Royal Bank of Canada Initiates Coverage on Yum! Brands (NYSE:YUM)

Equities research analysts at Royal Bank of Canada assumed coverage on shares of Yum! Brands (NYSE:YUM) in a research report issued on Monday, The Fly reports. The firm set a “sector perform” rating on the restaurant operator’s stock.

Other equities research analysts have also issued reports about the company. MKM Partners began coverage on Yum! Brands in a research note on Tuesday, August 13th. They issued a “neutral” rating and a $125.00 price objective for the company. Cfra downgraded Yum! Brands from a “buy” rating to a “hold” rating in a research report on Wednesday, October 30th. Citigroup set a $138.00 price target on Yum! Brands and gave the company a “hold” rating in a report on Monday, August 12th. ValuEngine downgraded Yum! Brands from a “buy” rating to a “hold” rating in a research report on Wednesday, October 2nd. Finally, Evercore ISI reaffirmed a “buy” rating and set a $130.00 price objective on shares of Yum! Brands in a research note on Tuesday, August 13th. One analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and five have issued a buy rating to the company. The stock has a consensus rating of “Hold” and an average target price of $112.73.

Shares of NYSE YUM traded up $0.21 during mid-day trading on Monday, hitting $98.98. 1,786,732 shares of the company’s stock traded hands, compared to its average volume of 1,732,905. Yum! Brands has a 1 year low of $86.40 and a 1 year high of $119.72. The company’s 50-day moving average is $102.07 and its two-hundred day moving average is $109.49. The company has a market capitalization of $29.87 billion, a P/E ratio of 31.22, a PEG ratio of 2.17 and a beta of 0.46.

Yum! Brands (NYSE:YUM) last released its quarterly earnings results on Wednesday, October 30th. The restaurant operator reported $0.80 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.94 by ($0.14). Yum! Brands had a negative return on equity of 11.69% and a net margin of 20.88%. The company had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.35 billion. During the same quarter in the prior year, the business posted $1.04 EPS. The company’s revenue was down 3.7% on a year-over-year basis. On average, equities analysts expect that Yum! Brands will post 3.71 EPS for the current fiscal year.

Yum! Brands declared that its Board of Directors has approved a stock buyback plan on Thursday, November 21st that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the restaurant operator to buy up to 6.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

In other news, President David W. Gibbs sold 1,583 shares of Yum! Brands stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $113.37, for a total transaction of $179,464.71. Following the completion of the sale, the president now directly owns 43,279 shares in the company, valued at $4,906,540.23. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, President David W. Gibbs sold 1,521 shares of Yum! Brands stock in a transaction on Friday, November 15th. The stock was sold at an average price of $98.63, for a total value of $150,016.23. Following the sale, the president now owns 43,279 shares of the company’s stock, valued at $4,268,607.77. The disclosure for this sale can be found here. Insiders sold a total of 4,682 shares of company stock worth $503,818 in the last ninety days. 0.67% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of YUM. Atwater Malick LLC bought a new position in Yum! Brands in the third quarter worth approximately $26,000. Tradewinds Capital Management LLC purchased a new position in Yum! Brands during the 3rd quarter worth $30,000. Certified Advisory Corp purchased a new position in Yum! Brands during the 2nd quarter worth $44,000. TRUE Private Wealth Advisors bought a new stake in Yum! Brands during the 2nd quarter valued at $54,000. Finally, Global Wealth Management Investment Advisory Inc. raised its position in Yum! Brands by 4,636.4% during the 2nd quarter. Global Wealth Management Investment Advisory Inc. now owns 521 shares of the restaurant operator’s stock valued at $58,000 after purchasing an additional 510 shares in the last quarter. 75.55% of the stock is currently owned by institutional investors.

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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