Yum Brands

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 […]

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We cut our 12-month target to $130 from $147, 22.3x our 2024 EPS, below YUM’s five-year average forward P/E, reflecting revenue growth risks. We raise our 2023 EPS view to $5.30 from $5.24 and FY 25’s to $5.84 from $5.72. YUM posted Q3 adj-EPS of $1.44, $0.17 above consensus. Revenue of $1,708M (+4.1% Y/Y) was $64M below consensus. Adjusted operating income grew 16.4% Y/Y to $619M vs. $588M consensus, with margin widening to 36.2%. YUM’s comp sales grew 9.0% vs. 4.5% consensus. Taco Bell in the U.S. was a bright spot, with comp sales up 4% Q/Q and comp transaction growth seen across income groups. We’re also positive on YUM’s margins, given its plans for new kiosks (higher average check), menu items (chicken nuggets at KFC), and

Barclays analyst Jeffrey Bernstein maintains Yum Brands (NYSE:YUM) with a Equal-Weight and lowers the price target from $140 to $126.

Citigroup analyst Jon Tower maintains Yum Brands (NYSE:YUM) with a Buy and lowers the price target from $173 to $163.

Yum! Brands (NYSE:YUM) reported Q1 adjusted earnings  of $1.06 per diluted share, up from $1.05 a year earlier. Analysts polled by Capital IQ expected $1.13. Revenue for the quarter ended March 31 was $1.65 billion, compared with $1.55 billion a year earlier. Analysts surveyed by Capital IQ expected $1.62 billion. The restaurant chain operator reported same-store sales growth of 8% year over year. Analysts polled by Capital IQ expected 4.9%.