Swiss National Bank raised its stake in shares of Yum! Brands, Inc. (NYSE:YUM – Free Report) by 7.2% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 814,900 shares of the restaurant operator’s stock after buying an additional 54,400 shares during the period. Swiss National Bank’s holdings in Yum! Brands were worth $126,701,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also modified their holdings of the stock. Steph & Co. raised its holdings in shares of Yum! Brands by 107.5% during the first quarter. Steph & Co. now owns 166 shares of the restaurant operator’s stock worth $26,000 after acquiring an additional 86 shares in the last quarter. MV Capital Management Inc. acquired a new stake in shares of Yum! Brands during the 4th quarter valued at about $28,000. Manning & Napier Advisors LLC acquired a new stake in shares of Yum! Brands during the 1st quarter valued at about $28,000. Wiser Advisor Group LLC bought a new stake in shares of Yum! Brands in the 3rd quarter valued at approximately $28,000. Finally, Jessup Wealth Management Inc acquired a new position in Yum! Brands in the fourth quarter worth approximately $30,000. 82.37% of the stock is currently owned by hedge funds and other institutional investors.
Yum! Brands Trading Down 0.4%
YUM opened at $147.35 on Tuesday. The stock’s 50 day simple moving average is $154.32 and its 200-day simple moving average is $156.85. The stock has a market cap of $40.61 billion, a PE ratio of 23.77, a P/E/G ratio of 1.88 and a beta of 0.56. Yum! Brands, Inc. has a 1 year low of $137.33 and a 1 year high of $170.14.
Yum! Brands declared that its board has initiated a stock repurchase program on Tuesday, June 16th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 9.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.
Yum! Brands Announces Dividend
The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Wednesday, May 27th were paid a $0.75 dividend. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $3.00 dividend on an annualized basis and a yield of 2.0%. Yum! Brands’s payout ratio is presently 48.39%.
Key Stories Impacting Yum! Brands
Here are the key news stories impacting Yum! Brands this week:
- Positive Sentiment: Yum! Brands said a positive cyclospora test on Taylor Farms lettuce was a false positive, which could help ease some fears that the outbreak source had been confirmed. Market Chatter: Yum! Brands Says Positive Cyclospora Test on Taylor Farms Lettuce was False Positive
- Positive Sentiment: Pizza Hut launched a throwback value menu with $3 Personal Pan Pizzas, which could support traffic and help offset some of the negative Taco Bell news. Pizza Hut Launches Throwback Value Menu With $3 Personal Pan Pizzas
- Neutral Sentiment: ThaiBev is considering selling its large KFC franchise business in Thailand, but this appears to be a third-party asset sale rather than a direct operating change for Yum! Brands. ThaiBev Weighs Sale of Thailand’s Largest KFC Franchise With 500+ Restaurants
- Neutral Sentiment: Analysts and traders are watching Yum! Brands’ chart closely as it approaches a possible “death cross,” a bearish technical signal that can add downward pressure on the stock. QUICK SPARK: Yum! Brands May Soon Serve Traders a Death Cross
- Negative Sentiment: Taco Bell visits fell sharply, with reports of traffic dropping nearly 19% after health authorities linked lettuce from a supplier to a parasite outbreak, raising concerns about near-term sales and brand damage. Taco Bell Traffic Sinks After Lettuce Tied to Parasite Outbreak
- Negative Sentiment: Yum shares were reported to be sliding as Taco Bell traffic dropped nearly 19%, reinforcing concerns that the outbreak is weighing on restaurant-sector sentiment and Yum!’s same-store sales outlook. Yum Shares Slide 10% as Taco Bell Traffic Drops Nearly 19%
Insider Transactions at Yum! Brands
In other Yum! Brands news, CEO Christopher Lee Turner sold 270 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $148.14, for a total transaction of $39,997.80. Following the completion of the transaction, the chief executive officer owned 64,282 shares in the company, valued at $9,522,735.48. This trade represents a 0.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aaron Powell sold 6,001 shares of Yum! Brands stock in a transaction that occurred 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 directly owned 12,003 shares in the company, valued at $1,925,521.26. The trade was a 33.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 12,423 shares of company stock valued at $1,953,721. Corporate insiders own 0.14% of the company’s stock.
Wall Street Analyst Weigh In
Several brokerages recently weighed in on YUM. Weiss Ratings lowered shares of Yum! Brands from a “buy (b+)” rating to a “buy (b)” rating in a research report on Wednesday, May 6th. Royal Bank Of Canada restated a “sector perform” rating and set a $165.00 price target on shares of Yum! Brands in a research note on Monday, April 20th. Wells Fargo & Company raised their price target on shares of Yum! Brands from $160.00 to $165.00 and gave the company an “equal weight” rating in a report on Thursday, April 30th. Citigroup lifted their price objective on shares of Yum! Brands from $175.00 to $178.00 and gave the company a “neutral” rating in a research note on Sunday, July 12th. Finally, Evercore reiterated an “outperform” rating on shares of Yum! Brands in a report on Tuesday, June 16th. Eleven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, Yum! Brands presently has a consensus rating of “Moderate Buy” and a consensus price target of $174.81.
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.
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