Piper Sandler raises Yum! Brands stock price target to $150

Published 03/04/2025, 13:32
Piper Sandler raises Yum! Brands stock price target to $150

On Thursday, Piper Sandler analyst Brian Mullan increased the price target for Yum! Brands stock (NYSE:YUM) to $150 from the previous target of $140, while keeping a Neutral stance on the company’s shares. Mullan’s assessment is part of a broader analysis focusing on recent global net unit growth trends among various international franchisors. According to InvestingPro data, analyst targets for YUM range from $138 to $185, with the stock currently trading near its 52-week high of $163.30.

Yum! Brands has seen its shares rise by 18.5% year-to-date, outpacing competitors in the fast-food sector. The company’s performance has surpassed that of Quick Service Restaurant (QSR), McDonald’s (NYSE:MCD), and Domino’s Pizza (NYSE:DPZ) by approximately 1540 basis points (bps), 1030 bps, and 760 bps, respectively. This notable outperformance, according to the analyst, can be largely attributed to Taco Bell’s significant success in the U.S. market and a recovery in same-store sales (SSS) across many of Yum! Brands’ international markets. The company’s strong performance is reflected in its robust financial health, with InvestingPro data showing a 6.7% revenue growth and a healthy gross profit margin of 47.5%.

The improvement in international SSS has been particularly important for Yum! Brands, as it marks a shift from being a source of downward earnings revisions to contributing positively to the company’s financial outlook. This turnaround has been a key factor in the company’s recent stock performance.

Mullan’s report emphasizes the importance of unit growth trends for global franchisors and begins with an in-depth look at Yum! Brands. The analysis serves as a starting point for evaluating the company’s growth trajectory and market position relative to its peers.

Investors and market watchers will likely continue to monitor Yum! Brands’ stock performance and unit growth trends as indicators of the company’s health and competitive standing in the global fast-food industry. For a deeper understanding of YUM’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 10 additional ProTips and detailed financial metrics in the Pro Research Report, which provides actionable intelligence for informed investment decisions.

In other recent news, Yum! Brands has announced that its CEO, David Gibbs, plans to retire in the first quarter of 2026. The company’s Board of Directors has initiated a succession planning process to find a suitable replacement. Under Gibbs’s leadership, the company achieved digital sales exceeding $30 billion in 2024 and expanded its global presence to over 61,000 restaurant units. Analysts at Stifel have maintained a Hold rating on Yum! Brands stock, with a price target of $148, noting the company’s strategy to accelerate growth domestically and internationally. Meanwhile, TD Cowen has raised its price target for Yum! Brands to $164, citing strong first-quarter same-store sales growth of 8% and the company’s long-term objectives for Taco Bell. Additionally, Dutch Bros Inc (NYSE:BROS). has outlined plans to expand its store count to 2,029 locations by 2029 and has appointed Brian Cahoe as Chief Development Officer to oversee this growth. The company also reported a 4.6% increase in same-shop sales for the first quarter and announced its entry into the consumer packaged goods market. These developments highlight the ongoing strategic initiatives within both Yum! Brands and Dutch Bros Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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