Zacks Reiterates Neutral Rating for Yum! Brands (YUM)
Yum! Brands (NYSE:YUM)‘s stock had its “neutral” rating reiterated by Zacks in a report issued on Thursday, Analyst Ratings Network reports. They currently have a $70.00 target price on the stock. Zacks‘ target price would indicate a potential upside of 5.29% from the stock’s previous close.
Zacks‘ analyst wrote, “Yum! posted lackluster third-quarter results. The company’s third-quarter 2013 adjusted earnings of $0.85 per share missed the Zacks Consensus Estimate by 8.6% and the year-ago quarter’s earnings by 15%. Earnings in the quarter were under pressure due to the decrease in top line, lower margin and higher tax rate. Total revenue declined 3% year over year to $3.47 billion and also fell short of the Zacks Consensus Estimate by nearly 2.0%. Once again, weak performance by the China Division led to the lackluster results. China’s comps declined 11% in the quarter due to continuing unfavorable impact of the poultry supply issue. A weak earnings outlook is concerning for the company. However, Yum! has a proven business model, which has survived similar threats in the past. Further, Yum! remains relatively well-positioned in the YRI and India segments. Management expects double-digit growth in earnings from 2014 onwards. Hence, we remain Neutral on the stock.”
Yum! Brands (NYSE:YUM) traded down 0.66% on Thursday, hitting $66.04. 3,913,127 shares of the company’s stock traded hands. Yum! Brands has a 1-year low of $59.68 and a 1-year high of $75.13. The stock’s 50-day moving average is $71.44 and its 200-day moving average is $70.53. The company has a market cap of $29.469 billion and a P/E ratio of 21.70. Yum! Brands also was the recipient of some unusual options trading on Tuesday. Stock investors bought 15,096 call options on the stock. This represents an increase of approximately 519% compared to the average daily volume of 2,438 call options.
Yum! Brands (NYSE:YUM) last issued its quarterly earnings data on Wednesday, October 9th. The company reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.93 by $0.08. The company had revenue of $3.47 billion for the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter last year, the company posted $0.99 earnings per share. Yum! Brands’s revenue was down 2.9% compared to the same quarter last year. On average, analysts predict that Yum! Brands will post $3.06 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, November 1st. Investors of record on Friday, October 11th will be given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 2.23%. The ex-dividend date of this dividend is Wednesday, October 9th. This is an increase from Yum! Brands’s previous quarterly dividend of $0.34.
A number of other analysts have also recently weighed in on YUM. Analysts at Jefferies Group reiterated a “hold” rating on shares of Yum! Brands in a research note to investors on Thursday. They now have a $63.00 price target on the stock, down previously from $67.00. Separately, analysts at JPMorgan Chase & Co. cut their price target on shares of Yum! Brands from $80.00 to $77.00 in a research note to investors on Wednesday. They now have an “overweight” rating on the stock. Finally, analysts at Barclays Capital cut their price target on shares of Yum! Brands from $72.00 to $68.00 in a research note to investors on Wednesday. They now have an “equal weight” rating on the stock. Seventeen equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $72.90.
Yum! Brands, Inc (NYSE:YUM) is a quick service restaurant company based on number of system units, with approximately 37,000 units in more than 120 countries and territories.
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