Evercore ISI Reaffirms “Buy” Rating for Yum! Brands (NYSE:YUM)

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Evercore ISI reissued their buy rating on shares of Yum! Brands (NYSE:YUM) in a report released on Tuesday morning, AnalystRatings.com reports. Evercore ISI currently has a $130.00 target price 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).”,” the firm’s analyst wrote.

Several other analysts have also recently weighed in on YUM. Citigroup raised their price objective on shares of Yum! Brands from $103.00 to $105.00 and gave the company a neutral rating in a research report on Tuesday, May 21st. Goldman Sachs Group assumed coverage on shares of Yum! Brands in a research report on Monday, July 29th. They set a neutral rating and a $115.00 price objective on the stock. UBS Group raised their price objective on shares of Yum! Brands from $105.00 to $112.00 and gave the company a buy rating in a research report on Wednesday, May 29th. Morgan Stanley lifted their target price on shares of Yum! Brands from $106.00 to $112.00 and gave the stock an equal weight rating in a research report on Friday, August 2nd. Finally, Robert W. Baird reiterated an outperform rating and issued a $112.00 target price on shares of Yum! Brands in a research report on Monday, April 29th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and seven have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $110.65.

Yum! Brands stock opened at $116.40 on Tuesday. The firm’s fifty day moving average price is $113.29 and its 200-day moving average price is $103.87. The stock has a market cap of $35.49 billion, a P/E ratio of 36.72, a price-to-earnings-growth ratio of 2.46 and a beta of 0.53. Yum! Brands has a fifty-two week low of $83.06 and a fifty-two week high of $119.72.

Yum! Brands (NYSE:YUM) last posted its quarterly earnings data on Thursday, August 1st. The restaurant operator reported $0.93 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.87 by $0.06. The firm had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.28 billion. Yum! Brands had a net margin of 24.29% and a negative return on equity of 13.02%. The business’s quarterly revenue was down 4.2% on a year-over-year basis. During the same quarter last year, the company posted $0.82 EPS. On average, equities research analysts forecast that Yum! Brands will post 3.87 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 6th. Investors of record on Monday, August 19th will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 1.44%. The ex-dividend date of this dividend is Friday, August 16th. Yum! Brands’s payout ratio is presently 53.00%.

In other Yum! Brands news, General Counsel Scott Catlett sold 1,015 shares of the business’s stock in a transaction dated Wednesday, August 14th. The shares were sold at an average price of $116.63, for a total value of $118,379.45. Following the transaction, the general counsel now owns 5,376 shares in the company, valued at $627,002.88. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Greg Creed sold 44,949 shares of the business’s stock in a transaction dated Tuesday, June 4th. The shares were sold at an average price of $105.82, for a total transaction of $4,756,503.18. Following the completion of the transaction, the chief executive officer now owns 158,745 shares in the company, valued at approximately $16,798,395.90. The disclosure for this sale can be found here. In the last quarter, insiders sold 56,755 shares of company stock worth $6,072,849. 0.67% of the stock is owned by corporate insiders.

Hedge funds have recently added to or reduced their stakes in the business. Howe & Rusling Inc. purchased a new position in shares of Yum! Brands in the first quarter valued at about $25,000. Liberty Wealth Management LLC increased its position in shares of Yum! Brands by 302.1% in the second quarter. Liberty Wealth Management LLC now owns 386 shares of the restaurant operator’s stock valued at $43,000 after acquiring an additional 290 shares during the period. Certified Advisory Corp purchased a new position in shares of Yum! Brands in the second quarter valued at about $44,000. Motco increased its position in shares of Yum! Brands by 74.6% in the first quarter. Motco now owns 468 shares of the restaurant operator’s stock valued at $47,000 after acquiring an additional 200 shares during the period. Finally, Advisory Alpha LLC purchased a new position in shares of Yum! Brands in the first quarter valued at about $50,000. Hedge funds and other institutional investors own 74.97% of the company’s stock.

Yum! Brands Company Profile

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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Analyst Recommendations for Yum! Brands (NYSE:YUM)

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