Yum! Brands raises quarterly dividend by 6%

Published 06/02/2025, 13:02
Yum! Brands raises quarterly dividend by 6%

LOUISVILLE - Yum! Brands, Inc. (NYSE: NYSE:YUM) has announced an increase in its quarterly dividend, marking its 7th consecutive year of dividend raises. The Board of Directors has approved a 6% rise, from $0.67 to $0.71 per share of common stock, which will be payable on March 7, 2025, to shareholders of record as of February 21, 2025. According to InvestingPro, the company has maintained dividend payments for 21 consecutive years, with the current yield at 2.04%.

Yum! Brands, a global leader in the quick-service restaurant sector, operates the well-known brands KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill. With over 61,000 restaurants in more than 155 countries and territories, the company has a significant international presence. Its brands have consistently ranked high in various industry recognitions, with Taco Bell notably securing the No. 1 spot in Entrepreneur’s Top Global Franchises Ranking for the fifth year in a row in 2025.

The dividend increase comes on the heels of Yum! Brands’ inclusion in several prestigious lists, such as TIME magazine’s Best Companies for Future Leaders in 2025, and the company’s recognition for its sustainability efforts, having been named to the Dow Jones Sustainability Index North America and Newsweek’s list of America’s Most Responsible Companies in 2024.

The announcement is based on a press release statement and is intended to provide shareholders and the financial community with the latest information on the company’s dividend policy. Yum! Brands’ commitment to shareholder returns remains a cornerstone of its financial strategy, as evidenced by this latest dividend hike.

In other recent news, Yum! Brands has seen significant developments. CFRA analyst Alex Fasciano raised the company’s stock price target to $153, citing projected earnings per share (EPS) of $6.11 for 2025 and anticipated sales of $8,048 million. Despite potential challenges due to a stronger U.S. dollar and uncertainties surrounding foreign policy and tariffs, CFRA believes Yum! Brands’ capacity to grow systemwide sales is not fully recognized by the market.

On the other hand, TD Cowen and Morgan Stanley (NYSE:MS) have adopted a more cautious stance, with TD Cowen lowering its price target for Yum! Brands to $140, and Morgan Stanley downgrading the stock to Equalweight and reducing the price target to $140. Both firms highlighted potential obstacles for the company, such as weaker sales in emerging markets and limited potential for further cost-cutting.

In leadership developments, Yum! Brands announced a significant shuffle at its KFC division. Sabir Sami, the Chief Executive Officer of the KFC Division, will step down from his role effective March 1, 2025. Scott Mezvinsky, currently serving as the President of Taco Bell North America and International, will succeed Mr. Sami as the CEO of KFC. These are the recent developments concerning Yum! Brands.

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