TD Cowen analyst Andrew Charles downgraded Yum! Brands to Hold from Buy with a price target of $145, down from $156. The stock’s risk/reward is balanced as there is risk development will miss consensus in 2024 and 2025, while the removal of Taco Bell breakfast at up to two-thirds of U.S. locations presents a 1%-2% comp headwind that risks a negative sales revision, the analyst tells investors in a research note. TD models Yum’s earnings below consensus in 2024 and 2025. While consensus earnings estimates are achievable via cost cuts, “we do not expect this to be rewarded with multiple expansion,” the firm contends.
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