BTIG analyst Peter Saleh has maintained their neutral stance on YUM stock, giving a Hold rating yesterday.
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Peter Saleh has given his Hold rating due to a combination of factors impacting Yum! Brands. The company’s recent performance was quite solid, with better than expected same-store sales and a positive outlook for the upcoming year. Notably, Yum’s operations in the Middle East showed significant improvement, which has been a beneficial factor. The introduction of the Byte digital platform is set to enhance digital adoption and loyalty programs, contributing to future growth potential.
Despite these positive developments, Saleh remains cautious about the stock’s potential for further appreciation. The current valuation appears to be balanced when considering historical averages, and the outlook suggests a stable but not overly compelling risk/reward scenario. Additionally, factors such as slower unit growth due to Pizza Hut closures and higher general and administrative costs weigh in on the decision to maintain a neutral stance. Overall, while there are encouraging signs, Saleh sees stronger opportunities elsewhere in the market.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $151.00 price target.