Zacks: Analysts Expect Yum! Brands, Inc. (NYSE:YUM) to Post $0.79 Earnings Per Share

Equities research analysts expect Yum! Brands, Inc. (NYSE:YUM) to announce earnings of $0.79 per share for the current quarter, according to Zacks. Seven analysts have made estimates for Yum! Brands’ earnings. The lowest EPS estimate is $0.74 and the highest is $0.87. Yum! Brands posted earnings per share of $0.82 during the same quarter last year, which would suggest a negative year-over-year growth rate of 3.7%. The company is scheduled to announce its next earnings report on Wednesday, May 6th.

On average, analysts expect that Yum! Brands will report full-year earnings of $3.90 per share for the current financial year, with EPS estimates ranging from $3.80 to $4.00. For the next financial year, analysts anticipate that the firm will report earnings of $4.48 per share, with EPS estimates ranging from $4.39 to $4.64. Zacks Investment Research’s EPS calculations are an average based on a survey of research firms that that provide coverage for Yum! Brands.

Yum! Brands (NYSE:YUM) last released its quarterly earnings data on Thursday, February 6th. The restaurant operator reported $1.00 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.13). Yum! Brands had a net margin of 23.12% and a negative return on equity of 13.90%. The company had revenue of $1.69 billion for the quarter, compared to analysts’ expectations of $1.66 billion. During the same period in the previous year, the firm earned $0.40 earnings per share. The firm’s revenue for the quarter was up 8.7% on a year-over-year basis.

A number of analysts have commented on YUM shares. Deutsche Bank started coverage on shares of Yum! Brands in a report on Friday, February 14th. They set a “hold” rating and a $97.00 target price for the company. Robert W. Baird reaffirmed a “buy” rating and set a $120.00 target price on shares of Yum! Brands in a report on Friday, February 7th. Argus cut shares of Yum! Brands from a “buy” rating to a “hold” rating in a report on Tuesday, December 17th. Cowen cut shares of Yum! Brands from an “outperform” rating to a “market perform” rating and reduced their target price for the company from $117.00 to $109.00 in a report on Wednesday, January 8th. Finally, Cfra cut shares of Yum! Brands from a “buy” rating to a “hold” rating in a report on Wednesday, October 30th. One analyst has rated the stock with a sell rating, eighteen have assigned a hold rating and five have issued a buy rating to the stock. Yum! Brands presently has an average rating of “Hold” and a consensus price target of $111.42.

In other news, Director Greg Creed sold 45,113 shares of the firm’s stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $102.35, for a total value of $4,617,315.55. Following the completion of the sale, the director now owns 194,619 shares in the company, valued at approximately $19,919,254.65. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, President David W. Gibbs sold 1,530 shares of the firm’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $100.43, for a total transaction of $153,657.90. Following the completion of the sale, the president now owns 43,266 shares of the company’s stock, valued at approximately $4,345,204.38. The disclosure for this sale can be found here. 0.67% of the stock is currently owned by company insiders.

A number of hedge funds have recently bought and sold shares of the stock. Patriot Financial Group Insurance Agency LLC boosted its stake in Yum! Brands by 2.1% in the 3rd quarter. Patriot Financial Group Insurance Agency LLC now owns 4,431 shares of the restaurant operator’s stock worth $503,000 after purchasing an additional 93 shares in the last quarter. Kingsview Wealth Management LLC lifted its stake in Yum! Brands by 2.4% during the 4th quarter. Kingsview Wealth Management LLC now owns 4,209 shares of the restaurant operator’s stock valued at $424,000 after acquiring an additional 97 shares during the period. Davis R M Inc. lifted its stake in Yum! Brands by 2.1% during the 4th quarter. Davis R M Inc. now owns 4,806 shares of the restaurant operator’s stock valued at $484,000 after acquiring an additional 100 shares during the period. Firestone Capital Management acquired a new stake in Yum! Brands during the 4th quarter valued at approximately $101,000. Finally, Cornerstone Advisors Inc. lifted its stake in Yum! Brands by 1.2% during the 3rd quarter. Cornerstone Advisors Inc. now owns 8,191 shares of the restaurant operator’s stock valued at $929,000 after acquiring an additional 101 shares during the period. 74.79% of the stock is currently owned by institutional investors.

Shares of YUM traded down $0.36 during mid-day trading on Friday, hitting $103.51. 1,006,594 shares of the company traded hands, compared to its average volume of 1,731,106. The stock has a 50-day moving average price of $104.04 and a two-hundred day moving average price of $107.16. Yum! Brands has a 1 year low of $92.50 and a 1 year high of $119.72. The stock has a market cap of $31.42 billion, a price-to-earnings ratio of 25.00, a P/E/G ratio of 2.17 and a beta of 0.44.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Friday, February 14th will be given a dividend of $0.47 per share. The ex-dividend date is Thursday, February 13th. This represents a $1.88 annualized dividend and a yield of 1.82%. This is a positive change from Yum! Brands’s previous quarterly dividend of $0.42. Yum! Brands’s dividend payout ratio (DPR) is 52.96%.

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

About Yum! Brands

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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