Yum! Brands (NYSE:YUM) Stock Price Target Cut by TD Cowen

Yum! Brands (NYSE:YUM) had its price objective lowered by research analysts at TD Cowen from $180.00 to $177.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has a “buy” rating on the restaurant operator’s stock. TD Cowen’s price objective points to a potential upside of 23.62% from the stock’s current price.

Other equities research analysts have also recently issued reports about the company. JPMorgan Chase & Co. dropped their price objective on Yum! Brands from $160.00 to $150.00 and set an “overweight” rating for the company in a research note on Tuesday, September 29th. Royal Bank Of Canada raised their target price on Yum! Brands from $165.00 to $170.00 and gave the company a “sector perform” rating in a report on Friday, July 31st. Weiss Ratings downgraded Yum! Brands from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, July 28th. Zacks Research upgraded shares of Yum! Brands from a “strong sell” rating to a “hold” rating in a research note on Friday, October 2nd. Finally, Guggenheim reduced 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. Thirteen investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $172.56.

Yum! Brands Stock Performance

Yum! Brands stock opened at $143.18 on Wednesday. The company’s 50 day simple moving average is $145.85 and its 200-day simple moving average is $151.96. Yum! Brands has a 1 year low of $134.26 and a 1 year high of $170.14. The company has a market capitalization of $39.07 billion, a price-to-earnings ratio of 18.01, a price-to-earnings-growth ratio of 2.24 and a beta of 0.55.

Yum! Brands (NYSE:YUM) last posted its quarterly earnings data on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share for the quarter, topping analysts’ consensus estimates of $1.58 by $0.04. The firm had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.18 billion. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The firm’s quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter last year, the company posted $1.44 EPS. Equities analysts expect that Yum! Brands will post 6.46 earnings per share for the current year.

Yum! Brands announced that its Board of Directors has authorized a stock repurchase program on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the restaurant operator to buy up to 9.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Insider Activity at Yum! Brands

In related news, CEO Christopher Turner sold 285 shares of the stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $140.11, for a total value of $39,931.35. Following the transaction, the chief executive officer directly owned 63,225 shares of the company’s stock, valued at $8,858,454.75. This trade represents a 0.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Russell sold 7,961 shares of the business’s stock in a transaction on Monday, August 3rd. The shares were 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 12,778 shares of company stock worth $1,966,393. Corporate insiders own 0.14% of the company’s stock.

Institutional Trading of Yum! Brands

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Yum! Brands during the 2nd quarter worth approximately $4,186,811,000. Wellington Management Group LLP lifted its stake in Yum! Brands by 1,373.2% in the second quarter. Wellington Management Group LLP now owns 4,631,940 shares of the restaurant operator’s stock valued at $740,462,000 after buying an additional 4,317,526 shares during the last quarter. Bank of America Corp DE purchased a new stake in Yum! Brands in the second quarter valued at approximately $638,589,000. Legal & General Group Plc acquired a new stake in shares of Yum! Brands in the second quarter valued at approximately $297,591,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Yum! Brands during the second quarter worth approximately $279,432,000. 82.37% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Yum! Brands

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

• Positive Sentiment: Zacks Research increased its EPS forecasts for Yum! Brands to $6.92 for fiscal 2027 and $7.71 for fiscal 2028, while raising its fourth-quarter 2027 estimate to $2.05 from $2.03. The firm maintains a Hold rating, but the higher estimates suggest improving earnings expectations. Zacks Research Predicts Higher Earnings for Yum! Brands
• Positive Sentiment: TD Cowen maintained its Buy rating while trimming its price target to $177 from $180. The revised target still implies substantial upside from recent trading levels, supporting investor confidence in YUM’s valuation. TD Cowen Adjusts Price Target on Yum! Brands
• Neutral Sentiment: Investor coverage remains mixed but generally constructive. Yum! Brands has a consensus rating of “Moderate Buy,” with analysts citing the company’s global franchise model, dividend and recently authorized $4 billion share-repurchase program as potential supports. A comparison of YUM and Domino’s also highlights the trade-off between dividend growth and share-price stability. YUM versus DPZ dividend comparison
• Negative Sentiment: CEO Christopher Lee Turner sold 285 shares for approximately $39,931, reducing his direct holdings by 0.45%. Because the transaction was made under a pre-arranged Rule 10b5-1 plan and represents a small portion of his remaining stake, it is a limited negative signal rather than a clear change in management’s outlook. Yum! Brands CEO insider sale

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.