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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Yum! Brands Inc.
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Yum! Brands Inc.
Aug 5, 2025 12:39 PM

03:20 PM EDT, 08/05/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our price target by $2 to $172, 25x our 2026 EPS view (from 28x our 2025 EPS view), in line with the three-year average forward multiple. We lower our 2025 EPS estimate to $6.18 from $6.23 and 2026's to $6.88 from $6.93. Our estimates are mostly unchanged although we factor higher G&A expenses related to its CEO transition and costs related to Byte!, the company's proprietary AI technology, across KFC ( YUM ), Taco Bell, and Pizza Hut. Although near-term cyclical pressure on U.S. consumers is a headwind to comparable sales growth, overall revenue growth was nearly 10% in Q2. In our view, YUM's portfolio of brands is remarkably resilient with market share leadership in many international regions. Moreover, YUM is on pace to exceed its long-term growth algorithm of 8% operating profit growth per year. With operating margins of 30% or more in each of its brands, the company also generates significant free cash flow (+16% Y/Y), which supports growth through economic cycles and enables share buyback activity.

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