Yum! Brands (YUM)

• Market cap: $35B
• 1 day: -0.73%
• 5 days: 2.05%
• 1 month: -6.98%
• 3 months: -6.29%
• 6 months: -3.10%
• Year to date: -6.17%
• 1 year: -2.91%
• 5 years: 18.90%
• 10 years: 76.13%
• Sector: Consumer Discretionary
• Industry: Eating Places

About: Yum Brands is a US-based restaurant operator featuring a portfolio of four brands: KFC (29,900 global units at year-end 2023), Pizza Hut (19,866 units), Taco Bell (8,564 units), and The Habit Burger Grill (381 units). With $64 billion in 2023 systemwide sales, the firm is the second-largest restaurant company in the world behind McDonald's ($130 billion), ahead of Restaurant Brands International ($43 billion) and Starbucks ($29 billion). Yum is 98% franchised, with the largest franchisee, wide-moat Yum China, spun out in 2016, after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity. Yum is the newest evolution of Tricon, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.

Employees: 35,000

Fund manager confidence

Based on 2024 Q3 regulatory filings by fund managers ($100M+ AUM)

61% more call options, than puts

Call options by funds: $605M | Put options by funds: $376M

55% more first-time investments, than exits

New positions opened: 104 | Existing positions closed: 67

33% more funds holding in top 10

Funds holding in top 10: 3 [Q2] → 4 (+1) [Q3]

2% more funds holding

Funds holding: 1,186 [Q2] → 1,207 (+21) [Q3]

3% more capital invested

Capital invested by funds: $34.6B [Q2] → $35.8B (+$1.18B) [Q3]

1.41% less ownership

Funds ownership: 92.8% [Q2] → 91.39% (-1.41%) [Q3]

15% less repeat investments, than reductions

Existing positions increased: 377 | Existing positions reduced: 444

Research analyst outlook

6 Wall Street Analysts provided 1 year price targets over the past 3 months

• Low target: $140 12% upside
• Avg. target: $146 17% upside
• High target: $160 28% upside

6 analyst ratings

• positive: 1 17%
• neutral: 5 83%
• negative: 0 0%

Citigroup Jon Tower 58% 1-year accuracy 18 / 31 met price target	13% upside $141	Neutral Downgraded	10 Jan 2025
Oppenheimer Brian Bittner 32% 1-year accuracy 12 / 38 met price target	28% upside $160	Outperform Maintained	7 Jan 2025
TD Cowen Andrew Charles 44% 1-year accuracy 53 / 120 met price target	16% upside $145	Hold Reiterated	6 Nov 2024
Loop Capital Alton Stump 11% 1-year accuracy 2 / 18 met price target	12% upside $140	Hold Maintained	6 Nov 2024
Deutsche Bank Lauren Silberman 67% 1-year accuracy 8 / 12 met price target	16% upside $145	Hold Maintained	6 Nov 2024