Oppenheimer Weighs in on Yum! Brands, Inc.’s Q4 2018 Earnings (YUM)

Yum! Brands, Inc. (NYSE:YUM) – Analysts at Oppenheimer raised their Q4 2018 earnings estimates for Yum! Brands in a note issued to investors on Thursday. Oppenheimer analyst B. Bittner now expects that the restaurant operator will post earnings of $1.03 per share for the quarter, up from their previous forecast of $1.01. Oppenheimer currently has a “Buy” rating and a $85.00 price objective on the stock.

Yum! Brands (NYSE:YUM) last issued its earnings results on Thursday, February 8th. The restaurant operator reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.16. Yum! Brands had a net margin of 22.80% and a negative return on equity of 17.27%. The company had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same period in the prior year, the business posted $0.79 earnings per share. The firm’s revenue for the quarter was down 16.4% compared to the same quarter last year.

Several other research analysts have also weighed in on YUM. Wells Fargo & Co lowered their target price on shares of Yum! Brands from $85.00 to $82.00 and set a “market perform” rating on the stock in a research report on Friday. Instinet lowered shares of Yum! Brands from a “buy” rating to a “neutral” rating in a research report on Tuesday, January 30th. Nomura lowered shares of Yum! Brands from a “buy” rating to a “neutral” rating and set a $89.00 target price on the stock. in a research report on Tuesday, January 30th. Cowen restated a “buy” rating and set a $91.00 target price on shares of Yum! Brands in a research report on Friday, November 3rd. Finally, BMO Capital Markets upped their target price on shares of Yum! Brands from $77.00 to $80.00 and gave the stock a “market perform” rating in a research report on Friday, November 3rd. Fourteen investment analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the stock. The company presently has an average rating of “Buy” and an average price target of $81.96.

Yum! Brands (NYSE YUM) opened at $79.31 on Monday. The company has a current ratio of 1.66, a quick ratio of 1.41 and a debt-to-equity ratio of -1.49. Yum! Brands has a 1 year low of $62.85 and a 1 year high of $86.93. The firm has a market cap of $26,730.00, a PE ratio of 20.93, a price-to-earnings-growth ratio of 1.90 and a beta of 0.95.

Several institutional investors and hedge funds have recently made changes to their positions in YUM. Macquarie Group Ltd. lifted its stake in shares of Yum! Brands by 37.8% during the second quarter. Macquarie Group Ltd. now owns 92,566 shares of the restaurant operator’s stock valued at $6,827,000 after buying an additional 25,400 shares during the period. Shelton Capital Management purchased a new position in shares of Yum! Brands during the second quarter valued at approximately $229,000. Janus Henderson Group PLC lifted its stake in shares of Yum! Brands by 674.6% during the second quarter. Janus Henderson Group PLC now owns 356,762 shares of the restaurant operator’s stock valued at $26,315,000 after buying an additional 310,707 shares during the period. Koch Industries Inc. purchased a new position in shares of Yum! Brands during the second quarter valued at approximately $509,000. Finally, WINTON GROUP Ltd lifted its stake in shares of Yum! Brands by 63.3% during the second quarter. WINTON GROUP Ltd now owns 16,017 shares of the restaurant operator’s stock valued at $1,181,000 after buying an additional 6,208 shares during the period. 73.55% of the stock is currently owned by institutional investors and hedge funds.

In related news, CEO Brian R. Niccol sold 927 shares of the company’s stock in a transaction that occurred on Friday, December 1st. The shares were sold at an average price of $83.46, for a total transaction of $77,367.42. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Brian R. Niccol sold 1,104 shares of the company’s stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $82.37, for a total transaction of $90,936.48. Following the transaction, the chief executive officer now directly owns 5,509 shares in the company, valued at approximately $453,776.33. The disclosure for this sale can be found here. Insiders sold 4,325 shares of company stock worth $363,065 over the last quarter. Company insiders own 7.38% of the company’s stock.

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 9th. Stockholders of record on Wednesday, February 14th will be given a $0.36 dividend. The ex-dividend date of this dividend is Tuesday, February 13th. This is a positive change from Yum! Brands’s previous quarterly dividend of $0.30. This represents a $1.44 annualized dividend and a dividend yield of 1.82%. Yum! Brands’s dividend payout ratio is currently 31.66%.

Yum! Brands declared that its Board of Directors has initiated a stock repurchase plan on Friday, November 17th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the restaurant operator to reacquire shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

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Yum! Brands Company Profile

YUM! Brands, Inc is engaged in restaurant business. As of December 31, 2016, the Company operated or franchised over 43,500 restaurants in more than 135 countries and territories operating under the KFC, Pizza Hut or Taco Bell (collectively the Concepts) brands. The Company operates through three segments: The KFC Division, which includes the operations of the KFC concept around the world; The Pizza Hut Division, which includes the operations of the Pizza Hut concept around the world, and The Taco Bell Division, which includes the operations of the Taco Bell concept around the world.

Earnings History and Estimates for Yum! Brands (NYSE:YUM)

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