Yum! Brands downgraded with thesis played out at Wells Fargo

Wells Fargo downgraded Yum! Brands to Equal Weight from Overweight with a price target of $135, down from $150. The firm says its bullish 2023 thesis, predicated on accelerating comps, units and margins, has largely played out. Looking to 2024, consensus estimates create a relatively high bar amid slowing recent channel checks and a more limited slate of catalysts, the analyst tells investors in a research note. Wells thinks Yum’s 2024 likely features slowing traffic, moderating price gains and less like upside.