Yum! Brands, Inc. (NYSE:YUM) Receives $174.65 Average Price Target from Analysts

Yum! Brands, Inc. (NYSE:YUM) has been given an average recommendation of “Moderate Buy” by the twenty-one ratings firms that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation, twelve have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $174.6471.

A number of equities analysts have commented on YUM shares. Zacks Research cut shares of Yum! Brands from a “hold” rating to a “strong sell” rating in a research note on Monday. Royal Bank Of Canada increased their price target on shares of Yum! Brands from $165.00 to $170.00 and gave the company a “sector perform” rating in a report on Friday, July 31st. Morgan Stanley upgraded Yum! Brands from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $180.00 to $185.00 in a research report on Wednesday, June 3rd. Argus reduced their price objective on Yum! Brands from $185.00 to $180.00 and set a “buy” rating on the stock in a research note on Monday, August 17th. Finally, Citigroup upped their price objective on Yum! Brands from $175.00 to $178.00 and gave the company a “neutral” rating in a research report on Sunday, July 12th.

Yum! Brands Stock Performance

NYSE YUM opened at $150.69 on Friday. The stock has a 50 day moving average price of $153.44 and a 200-day moving average price of $155.82. Yum! Brands has a one year low of $137.33 and a one year high of $170.14. The company has a market capitalization of $41.12 billion, a P/E ratio of 18.96, a P/E/G ratio of 2.51 and a beta of 0.55.

Yum! Brands (NYSE:YUM) last announced its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share 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%. Yum! Brands’s quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.44 earnings per share. As a group, equities analysts predict that Yum! Brands will post 6.42 EPS for the current fiscal year.

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

Insider Activity at Yum! Brands

In other news, CEO Aaron Powell sold 6,001 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $160.42, for a total value of $962,680.42. Following the sale, the chief executive officer owned 12,003 shares of the company’s stock, valued at approximately $1,925,521.26. This represents a 33.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Christopher Lee Turner sold 261 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $153.15, for a total transaction of $39,972.15. Following the completion of the sale, the chief executive officer owned 63,771 shares of the company’s stock, valued at $9,766,528.65. This trade represents a 0.41% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 19,043 shares of company stock worth $2,978,180 in the last ninety days. Corporate insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On Yum! Brands

Several hedge funds have recently added to or reduced their stakes in the company. Amundi boosted its position in shares of Yum! Brands by 63.3% during the second quarter. Amundi now owns 1,124,462 shares of the restaurant operator’s stock valued at $179,756,000 after buying an additional 435,665 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Yum! Brands in the 2nd quarter valued at $99,621,000. California State Teachers Retirement System grew its position in Yum! Brands by 15,378.9% in the 2nd quarter. California State Teachers Retirement System now owns 70,142,092 shares of the restaurant operator’s stock valued at $11,212,915,000 after acquiring an additional 69,688,945 shares during the last quarter. Ameritas Advisory Services LLC purchased a new stake in Yum! Brands in the second quarter worth $327,000. Finally, Wedmont Private Capital lifted its position in shares of Yum! Brands by 7.3% during the second quarter. Wedmont Private Capital now owns 4,296 shares of the restaurant operator’s stock worth $703,000 after purchasing an additional 292 shares during the last quarter. 82.37% of the stock is currently owned by institutional investors.

Key Yum! Brands News

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

• Positive Sentiment: Core brands continue to grow. Stonegate Capital Partners said second-quarter results showed ex-Pizza Hut system sales up 7%, unit growth of 6%, same-store sales growth of 4% and core operating profit growth of 8%. The firm highlighted Taco Bell’s U.S. growth and KFC’s international expansion potential. Stonegate Capital Partners Initiates Coverage on Yum! Brands
• Positive Sentiment: Lower beef costs could support restaurant margins. A temporary 90-day waiver of tariffs on beef imports may reduce input costs for fast-food operators, potentially benefiting Yum!’s restaurant franchisees. ETFs to Gain as Trump Waives Off Tariffs on Beef Imports Temporarily
• Neutral Sentiment: Analyst views are sharply divided. Robert W. Baird upgraded Yum! Brands to “strong-buy,” while Zacks Research downgraded it to “strong sell,” signaling substantial uncertainty over the company’s outlook and valuation.
• Negative Sentiment: Growth expectations and valuation are weighing on sentiment. Estimates for 2026 have been trimmed, while valuation analysis suggests YUM is near fair value or somewhat expensive. An article also argues that anticipated gains from AI automation may already be reflected in the stock price. Yum! Brands stock holds above $150 as estimates are trimmed
• Negative Sentiment: Investor investigation adds legal overhang. Pomerantz LLP said it is investigating potential claims on behalf of Yum! Brands investors. The announcement could increase reputational and litigation concerns, although an investigation does not establish wrongdoing by the company. Pomerantz investor alert regarding Yum! Brands

Yum! Brands Company Profile

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.