Morgan Stanley analyst Brian Harbour maintained a Hold rating on Yum! Brands (YUM – Research Report) today and set a price target of $146.00.
Brian Harbour has given his Hold rating due to a combination of factors related to Yum! Brands’ current market position and future growth prospects. While Taco Bell, one of Yum! Brands’ key assets, shows resilience and potential for growth through digital innovation and international expansion, there are uncertainties regarding the execution of these strategies. The company’s ambitious goals for increasing average unit volumes and expanding its international store base are promising, but their feasibility remains in question given past challenges.
Moreover, while Taco Bell’s digital mix and product innovation are strong, there are concerns about whether these will continue to drive growth at the same pace. The brand’s efforts to broaden its menu and compete with a wider range of quick-service restaurants must be balanced with maintaining its core brand identity. These uncertainties, alongside the need for further evidence of sustained growth across all brands under Yum! Brands, contribute to the Hold rating as investors await more clarity on the company’s long-term strategy execution.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $164.00 price target.