TD Cowen Cuts Yum! Brands (NYSE:YUM) Price Target to $177.00

Yum! Brands (NYSE:YUM) had its price objective dropped by stock analysts at TD Cowen from $180.00 to $177.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has a “buy” rating on the restaurant operator’s stock. TD Cowen’s target price would suggest a potential upside of 26.53% from the company’s previous close.

A number of other equities analysts have also recently issued reports on YUM. Zacks Research upgraded Yum! Brands from a “strong sell” rating to a “hold” rating in a report on Friday, October 2nd. Evercore reaffirmed an “outperform” rating on shares of Yum! Brands in a research note on Tuesday, June 16th. Wells Fargo & Company upgraded shares of Yum! Brands from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $165.00 to $175.00 in a research report on Thursday, September 10th. Weiss Ratings lowered shares of Yum! Brands from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 28th. Finally, Royal Bank Of Canada boosted their price objective on shares of Yum! Brands from $165.00 to $170.00 and gave the company a “sector perform” rating in a report on Friday, July 31st. Thirteen investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, Yum! Brands has a consensus rating of “Moderate Buy” and an average target price of $172.56.

Yum! Brands Stock Performance

Shares of Yum! Brands stock opened at $139.89 on Wednesday. The firm has a fifty day moving average of $146.37 and a two-hundred day moving average of $152.17. The stock has a market capitalization of $38.18 billion, a price-to-earnings ratio of 17.60, a PEG ratio of 2.19 and a beta of 0.55. Yum! Brands has a 52 week low of $134.26 and a 52 week high of $170.14.

Yum! Brands (NYSE:YUM) last posted its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.58 by $0.04. The business 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 firm’s revenue was up 12.2% on a year-over-year basis. During the same period last year, the company earned $1.44 EPS. As a group, research analysts forecast that Yum! Brands will post 6.46 EPS for the current fiscal year.

Yum! Brands declared that its board has authorized a stock buyback plan on Tuesday, June 16th that allows the company to buyback $4.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to reacquire up to 9.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Yum! Brands news, CEO Scott Mezvinsky sold 268 shares of Yum! Brands stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $153.64, for a total value of $41,175.52. Following the transaction, the chief executive officer owned 482 shares of the company’s stock, valued at approximately $74,054.48. The trade was a 35.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Tracy Skeans sold 3,494 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $158.00, for a total transaction of $552,052.00. Following the completion of the transaction, the chief operating officer owned 3 shares of the company’s stock, valued at $474. This trade represents a 99.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 12,493 shares of company stock valued at $1,926,462 over the last 90 days. 0.14% of the stock is owned by company insiders.

Institutional Investors Weigh In On Yum! Brands

Several institutional investors have recently added to or reduced their stakes in YUM. BlackRock Inc. acquired a new position in Yum! Brands in the 2nd quarter worth $4,186,811,000. Wellington Management Group LLP raised its stake in shares of Yum! Brands by 1,373.2% in the 2nd quarter. Wellington Management Group LLP now owns 4,631,940 shares of the restaurant operator’s stock valued at $740,462,000 after purchasing an additional 4,317,526 shares during the period. Bank of America Corp DE acquired a new stake in shares of Yum! Brands in the 2nd quarter valued at about $638,589,000. Legal & General Group Plc bought a new stake in shares of Yum! Brands in the second quarter valued at about $297,591,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Yum! Brands in the second quarter valued at about $279,432,000. 82.37% of the stock is owned by institutional investors.

More Yum! Brands News

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

• Positive Sentiment: Zacks Research raised its earnings forecasts, lifting estimates to $2.05 per share for Q4 2027, $6.92 for fiscal 2027 and $7.71 for fiscal 2028. The revisions suggest slightly improved expectations for Yum’s future profitability, although Zacks maintains a “Hold” rating. Zacks Research Predicts Higher Earnings for Yum! Brands
• Positive Sentiment: KFC introduced $3.49 Go Buckets, a portable snack-sized meal designed to fit in a standard car cupholder. The product could help drive incremental traffic and sales by targeting convenience and smaller eating occasions, though its financial impact is not yet known. KFC Puts a Snackable Spin on its Iconic Bucket
• Neutral Sentiment: Guggenheim retained its “Buy” rating but cut its price target from $180 to $155. The revised target still implies potential upside from the referenced $139.89 share price, but the substantial reduction indicates lower valuation expectations. Guggenheim Adjusts Yum! Brands Price Target
• Negative Sentiment: JPMorgan also lowered its price target to $150, adding to evidence that analysts see less near-term valuation upside for YUM. The target remains above the referenced market price, but the cut may weigh on investor sentiment. JPMorgan Cuts Target for Yum! Brands Stock

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.