Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - UBS maintained its Buy rating and $180.00 price target on Yum! Brands (NYSE:YUM), currently trading at $140.65 with a market cap of $39.1 billion, following the company’s second-quarter results. According to InvestingPro data, the stock trades with relatively low volatility and has maintained dividend payments for 22 consecutive years.
The fast-food restaurant operator reported revenue and adjusted operating profit that were approximately in line with expectations, with Taco Bell delivering strong performance and market share gains despite challenging consumer conditions.
Yum! Brands maintained consistent unit growth of 3% driven primarily by KFC International, with UBS noting solid results in select international markets reflecting successful sales initiatives, strong value propositions, and digital technology contributions.
The company’s technology advancements, particularly the continued global rollout of its Byte platform, drove digital sales growth of 18% (representing 57% of total sales mix) while reducing franchisee costs and supporting more personalized marketing strategies.
UBS believes Yum! Brands’ core restaurant concepts remain well-positioned globally for the long term despite difficult macroeconomic conditions, with potential for solid multi-year unit expansion and earnings growth, particularly as the Byte technology platform delivers additional benefits in coming years.
In other recent news, Yum! Brands reported its second-quarter earnings, revealing an earnings per share (EPS) of $1.44, which was slightly below the forecasted $1.46. The company’s revenue came in at $1.93 billion, missing the expected $1.94 billion. Taco Bell reported same-store sales growth of 4%, falling short of the consensus expectation of 5%. KFC International showed net unit growth of 5% and same-store sales growth of 2%, compared to estimates of 5.5% and 2.2%, respectively. Following these results, Wells Fargo (NYSE:WFC) lowered its price target for Yum! Brands to $155 from $160, maintaining an Equal Weight rating. Similarly, Evercore ISI reduced its price target to $165 from $170, citing anticipated higher near-term overhead expenses. Bernstein reiterated its Market Perform rating with a price target of $145. These developments reflect a cautious outlook from analysts amid Yum! Brands’ recent earnings performance.
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