What Are Wall Street Analysts' Target Price for Yum! Brands Stock?

Louisville, Kentucky-based Yum! Brands, Inc. (YUM) develops, operates, franchises, and licenses quick service restaurants. Valued at $37.3 billion by market cap, the company prepares, packages, and sells a menu of food items. 

Shares of this fast-food company have underperformed the broader market considerably over the past year. YUM has gained 5.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.4%. In 2024, YUM’s stock rose 2.2%, compared to the SPX’s 23.1% rise on a YTD basis. 

Narrowing the focus, YUM’s underperformance is apparent compared to the AdvisorShares Restaurant ETF (EATZ). The exchange-traded fund has gained about 36.9% over the past year. Moreover, the ETF’s 24.5% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.

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YUM faced challenges in 2024 as the overall restaurant industry struggled and consumers tightened their budgets. Additionally, the increasing popularity of GLP-1 drugs may have had an impact on fast-food sales.

On Nov. 5, YUM shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $1.37 fell short of Wall Street expectations of $1.41. The company’s revenue was $1.8 billion, falling short of Wall Street forecasts of $1.9 billion.

For the current fiscal year, ending in December, analysts expect YUM’s EPS to grow 6% to $5.48 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion. Moreover, the company failed to surpass its consensus EPS estimate by 2.8% in the previous quarter. 

Among the 27 analysts covering YUM stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and 19 “Holds.”

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This configuration is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”

On Nov. 5, Robert W. Baird analyst David Tarantino maintained a “Buy” rating on YUM with a price target of $154, implying a potential upside of 15.3% from current levels.

The mean price target of $144.09 represents a 7.9% premium to YUM’s current price levels. The Street-high price target of $158 suggests an upside potential of 18.3%. 

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.