How Will Yum! Brands Do with Such a Mixed Bag of Recommendations?


Apr. 25 2016, Updated 8:04 a.m. ET

Analysts’ recommendations

As of April 11, 2016, Yum! Brands (YUM) was trading at $81.80. The share price may have already priced in the estimates that we’ve discussed in the earlier articles. In this part of the series, we’ll look at analysts’ recommendations and estimated price targets over the next 12 months. YUM forms 0.32% of the holdings of the iShares Russell 1000 Growth ETF (IWF),

What are Analysts recommending for YUM! Brands?

With the expectation of a spin-off of its China Division, YUM stock has risen 12% since the beginning of 2016. Analysts are expecting YUM’s share prices to stabilize at the current prices. They’ve estimated that share prices could touch $82.80 in the next 12 months. That would be a growth of 0.5% from the current prices.

On the higher side, Paul L. Westra of Stifel has estimated that the stock could reach $100. On the lower side, Karen Holthouse of Goldman Sachs has forecast a price of $66.

Over the next 12 months, analysts are expecting share prices of Papa John’s (PZZA) and McDonald’s (MCD) to rise 21.6% and 1%, respectively. Analysts expect Domino’s Pizza (DPZ) stock to fall 1.3%.

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Analysts’ recommendations

According to a Bloomberg consensus, of the 28 analysts surveyed, 39.3% have recommended a “buy” for YUM, 57.1% have recommended a “hold,” and 3.6% have recommended a “sell.” As analysts raise their target prices for the next 12 months, the price of the stock may also increase, and vice versa.

A share price that’s lower than the target price doesn’t mean an automatic “buy.” Before investing, you should carefully analyze the various metrics we’ve covered in this series.


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