Yum! Brands, Inc. (YUM) currently holds a market capitalization of $38.6 billion. This company, headquartered in Louisville, Kentucky, franchises and operates well-known quick-service restaurants, including KFC, Pizza Hut, Taco Bell, and Habit Burger Grill. They specialize in a variety of food options, such as chicken, pizza, chargrilled burgers, sandwiches, and Mexican cuisine.
Being classified as a “large-cap” stock, Yum! Brands exceeds the $10 billion benchmark that defines such companies. With a presence in more than 150 countries and territories, Yum! operates various franchise models, including store-level and master franchises, to expand its business operations.
Currently, YUM has declined 3.5% from its 52-week high of $143.20 reached on April 29. Over the past three months, shares have gained 4%, underperforming the broader Dow Jones Industrials Average ($DOWI), which saw an 8.6% increase during the same period.
Looking at a longer timespan, YUM shares have increased by 5.8% year-to-date, but this trails DOWI’s impressive 17.4% returns. In the past year, the stock has risen 11.2%, which falls short of DOWI’s 22.1% gains.
Despite recent challenges, YUM stock has consistently traded above its 200-day and 50-day moving averages since late November.
On November 5, shares of YUM gained 1.5% after the release of its Q3 earnings, despite failing to meet expectations. The company reported revenues of $1.83 billion, a 7% increase from last year but below the anticipated $1.89 billion. Weak performances in the Pizza Hut division offset the strong results from Taco Bell and KFC. Additionally, adjusted earnings fell 4.9% year-over-year to $1.37 per share, missing forecasts by 2.8%.
In contrast, YUM has outperformed its competitor, McDonald’s Corporation (MCD), which saw a 5.3% increase over the past year and a 1.4% gain year-to-date.
Although YUM has struggled in the recent market landscape, analysts express cautious optimism regarding its future. Among the 27 analysts who cover the stock, it holds a consensus rating of “Moderate Buy,” with a mean price target of $144.30, suggesting a potential 4.4% upside from current levels.
On the date of publication, Neharika Jain did not hold any positions in the securities mentioned in this article. All information and data in this article are intended for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
