TD Cowen analyst Andrew Charles maintained a Hold rating on Yum! Brands today and set a price target of $162.00.
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Andrew Charles’s rating is based on a combination of factors including the positive initial steps taken by the new CEO, particularly with Taco Bell’s ongoing strong performance and strategic moves regarding Pizza Hut. While there is optimism about Taco Bell’s momentum and its ability to maintain market share through menu innovation and digital strategies, there are concerns about the performance of KFC, especially given the fluctuating sales in the U.S. and China. Additionally, there is a need for improvement in net restaurant growth to achieve a normalized 5% growth by 2026.
Despite these positive aspects, the overall outlook remains cautious due to the challenges faced by other brands under Yum! Brands, such as Pizza Hut. The strategic alternatives being considered for Pizza Hut highlight the need for significant improvements. Therefore, while there are encouraging signs, the mixed performance across different brands and regions justifies a Hold rating as the company works towards stabilizing and growing its various segments.
According to TipRanks, Charles is a 4-star analyst with an average return of 6.6% and a 49.50% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as McDonald’s, CAVA Group, Inc., and Starbucks.
In another report released on October 27, RBC Capital also maintained a Hold rating on the stock with a $165.00 price target.