We lift our 12-month target price to $152 from $150, 26.5x our 2024 EPS, slightly below YUM’s five-year average forward P/E of 26.9x, reflecting near-term revenue growth risks. We lower our 2024 EPS to $5.74 from $5.84 and FY 25’s to $6.45 from $6.54. YUM posted Q1 adj-EPS of $1.15, $0.05 below consensus. Revenue of $1,598M (-2.9% Y/Y) was $112M below consensus. Adjusted operating income increased 5.5% Y/Y to $515M vs. $568M consensus, with margin expanding to 34.7%. Same-store sales fell 3.0% vs. 3.7% consensus, with declines at Pizza Hut (-7%) and KFC (-4%), partly offset by Taco Bell (+1%). We also note the Middle East conflicts and unfavorable weather were headwinds. While we’re still positive about YUM’s Taco Bell division and its AI initiatives (over 40 currently), there are concerns about near-term margin pressure amid the more promotional environment. Nonetheless, we think YUM is relatively well positioned given its focus on value and its strong presence in the chicken category, especially in China.