Yum! Brands downgraded to In Line from Outperform at Evercore ISI

Evercore ISI analyst David Palmer downgraded Yum! Brands to In Line from Outperform with a price target of $145, down from $160, largely due to incremental disappointment about Taco Bell trends recently. Three months ago, the firm had been hoping for a meaningful Taco Bell acceleration driven by innovation, but this has been short lived. Though the company is on track to deliver 8%-plus operating profit in 2024, despite below algorithm system sales due to G&A cost control, the firm does not believe this trend can continue in 2025, the analyst tells investors.