Quantbot Technologies LP Buys New Stake in Yum! Brands, Inc. $YUM

Quantbot Technologies LP purchased a new position in shares of Yum! Brands, Inc. (NYSE:YUM) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 20,098 shares of the restaurant operator’s stock, valued at approximately $3,213,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Steph & Co. raised its holdings in Yum! Brands by 107.5% in the 1st quarter. Steph & Co. now owns 166 shares of the restaurant operator’s stock worth $26,000 after purchasing an additional 86 shares during the period. Edmond DE Rothschild Holding S.A. acquired a new position in shares of Yum! Brands during the 2nd quarter worth approximately $27,000. Kelleher Financial Advisors purchased a new position in shares of Yum! Brands during the 2nd quarter valued at approximately $29,000. MV Capital Management Inc. purchased a new position in shares of Yum! Brands during the 4th quarter valued at approximately $28,000. Finally, Manning & Napier Advisors LLC acquired a new stake in Yum! Brands in the 1st quarter valued at $28,000. Institutional investors and hedge funds own 82.37% of the company’s stock.

Trending Headlines about Yum! Brands

Here are the key news stories impacting Yum! Brands this week:

• Positive Sentiment: Yum! Brands outlined a renewed consumer-growth strategy centered on strengthening brand engagement, digital capabilities, loyalty programs and operational execution across KFC, Taco Bell and Pizza Hut. The emphasis on personalized customer experiences and technology could support sales and franchisee performance. Yum! Brands Reveals New Path for Consumer Growth
• Positive Sentiment: The company appointed former HanesBrands CEO Steve Bratspies to its board, effective August 26. His experience managing global consumer brands and improving operations may add expertise as Yum! pursues growth and evaluates its portfolio. Yum! Brands Appoints Steve Bratspies to Board
• Neutral Sentiment: Pizza Hut is using a football-themed branding promotion ahead of the NFL season. The marketing effort could increase near-term visibility, but it comes as Yum! advances the multibillion-dollar sale of the chain, making the strategic implications more important than the promotion itself. Pizza Hut Branding Change
• Negative Sentiment: Shares faced pressure after Yum! announced a new chief executive officer. Although a leadership change could bring fresh momentum, investors may be concerned about execution risk and the direction of the company during the transition. Yum! Brands Slides on Naming New CEO
• Negative Sentiment: An insider reportedly reduced a Yum! Brands equity stake by 28%, while executive share withholding related to restricted-stock-unit vesting was also disclosed. These transactions are not necessarily signals of deteriorating fundamentals, but they can weigh on sentiment. Yum! Brands Insider Sale
• Negative Sentiment: Pomerantz LLP said it is investigating potential claims on behalf of Yum! investors. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty to the stock. Pomerantz Investor Investigation

Insider Activity

In related news, VP David Eric Russell sold 7,961 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $153.15, for a total transaction of $1,219,227.15. Following the completion of the sale, the vice president owned 11,960 shares of the company’s stock, valued at approximately $1,831,674. This represents a 39.96% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Christopher Lee Turner sold 270 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $148.14, for a total transaction of $39,997.80. Following the completion of the sale, the chief executive officer owned 64,282 shares of the company’s stock, valued at approximately $9,522,735.48. The trade was a 0.42% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 18,549 shares of company stock valued at $2,890,168 in the last ninety days. 0.14% of the stock is currently owned by corporate insiders.

Yum! Brands Stock Performance

NYSE YUM opened at $153.31 on Monday. The business has a fifty day moving average price of $153.43 and a 200 day moving average price of $155.98. Yum! Brands, Inc. has a one year low of $137.33 and a one year high of $170.14. The company has a market cap of $41.84 billion, a P/E ratio of 19.28, a P/E/G ratio of 2.48 and a beta of 0.55.

Yum! Brands (NYSE:YUM) last announced its earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.58 by $0.04. The company had revenue of $2.17 billion for the quarter, compared to analysts’ expectations of $2.18 billion. Yum! Brands had a net margin of 25.42% and a negative return on equity of 24.57%. The firm’s quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.44 EPS. As a group, sell-side analysts predict that Yum! Brands, Inc. will post 6.42 EPS for the current fiscal year.

Yum! Brands declared that its board has authorized a stock repurchase plan on Tuesday, June 16th that permits the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization permits the restaurant operator to purchase up to 9.4% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on YUM. JPMorgan Chase & Co. reduced their price objective on shares of Yum! Brands from $170.00 to $160.00 and set an “overweight” rating for the company in a research report on Tuesday, August 4th. BMO Capital Markets reiterated a “market perform” rating and issued a $168.00 target price on shares of Yum! Brands in a research report on Monday, May 4th. Weiss Ratings cut shares of Yum! Brands from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 28th. Royal Bank Of Canada upped their price target on shares of Yum! Brands from $165.00 to $170.00 and gave the stock a “sector perform” rating in a research report on Friday, July 31st. Finally, Argus decreased their price target on shares of Yum! Brands from $185.00 to $180.00 and set a “buy” rating on the stock in a research note on Monday, August 17th. Twelve investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $174.65.

About Yum! Brands

Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company’s principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name.

The company’s operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations.