Key Stats for Yum Brands Stock
- MTD Price Change for $YUM stock: 8%
- $YUM Share Price as of Nov. 17: $148
- 52-Week High: $163
- $YUM Stock Price Target: $166
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What Happened?
Yum Brands (YUM) stock is up around 8% this month after the restaurant giant reported better-than-expected third-quarter results and announced it’s exploring strategic options for Pizza Hut, including a potential sale of the struggling pizza chain.
The company beat earnings estimates with adjusted EPS of $1.58, topping Wall Street’s forecast of $1.48. Revenue came in at $1.98 billion, slightly ahead of the $1.97 billion analysts expected, while net income rose to $397 million from $382 million a year earlier.
The standout performance came from Taco Bell, which posted 7% same-store sales growth, crushing analyst estimates of 5.2%.
Even KFC showed improvement, with 3% same-store sales growth beating the 2.4% consensus. Importantly, KFC’s U.S. business grew 2% after years of losing ground to newer chains, such as Raising Cane’s.
But the real catalyst for YUM stock appears to be the Pizza Hut announcement. New CEO Chris Turner said the company believes “a different approach, including but not limited to, a sale of the business, would allow Pizza Hut to realize its full potential.”
Pizza Hut has been a drag on results, with same-store sales falling 1% in the quarter and U.S. locations down 7%.
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What the Market Is Telling Us About YUM Stock
Investors are clearly excited about the possibility of Yum shedding Pizza Hut. TD Securities raised its price target on YUM stock to $173 from $162, citing expectations that offloading Pizza Hut would “amplify Yum’s growth profile” and create “the best in-class development growth profile within quick service.”
The math makes sense, given KFC and Taco Bell now represent roughly 90% of Yum’s divisional operating profit.
KFC delivered 14% divisional operating profit growth this quarter, while Taco Bell continues to take market share with its value positioning and menu innovation. Without Pizza Hut weighing down results, YUM stock could command a higher valuation multiple.
Management emphasized that the consumer remains “cautious, but incredibly resilient,” at least when it comes to Taco Bell.
The chain isn’t seeing the consumer pullback affecting many competitors, thanks to its combination of craveable food, convenient digital experience, and unbeatable value.
Digital sales across Yum’s brands hit $10 billion systemwide and now account for 60% of orders.
The company also announced it’s acquiring 128 Taco Bell restaurants in the Southeast U.S. for about $670 million.
These stores are expected to contribute roughly $70 million in incremental EBITDA in 2026, giving an immediate boost to earnings while unlocking development opportunities in an underserved region.
With KFC opening a new restaurant every three hours globally and Taco Bell’s momentum showing no signs of slowing, YUM stock looks positioned for stronger growth ahead, especially if the Pizza Hut review results in a sale that allows management to focus exclusively on its two powerhouse brands.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
