Sara Senatore, an analyst from Bank of America Securities, maintained the Hold rating on Yum! Brands (YUM – Research Report). The associated price target remains the same with $165.00.
Sara Senatore’s rating is based on Yum! Brands’ strategic focus on innovation and digital advancements, which are expected to drive growth, particularly in the U.S. market through Taco Bell. The company aims to increase its average unit volume significantly by 2030, leveraging new product introductions and digital enhancements like loyalty programs and AI assistance. Despite these positive indicators, the Hold rating reflects a cautious approach, given the current price is close to the price objective of $165.00 USD.
Internationally, Yum! Brands is concentrating on expanding its presence, particularly in key markets such as the UK, Spain, Australia, and India. While there are encouraging signs of growth in these regions, the company is still in the early stages of its international expansion strategy. The focus on improving restaurant-level margins and leveraging technology investments to enhance profitability also supports the Hold rating, as these efforts are expected to yield results over the longer term.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $146.00 price target.
Based on the recent corporate insider activity of 59 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.