Analyst Andrew Charles from TD Cowen maintained a Hold rating on Yum! Brands (YUM – Research Report) and increased the price target to $151.00 from $140.00.
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Andrew Charles has given his Hold rating due to a combination of factors that influence Yum! Brands’ future prospects. The guidance for an 8% or more growth in core EBIT by 2025, which surpassed both his and market forecasts, contributed positively to the shares’ performance. Despite the positive momentum, some uncertainties remain, especially with KFC’s performance in key regions like the U.S. and China, which experienced ongoing challenges.
Additionally, while KFC showed improvement in several international markets, consistent recovery is not guaranteed, with potential disruptions such as an earlier Ramadan in 2025 possibly affecting performance. Taco Bell’s strong sales in the fourth quarter and promising early 2025 sales, due to new menu offerings, suggest potential growth; however, the overall risk-versus-reward proposition leads to a cautious Hold stance, as the long-term outlook remains mixed.
According to TipRanks, Charles is a 5-star analyst with an average return of 12.6% and a 59.89% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as Jack In The Box, Starbucks, and Dutch Bros Inc.
In another report released on January 27, Citi also maintained a Hold rating on the stock with a $141.00 price target.