Yum Brands To Buy $200 Million Stake In Grubhub

Delivery Will it drive sales or gobble up profits

Delivery Will it drive sales or gobble up profits

Equities research analysts expect Yum! Brands (NYSE:YUM), 11 have Buy rating, 1 Sell and 16 Hold. During the past six months, Yum!

Yum! Brands (NYSE:YUM) had its target price lowered by Wells Fargo & Co from $85.00 to $82.00 in a research note published on Friday morning.

Yum shares have decreased almost 2 percent since the beginning of the year, while the Standard & Poor's 500 index has stayed almost flat. Brands, Inc. (NYSE:YUM) on Monday, January 22. The company's 50 day moving average price is $76.04 and its 200 day moving average price is $71.06. Yum! Brands had 97 analyst reports since July 1, 2015 according to SRatingsIntel. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 80 cents per share. Brands, Inc. (NYSE:YUM) on Friday, August 4 with "Buy" rating. The restaurant operator reported $0.96 earnings per share for the quarter, beating the Thomson Reuters' consensus estimate of $0.80 by $0.16. Yum! Seven analysts surveyed by Zacks expected $1.61 billion. Brands had a negative return on equity of 17.27% and a net margin of 22.80%. Yum! The company's revenue for the quarter was down 16.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.79 EPS. Yum!

A number of analysts have weighed in on the company. Nomura downgraded Yum! Brands from a "buy" rating to a "neutral" rating and set a $89.00 price objective for the company.in a research report on Tuesday, January 30th. Brands from $74.00 to $78.00 and gave the company an equal weight rating in a research note on Wednesday, October 18th. On Friday, September 8 the stock rating was maintained by Cowen & Co with "Buy".

Yum Brands is not alone in seeing the possibilities. Brant Point Investment Management LLC's holdings in Yum! The firm has "Hold" rating given on Tuesday, May 23 by BMO Capital Markets. The brokerage now has a market perform rating on the restaurant operator's stock. Brands, Inc. (NYSE:YUM) as the stock recently touched $79.31, a 2.61% move from the most recent open. Brands, Inc. (NYSE:YUM) has risen 21.70% since February 10, 2017 and is uptrending. The company had a trading volume of 5,090,622 shares, compared to its average volume of 1,870,000. The company has market cap of $1.16 billion. The company has a quick ratio of 1.41, a current ratio of 1.66 and a debt-to-equity ratio of -1.49. Yum! Investors of record on Wednesday, February 14th will be paid a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, February 13th. This is an increase from Yum! Brands's previous quarterly dividend of $0.30. This represents a $1.44 annualized dividend and a dividend yield of 1.82%. Brands's dividend payout ratio (DPR) is now 31.66%.

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Yum! Brands announced that its Board of Directors has initiated a stock repurchase plan on Friday, November 17th that allows the company to buyback $1.50 billion in outstanding shares. The fund owned 72,125 shares of the restaurant operator's stock at the end of the second quarter. Also, CEO Brian R. Niccol sold 1,104 shares of the stock in a transaction that occurred on Tuesday, January 2nd. Following the completion of the transaction, the chief executive officer now owns 5,509 shares in the company, valued at approximately $453,776.33. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Brands stock in a transaction that occurred on Friday, December 1st. The disclosure for this sale can be found here. Morgan Stanley now owns 4,757,237 shares of the restaurant operator's stock valued at $303,987,000 after buying an additional 2,148,751 shares during the period.

Hedge funds have recently added to or reduced their stakes in the business. Sun Life Financial INC lifted its position in shares of Yum! Brands during the 4th quarter valued at about $102,000. Finally, Arrowstreet Capital Limited Partnership grew its position in Yum! Brands by 892.5% in the 4th quarter. Valeo Financial Advisors LLC acquired a new position in Yum! Brands by 9.2% during the second quarter. More interesting news about Yum! In the March 2017 quarter, sales growth fell to 6 percent for Pizza Hut and 2 percent for KFC, with the June quarter finally showing signs of recovery again. Brands by 18.2% during the third quarter. The Deutsche Bank Ag holds 1.68 million shares with $123.72 million value, up from 2,122 last quarter. Institutional investors own 72.04% of the company's stock. Brands, Inc. (NYSE:YUM) has risen 21.70% since February 10, 2017 and is uptrending.

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Swiss National Bank decreased its stake in Yum Brands Inc (YUM) by 0.34% based on its latest 2017Q3 regulatory filing with the SEC.

GrubHub said it will become Yum Brands' only national US partner, making pickup and deliveries for thousands of KFC and Taco Bell restaurants across the country.

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