Analyst Jon Tower of Citi maintained a Hold rating on Yum! Brands (YUM – Research Report), boosting the price target to $151.00.
Jon Tower’s rating is based on several factors influencing Yum! Brands’ performance and outlook. The company started the first quarter with strong momentum, particularly in international same-store sales, and expressed optimism about its Taco Bell US business. However, there are concerns about the potential impact of global tariff news on international market growth and franchisee expansion, which could hinder Yum! Brands’ ability to achieve its unit growth targets.
Additionally, while Yum! Brands’ shares have outperformed the market year-to-date, there is uncertainty regarding the sustainability of this trend given the macroeconomic challenges. The company’s ability to maintain its earnings growth and navigate potential risks, such as anti-American sentiment and changes in international tax structures, are also factors contributing to the Hold rating. Overall, while there are positive aspects to Yum! Brands’ current position, the uncertainties and potential risks justify a cautious approach, leading to the Hold recommendation.
In another report released on April 11, TD Cowen also maintained a Hold rating on the stock with a $158.00 price target.
YUM’s price has also changed slightly for the past six months – from $134.650 to $146.000, which is a 8.43% increase.