Yum! Brands (NYSE:YUM) CEO Sells $41,044.20 in Stock

Yum! Brands, Inc. (NYSE:YUM) CEO Scott Mezvinsky sold 268 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $153.15, for a total value of $41,044.20. Following the transaction, the chief executive officer owned 483 shares of the company’s stock, valued at $73,971.45. This represents a 35.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Scott Mezvinsky also recently made the following trade(s):

• On Wednesday, July 1st, Scott Mezvinsky sold 277 shares of Yum! Brands stock. The stock was sold at an average price of $160.42, for a total transaction of $44,436.34.
• On Monday, June 1st, Scott Mezvinsky sold 261 shares of Yum! Brands stock. The stock was sold at an average price of $148.14, for a total transaction of $38,664.54.

Yum! Brands Price Performance

Shares of NYSE YUM opened at $152.37 on Thursday. The business’s 50 day moving average is $153.68 and its two-hundred day moving average is $156.53. Yum! Brands, Inc. has a 1-year low of $137.33 and a 1-year high of $170.14. The stock has a market capitalization of $42.00 billion, a P/E ratio of 19.17, a PEG ratio of 2.36 and a beta of 0.55.

Yum! Brands (NYSE:YUM) last issued its quarterly earnings results on Thursday, July 30th. The restaurant operator reported $1.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.58 by $0.04. The company had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.18 billion. Yum! Brands had a negative return on equity of 24.57% and a net margin of 25.42%.Yum! Brands’s revenue was up 12.2% on a year-over-year basis. During the same period last year, the company earned $1.44 earnings per share. As a group, equities research analysts anticipate that Yum! Brands, Inc. will post 6.52 earnings per share for the current fiscal year.

Yum! Brands announced that its Board of Directors has initiated a share buyback program on Tuesday, June 16th that allows the company to buyback $4.00 billion in shares. This buyback authorization allows the restaurant operator to repurchase up to 9.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

Yum! Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Wednesday, May 27th were paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Wednesday, May 27th. Yum! Brands’s dividend payout ratio (DPR) is currently 37.74%.

Wall Street Analyst Weigh In

YUM has been the subject of several research analyst reports. BMO Capital Markets reaffirmed a “market perform” rating and set a $168.00 price target on shares of Yum! Brands in a research note on Monday, May 4th. TD Cowen reissued a “buy” rating and set a $180.00 price target on shares of Yum! Brands in a research report on Tuesday, June 16th. Evercore reiterated an “outperform” rating on shares of Yum! Brands in a report on Tuesday, June 16th. Citigroup lifted their target price on shares of Yum! Brands from $175.00 to $178.00 and gave the stock a “neutral” rating in a research note on Sunday, July 12th. Finally, UBS Group reaffirmed a “buy” rating on shares of Yum! Brands in a research report on Thursday, June 18th. Eleven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $174.31.

Institutional Investors Weigh In On Yum! Brands

A number of institutional investors have recently modified their holdings of the business. Capital International Investors grew its stake in Yum! Brands by 20.0% in the 4th quarter. Capital International Investors now owns 19,419,826 shares of the restaurant operator’s stock valued at $2,938,139,000 after acquiring an additional 3,240,190 shares during the period. State Street Corp grew its stake in Yum! Brands by 1.0% during the 4th quarter. State Street Corp now owns 13,164,814 shares of the restaurant operator’s stock valued at $1,991,573,000 after acquiring an additional 124,720 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Yum! Brands by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 8,800,382 shares of the restaurant operator’s stock valued at $1,334,427,000 after purchasing an additional 121,304 shares during the last quarter. Norges Bank purchased a new position in shares of Yum! Brands during the 4th quarter worth $706,799,000. Finally, Morgan Stanley boosted its holdings in Yum! Brands by 2.4% in the 4th quarter. Morgan Stanley now owns 4,471,127 shares of the restaurant operator’s stock valued at $676,392,000 after purchasing an additional 104,512 shares during the last quarter. 82.37% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Yum! Brands

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

• Positive Sentiment: JPMorgan maintained an “overweight” rating on YUM while lowering its price target from $170 to $160. The revised target still implies upside and suggests the bank views the recent weakness as an opportunity, although the reduction reflects more cautious expectations. JPMorgan rating and price target report
• Positive Sentiment: Analysts continue to highlight YUM’s nearly $9 billion digital ecosystem, which spans mobile ordering, loyalty programs and restaurant operations. Stronger digital engagement could support sales, customer frequency and franchisee productivity over time. YUM’s digital growth engine
• Positive Sentiment: Commentary on a potential $2.7 billion Pizza Hut exit suggests a separation could simplify YUM’s brand portfolio, reduce debt and allow greater focus on faster-growing KFC and Taco Bell. The transaction remains a strategic possibility rather than a confirmed deal. YUM’s Pizza Hut exit analysis
• Neutral Sentiment: Vice President David Eric Russell sold 7,961 shares worth approximately $1.22 million, reducing his direct holdings by about 40%. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a signal of management’s current outlook. SEC insider transaction filing
• Negative Sentiment: Reports that Michigan health officials contacted Yum! about a Taco Bell cyclospora outbreak before a public alert have raised concerns about customer traffic, sales, legal exposure and potential reputational damage. The issue remains a significant overhang for the stock. Michigan cyclospora alert involving Taco Bell

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.