News
Buy Yum Brands as it explores sale of Pizza Hut, says Evercore ISI
Published
6 months agoon
By
admin
Sometimes less is more, and that may be the case for Yum Brands , according to Evercore ISI. The firm upgraded the fast-food conglomerate to outperform from in line. It also hiked its price target to $180 from $165, signaling 20% upside from Tuesday’s close. The rating change comes a day after Yum Brands said it was exploring strategic options for its struggling Pizza Hut business, including a sale. Offloading that franchise could give the stock a long-term boost, analyst David Palmer wrote. “With an anticipated sale of Pizza Hut, our 2027e EPS drops from $7.64 to ~$7.10. That said, after the spin-off, we are modeling higher—and more consistent—profit growth,” Palmer said in a note to clients. “Given low capital intensity and potential proceeds from a Pizza Hut sale—our base case is a low $3B valuation—Yum Brands can meaningfully accelerate share repurchases.” The analyst is also bullish on Taco Bell, as the Mexican fast food chain gains market share. “Yum highlighted that Taco Bell is winning with a cautious, but resilient consumer and that it grew sales across all income bands with outsized growth among families and younger consumers,” he said. “We estimate that despite double-digit beef inflation, company-owned margin can still hit 24% for the year.” Yum Brands rose more than 1% in the premarket after Evercore’s upgrade. Most analysts are on the sidelines when it comes to Yum Brands, however. Of the 32 who cover the stock, 21 rate it a hold.
This industrial giant is emerging as a big AI play, says Wells Fargo
Novo Nordisk’s strategy tested as investors push back on board revamp
Alibaba plans AI subscriptions, stablecoin-like payments with JPMorgan
UK borrowing costs spike on report government to scrap plans to raise income tax
Trump’s threatened the BBC with a $1B lawsuit: Here’s what’s going on
UBS’s picks for global returns next year
Wells Fargo sees Caterpillar continuing to roar higher, emerging as an artificial intelligence play. The bank initiated shares of...
Flags with the logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic...
Key Points Alibaba plans to use “tokenization” of payments for cross-border transactions in its business-to-business arm. Kuo Zhang, president...
Rachel Reeves, U.K. chancellor of the exchequer, delivers a speech in London, UK, on Tuesday, Nov. 4, 2025. Bloomberg...
US President Donald Trump speaks to reporters as he arrives at Palm Beach International Airport on Oct. 31,...
Investors looking for global diversification opportunities should look to a specific subset of stocks in Europe, according to UBS...
Eakarat Buanoi | Istock | Getty Images LISBON, Portugal — Top tech executives told CNBC they’re concerned about...
Tan Su Shan, deputy chief executive officer and managing director of institutional banking at DBS Group Holdings Ltd., speaks during...
CHENGDU, CHINA – OCTOBER 18: People walk past the Louis Vuitton store at Taikoo Li, a high-end shopping area that...
The United States said Thursday it will remove tariffs on some foods and other imports from Argentina, Ecuador, Guatemala and...
