Analyst Jon Tower of Citi maintained a Hold rating on Yum! Brands, with a price target of $165.00.
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Jon Tower has given his Hold rating due to a combination of factors including Yum! Brands’ recent performance and future outlook. The company entered the second quarter with strong comparable sales growth, particularly in the Taco Bell US and KFC International segments. However, there are concerns about slowing sales momentum in the US Taco Bell segment due to increased competition and higher expenses related to franchisee conventions.
Despite these challenges, Yum! Brands has maintained its guidance for 2025, which includes unit growth of at least 4% and core EBIT growth of 8%. The company’s shares have slightly outperformed the market year-to-date, but sustaining this performance will depend on the clarity of future growth plans and the ability to ramp up unit growth in 2026. Additionally, the evolution of the Byte platform and its potential income streams could play a role in future performance. Overall, these mixed signals contribute to the Hold rating as the company navigates both opportunities and challenges.
According to TipRanks, Tower is a 5-star analyst with an average return of 12.5% and a 59.35% success rate. Tower covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, Cracker Barrel, and Darden Restaurants.
In another report released on July 17, Wells Fargo also maintained a Hold rating on the stock with a $160.00 price target.