Argus cuts Yum! Brands to Hold, sees traffic decelerate

Argus downgraded Yum! Brands to Hold from Buy. The company has reacahed profitability and achieved its store opening targets last year, but the firm is less positive on its prospects this year as it is likely to see customer traffic decelerate and menu prices plateau as low-income consumers find dining at fast-food chains less affordable, the analyst tells investors in a research note. The firm is also reducing its FY24 EPS view by 10c to $5.80 while noting that the current stock price adequately reflects the potential for slowing growth.