Stock performance

Mizuho’s downgrade appears to have led to a fall in Yum! Brands’ (YUM) stock price. Today, at 2:20 PM ET, the company was trading ~0.5% lower than the previous day’s closing price. The stock price also took a hit from weakness in the broader equity market with the S&P 500 Index down ~0.2%.

Yum! Brands’ Stock Falls after Mizuho’s Downgrade

Year-to-date performance

After returning 12.6% in 2018, Yum! Brands has continued its upward momentum in 2019 as well. Year-to-date, the company has returned 8.0% as of March 19. Peers Papa John’s (PZZA) and Domino’s Pizza (DPZ) have returned 18.0% and 0.3%, respectively. The Consumer Discretionary Select Sector SPDR ETF (XLY) has returned 13.4%.

Valuation multiple

The increase in Yum! Brands’ stock price since the beginning of 2019 has also raised its valuation multiple. As of March 19, the company was trading at a forward PE multiple of 25.4x, compared to 24.2x at the beginning of 2019. On March 19, Yum! Brands’ peers Papa John’s and Domino’s Pizza were trading at forward PE multiples of 39.1x and 25.6x, respectively.

Also, Yum! Brands is trading at 26.0 times analysts’ 2018 EPS estimate of $3.82 and 23.4 times analysts’ 2020 EPS estimate of $4.25. Its EPS are expected to rise 20.4% in 2019 and 11.2% in 2020.

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.