Yum! Brands, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Dennis Geiger from UBS maintained a Buy rating on the stock and has a $180.00 price target.
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Dennis Geiger has given his Buy rating due to a combination of factors including Yum! Brands’ strong positioning for multi-year earnings growth, driven by key brands like Taco Bell and KFC International. Despite facing a challenging industry environment, the company is expected to maintain solid same-store sales growth, particularly at Taco Bell and KFC International, with development plans largely on track for 2025 and beyond.
Geiger anticipates continued momentum at Taco Bell, supported by innovative menu offerings, effective marketing, and digital and loyalty contributions. KFC is also expected to show solid international trends, with efforts to reposition the brand likely to attract younger customers and improve results in the U.S. Furthermore, the company’s valuation appears reasonable, and the Byte by Yum! technology platform is expected to provide significant benefits over the coming years, supporting unit expansion and earnings growth.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $163.00 price target.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of YUM in relation to earlier this year.