Yum! Brands’s “Neutral” Rating Reaffirmed at Zacks (YUM)
Yum! Brands (NYSE:YUM)‘s stock had its “neutral” rating reaffirmed by Zacks in a note issued to investors on Thursday, Analyst Ratings.Net reports. They currently have a $76.00 price objective on the stock. Zacks‘ price objective would suggest a potential upside of 4.37% from the stock’s previous close.
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 in 2013. However, the worries seem to be gradually subsiding. Management expects the division to rebound to double-digit earnings growth in 2014. Yum!’s proven business mode 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. However, the China division is not yet out of the woods and negative currency translation may loom large in 2014. We maintain our Neutral recommendation on the stock.”
Several other analysts have also recently commented on the stock. Analysts at Credit Suisse raised their price target on shares of Yum! Brands to $81.00 in a research note on Wednesday, February 5th. 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 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 on Wednesday, January 8th. They set a “buy” rating and a $85.00 price target on the stock. Fifteen investment analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Yum! Brands presently has an average rating of “Hold” and an average target price of $74.28.
Shares of Yum! Brands (NYSE:YUM) traded up 0.19% on Thursday, hitting $72.96. 858,108 shares of the company’s stock traded hands. Yum! Brands has a 52-week low of $63.16 and a 52-week high of $78.68. The stock’s 50-day moving average is $71.98 and its 200-day moving average is $71.84. The company has a market cap of $32.321 billion and a P/E ratio of 30.86.
Yum! Brands (NYSE:YUM) last announced its earnings results on Tuesday, February 4th. The company reported $0.86 earnings per share (EPS) for the quarter, beating the 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 in the previous year, the company posted $0.83 earnings per share. The company’s revenue for the quarter was up .6% on a year-over-year basis. Analysts expect that Yum! Brands will post $3.62 EPS for the current fiscal year.
In other Yum! Brands news, SVP Christain Campbell unloaded 13,157 shares of the company’s stock on the open market in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $73.04, for a total value of $960,987.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
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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