TD Cowen analyst Andrew Charles has maintained their neutral stance on YUM stock, giving a Hold rating today.
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Andrew Charles has given his Hold rating due to a combination of factors that reflect both positive and negative aspects of Yum! Brands’ current performance and outlook. The negative reaction to the stock is attributed to Taco Bell’s same-store sales, which, although solid, fell short of both the firm’s and consensus expectations. Additionally, the company’s development in the second quarter and guidance for core EBIT growth in the fourth quarter were softer than anticipated.
Despite these challenges, there are encouraging signs, such as an improvement in Taco Bell’s sales quarter-to-date and a robust menu and marketing strategy planned for the second half of 2025. However, the analyst has adjusted the 2025 earnings per share estimate down by 1% and lowered the price target to $156. These mixed signals, including impressive transaction growth among low-income consumers despite a challenging quick-service environment, have led to the Hold rating, suggesting a balanced view of potential risks and opportunities.
According to TipRanks, Charles is a 5-star analyst with an average return of 9.2% and a 54.45% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as Wingstop, Starbucks, and Sweetgreen.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $159.00 price target.