Yum! Brands Given “Neutral” Rating at Zacks (YUM)
Yum! Brands (NYSE:YUM)‘s stock had its “neutral” rating reaffirmed by Zacks in a research note issued to investors on Tuesday. They currently have a $79.00 price target on the stock. Zacks‘s price objective indicates a potential upside of 5.66% from the company’s current price.
Zacks’ analyst wrote, “Yum! Brands posted a mixed first-quarter 2014 with earnings beating the Zacks Consensus Estimate by 3.6% but revenues missing the same by 3.9%. The top-line miss was primarily due to soft comps at the U.S. division for Pizza Hut and Taco Bell. A harsh winter partly dampened the U.S. business. However, both earnings and revenues grew year over year. The company saw strong comps at the China division – a key player in the company’s growth story – reflecting diminishing concerns related to the chicken supply chain issues. Management expects the division to rebound to double-digit earnings growth in 2014. Also, the company resorted to organizational restructuring to focus on high-potential markets and boost overall operations, signaling an effort to propel growth in the coming quarters. While the China division has started to show signs of improvement, it is still not out of the woods, given the economic slowdown in the nation. We therefore maintain our Neutral recommendation on the stock.”
Several other analysts have also recently commented on the stock. Analysts at Jefferies Group raised their price target on shares of Yum! Brands from $70.00 to $75.00 in a research note on Thursday, April 24th. They now have a “hold” rating on the stock. Separately, analysts at JPMorgan Chase & Co. downgraded shares of Yum! Brands from an “overweight” rating to a “neutral” rating in a research note on Monday, April 21st. They now have a $80.00 price target on the stock, up previously from $77.00. Finally, analysts at Barclays raised their price target on shares of Yum! Brands from $72.00 to $83.00 in a research note on Tuesday, April 15th. They now have an “equal weight” rating on the stock. Twelve 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. The company has a consensus rating of “Hold” and an average price target of $78.75.
Shares of Yum! Brands (NYSE:YUM) traded up 1.43% on Tuesday, hitting $75.84. The stock had a trading volume of 792,723 shares. Yum! Brands has a 52 week low of $64.08 and a 52 week high of $79.70. The stock has a 50-day moving average of $75.96 and a 200-day moving average of $74.15. The company has a market cap of $33.474 billion and a P/E ratio of 29.82.
Yum! Brands (NYSE:YUM) last released its earnings data on Tuesday, April 22nd. The company reported $0.87 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.84 by $0.03. The company had revenue of $2.72 billion for the quarter, compared to the consensus estimate of $2.79 billion. During the same quarter last year, the company posted $0.70 earnings per share. Yum! Brands’s revenue was up 7.5% compared to the same quarter last year. Analysts expect that Yum! Brands will post $3.68 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, August 1st. Investors of record on Friday, July 11th will be paid a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 1.98%. The ex-dividend date is Wednesday, July 9th.
YUM! Brands, Inc (NYSE:YUM) is a quick service restaurant company based on number of system units, with over 39,000 units in more than 125 countries and territories.
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