Yum Brands Inc. (NYSE:YUM), the $43.9 billion restaurant giant currently trading near its 52-week high at $157.46, saw its CEO David W. Gibbs execute a series of stock transactions on March 17, according to a recent SEC filing. Gibbs sold 5,293 shares of Yum Brands’ common stock at an average price of $154.24 per share, totaling approximately $816,392.
In addition to the sales, Gibbs also acquired 7,788 shares through a stock appreciation right exercise at a price of $49.66 per share, amounting to $386,752. Furthermore, Gibbs disposed of 2,495 shares at a price of $155.05 per share, totaling $386,849. These transactions were conducted under a 10b5-1 plan, which allows executives to set up a trading plan for selling stocks they own.
In other recent news, Yum! Brands has been in the spotlight with several notable updates. The company has reported an anticipated 8% growth in same-store sales for Taco Bell in the first quarter, surpassing industry expectations. Yum! Brands has also outlined ambitious targets for Taco Bell, aiming to achieve sales volumes of $3 million by 2030 and to double its segment EBIT by the end of the decade. Analyst firm TD Cowen responded to these developments by raising its price target for Yum! Brands to $164 while maintaining a Hold rating, reflecting confidence in the company’s growth strategy.
BofA Securities also raised its price target to $153, noting Yum! Brands’ strong performance in international markets, despite some challenges in unit development. Meanwhile, BMO Capital Markets increased its price target to $139, highlighting the company’s slightly better-than-expected earnings per share and robust brand momentum as key factors. Stifel maintained a Hold rating with a price target of $148, emphasizing the clarity of Yum! Brands’ growth strategy for Taco Bell, though they expressed a desire for more detailed execution plans.
These analyst updates underscore a mix of cautious optimism and recognition of potential risks, as Yum! Brands continues to focus on expanding Taco Bell’s domestic and international presence.
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