors may want clearer evidence that Taco Bell’s performance and the KFC refocus can offset portfolio changes and softer forecasts.

Yum! Brands Stock Down 0.2%

YUM traded down $0.28 during midday trading on Friday, hitting $150.55. 2,020,088 shares of the company were exchanged, compared to its average volume of 2,514,845. The firm has a market capitalization of $41.09 billion, a P/E ratio of 18.94, a P/E/G ratio of 2.41 and a beta of 0.55. Yum! Brands has a 1-year low of $134.26 and a 1-year high of $170.14. The firm’s 50 day moving average price is $145.48 and its 200-day moving average price is $151.59.

Yum! Brands (NYSE:YUM) last released its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.58 by $0.04. The firm had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.18 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%. The business’s revenue was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.44 EPS. On average, sell-side analysts predict that Yum! Brands will post 6.46 earnings per share for the current fiscal year.

Yum! Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Wednesday, September 9th were given a dividend of $0.75 per share. The ex-dividend date was Wednesday, September 9th. This represents a $3.00 annualized dividend and a dividend yield of 2.0%. Yum! Brands’s dividend payout ratio is 37.74%.

About Yum! Brands

Yum! Brands, Inc is a global restaurant company that develops, operates, and franchises quick-service restaurants. Its portfolio includes KFC, which specializes in fried and cooked chicken; Taco Bell, known for Mexican-inspired food; Pizza Hut, which offers pizza and related products; and The Habit Burger Grill, a fast-casual chain focused on chargrilled burgers, sandwiches, salads, and shakes.

The company primarily uses a franchised business model, working with franchisees and licensees to operate restaurants in more than 150 countries and territories.