KFC Owner Yum Brands Sees Slower Sales Growth, Goldman Sachs Analyst Revises Forecast
Portfolio Pulse from Nabaparna Bhattacharya
Yum! Brands, Inc. (NYSE:YUM) reported slower sales growth in its second quarter earnings. Analysts from Goldman Sachs, Piper Sandler, and BMO Capital Markets maintained neutral ratings with price forecasts of $150, $140, and $135 respectively. Adjustments in EBITDA and revenue estimates reflect weaker same-store sales growth but are somewhat mitigated by reduced general and administrative expenses. Despite long-term optimism, analysts prefer global fast-food peers like Domino's Pizza Inc (NYSE:DPZ), McDonald's Corporation (NYSE:MCD), and Restaurant Brands International Inc. (NYSE:QSR).
August 07, 2024 | 7:00 pm
News sentiment analysis
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NEUTRAL IMPACT
Yum! Brands reported slower sales growth in Q2, leading analysts to maintain neutral ratings with price targets between $135 and $150. Adjustments in EBITDA and revenue estimates reflect weaker same-store sales growth but are somewhat mitigated by reduced G&A expenses.
The neutral ratings and slight adjustments in forecasts indicate a balanced outlook. The slower sales growth is offset by reduced G&A expenses, leading to minimal changes in EPS estimates.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
BMO Capital Markets analyst prefers Domino's Pizza over Yum! Brands despite Yum's strong long-term fundamentals. Domino's is seen as a better option in the current market environment.
The preference for Domino's Pizza over Yum! Brands suggests a positive outlook for DPZ in the current market environment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
BMO Capital Markets analyst prefers McDonald's over Yum! Brands despite Yum's strong long-term fundamentals. McDonald's is seen as a better option in the current market environment.
The preference for McDonald's over Yum! Brands suggests a positive outlook for MCD in the current market environment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
BMO Capital Markets analyst prefers Restaurant Brands International over Yum! Brands despite Yum's strong long-term fundamentals. Restaurant Brands International is seen as a better option in the current market environment.
The preference for Restaurant Brands International over Yum! Brands suggests a positive outlook for QSR in the current market environment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50