Yum! Brands, Inc. (NYSE:YUM) Increases Dividend to $0.75 Per Share

Yum! Brands, Inc. (NYSE:YUM) declared a quarterly dividend on Wednesday, February 4th. Shareholders of record on Friday, February 20th will be given a dividend of 0.75 per share by the restaurant operator on Friday, March 6th. This represents a c) annualized dividend and a yield of 1.9%. The ex-dividend date is Friday, February 20th. This is a 5.6% increase from Yum! Brands’s previous quarterly dividend of $0.71.

Yum! Brands has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 8 years. Yum! Brands has a payout ratio of 42.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Yum! Brands to earn $6.64 per share next year, which means the company should continue to be able to cover its $2.84 annual dividend with an expected future payout ratio of 42.8%.

Yum! Brands Stock Performance

Yum! Brands stock traded up $0.48 during midday trading on Wednesday, reaching $159.22. The company’s stock had a trading volume of 4,062,370 shares, compared to its average volume of 2,236,155. The firm has a market capitalization of $44.21 billion, a PE ratio of 31.04, a P/E/G ratio of 2.15 and a beta of 0.66. Yum! Brands has a fifty-two week low of $129.55 and a fifty-two week high of $163.30. The stock’s 50 day simple moving average is $152.74 and its 200 day simple moving average is $148.84.

Yum! Brands (NYSE:YUM) last announced its quarterly earnings results on Wednesday, February 4th. The restaurant operator reported $1.73 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.76 by ($0.03). The company had revenue of $2.51 billion during the quarter, compared to analysts’ expectations of $2.45 billion. Yum! Brands had a net margin of 17.95% and a negative return on equity of 21.79%. The business’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.61 EPS. Equities analysts predict that Yum! Brands will post 5.94 earnings per share for the current year.

Key Yum! Brands News

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

• Positive Sentiment: Yum raised its quarterly dividend (annualized yield ~1.9%), a ~5.6% bump from the prior payout — a sign of management confidence and a direct support to shareholder returns. Dividend and Q4 release
• Positive Sentiment: Taco Bell led the quarter with strong same-store sales (reported double-digit or high single-digit gains in various writeups) and KFC showed international unit growth — these brands drove a revenue beat and ongoing unit expansion that support future topline momentum. Same-store sales / Reuters
• Neutral Sentiment: Revenue for the quarter came in above consensus ($2.51B vs. ~$2.45B expected), showing 6.4% growth year-over-year — positive for growth but offset by margin and EPS dynamics. Revenue beat / MarketBeat
• Negative Sentiment: Non-GAAP EPS missed estimates ($1.73 vs. ~$1.76 consensus or Zacks $1.78), and the company flagged softer restaurant margins — a key reason for downward pressure on the stock. EPS miss / Zacks
• Negative Sentiment: Pizza Hut is underperforming: reports say the chain will close ~250 underperforming locations and Yum is conducting a strategic review that could include a sale of Pizza Hut — this creates execution and legacy-brand risk. Pizza Hut closures / NYPost
• Negative Sentiment: Insider selling was reported recently, which some investors view as a cautionary signal on near-term prospects. Insider sales / Yahoo

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.