Advisory Alpha LLC Expands Investment in Yum! Brands by 18.6%

Advisory Alpha LLC has increased its stake in Yum! Brands, Inc. (NYSE:YUM) by 18.6% during the second quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), the investment fund now holds a total of 3,853 shares of the global restaurant operator, having acquired an additional 605 shares during this period. The total value of Advisory Alpha’s holdings in Yum! Brands amounts to approximately $571,000.

Several other institutional investors have also adjusted their positions in Yum! Brands recently. Fortitude Family Office LLC raised its stake by 5.6%, bringing its total to 1,277 shares valued at $189,000 after purchasing an additional 68 shares. Valmark Advisers Inc. increased its holdings by 3.7%, owning now 1,915 shares valued at $284,000 following the acquisition of 69 more shares.

Manchester Capital Management LLC made significant moves in the first quarter, boosting its stake by an impressive 78.0%. The firm now possesses 162 shares worth $25,000 after adding 71 shares. Similarly, Geneos Wealth Management Inc. grew its stake by 7.3%, now holding 1,048 shares valued at $165,000, and Valeo Financial Advisors LLC increased its position by 0.8%, totaling 9,178 shares valued at $1.44 million. Collectively, institutional investors now control 82.37% of Yum! Brands’ stock.

Insider Trading Activity

In addition to these investment changes, there have been notable insider transactions. On October 1, 2023, CEO Scott Mezvinsky sold 275 shares at an average price of $152.59, totaling approximately $41,962.25. Following this transaction, Mezvinsky holds 1,755 shares, valued at $267,795.45, reflecting a 13.55% decrease in his ownership.

Similarly, Director Weir Mirian M. Graddick sold 2,038 shares on August 14, 2023, for a total of $296,121.40. After this sale, Graddick owns 1,233 shares valued at around $179,154.90, marking a 62.31% reduction in their stake. Over the last 90 days, insiders have sold a total of 29,078 shares worth $4.3 million, with insider ownership currently at 0.33%.

Yum! Brands Performance Overview

Yum! Brands recently reported its quarterly earnings on August 5, 2023, revealing earnings per share (EPS) of $1.44, which fell short of the consensus estimate of $1.46. The company recorded a net margin of 18.11% and a negative return on equity of 21.01%. Revenue for the quarter was reported at $1.93 billion, slightly below analyst expectations of $1.94 billion, yet reflecting a 9.6% year-over-year increase from the previous quarter.

Looking ahead, analysts predict that Yum! Brands, Inc. will achieve an EPS of $5.94 for the current fiscal year.

The company has also declared a quarterly dividend of $0.71, which was distributed on September 12, 2023, to shareholders on record as of September 2. This dividend represents an annualized payout of $2.84 and a yield of 2.0%, with a current dividend payout ratio of 56.02%.

Analyst Ratings and Future Outlook

Recent analyst evaluations of Yum! Brands indicate a mix of ratings. Piper Sandler raised its price target from $155.00 to $157.00, maintaining a “neutral” rating. Royal Bank of Canada initiated coverage with a “sector perform” rating and a price target of $165.00. Guggenheim lowered its target from $167.00 to $160.00 while retaining a “buy” rating.

Melius began coverage with a “buy” rating and a price target of $200.00. In contrast, JPMorgan Chase & Co. reduced its target from $162.00 to $160.00, maintaining an “overweight” rating. Currently, eleven analysts have rated Yum! Brands with a “buy” rating, while thirteen have issued a “hold” rating. According to data from MarketBeat.com, the consensus rating is “hold” with an average target price of $162.82.

Yum! Brands, Inc. operates globally through its KFC, Taco Bell, Pizza Hut, and Habit Burger Grill brands, serving various food categories including chicken, pizza, burgers, and Mexican cuisine. As the company continues to adapt and grow within the competitive food service industry, investor interest remains strong, evidenced by recent activity from Advisory Alpha LLC and other institutional players.