Zacks Reiterates Neutral Rating for Yum! Brands (YUM)
Yum! Brands (NYSE:YUM)‘s stock had its “neutral” rating reaffirmed by Zacks in a research note issued on Wednesday, AnalystRatings.Net reports. They currently have a $76.00 target price on the stock. Zacks‘ target price suggests a potential upside of 5.47% from the company’s current price.
Zacks‘ analyst wrote, “Yum! Brands posted a mixed fourth quarter 2013 with earnings beating the Zacks Consensus Estimate by 7.5% but revenues missing the same by 1.2%. The top line miss was primarily due to lower same-store sales at the U.S. and China divisions. China has been a key player in the company’s growth story. The negative publicity regarding the quality of chicken supplied to Yum!’s KFC in China in Dec 2012 took a toll on the company’s top line. However, the worries seem to be subsiding slowly. Management expects the division to bounce back significantly in 2014 with double-digit earnings growth from 2014 onward. Yum! has a proven business model, which has survived similar threats in the past. Also, the company resorted to an organizational restructuring to focus on high-potential markets and boost overall operations, signaling an effort to turn around in the coming quarters. We maintain our Neutral recommendation on the stock.”
Yum! Brands (NYSE:YUM) traded down 1.50% on Wednesday, hitting $70.98. 3,586,340 shares of the company’s stock traded hands. Yum! Brands has a 52 week low of $61.11 and a 52 week high of $78.68. The stock’s 50-day moving average is $72.31 and its 200-day moving average is $71.85. The company has a market cap of $31.610 billion and a price-to-earnings ratio of 30.19. Yum! Brands also was the target of some unusual options trading activity on Monday. Stock investors bought 19,821 put options on the company. This is an increase of approximately 121% compared to the average volume of 8,985 put options.
Yum! Brands (NYSE:YUM) last posted its quarterly earnings results on Tuesday, February 4th. The company reported $0.86 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.80 by $0.06. The company had revenue of $4.18 billion for the quarter, compared to the consensus estimate of $4.26 billion. During the same quarter last year, the company posted $0.83 earnings per share. Yum! Brands’s revenue was up .6% compared to the same quarter last year. Analysts expect that Yum! Brands will post $3.62 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Credit Suisse raised their price target on shares of Yum! Brands to $81.00 in a research note to investors on Wednesday. They now have a “neutral” rating on the stock. Separately, analysts at Morgan Stanley downgraded shares of Yum! Brands from an “overweight” rating to an “equal weight” rating in a research note to investors on Thursday, January 9th. They now have a $54.00 price target on the stock, down previously from $77.00. Finally, analysts at UBS AG initiated coverage on shares of Yum! Brands in a research note to investors on Wednesday, January 8th. They set a “buy” rating and a $85.00 price target on the stock. Sixteen research analysts have rated the stock with a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $73.53.
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.
To view Zacks’ full report, visit www.zacks.com
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.