BUZZ-Street View: Yum posts solid quarter amid choppy environment

Reuters
02-07
BUZZ-Street View: Yum posts solid quarter amid choppy environment

** Yum Brands YUM.N beat estimates for Q4 comparable sales and profit on Thursday, on value offerings driving demand at Taco Bell

** At least four brokerages raised PT on stock, with median PT of 23 brokerages at $90 - data compiled by LSEG

CHALLENGES REMAIN DESPITE TACO BELL BOOST

** TD Cowen ("hold", PT raised by $11 to $151) sees further potential for Taco Bell outperformance and China stimulus tailwind, but says these are not sufficient to overpower development weakness and "opacity" in emerging markets view

** Jefferies ("hold", PT raised by $5 to $138) says visibility still clouded given international franchise issues, tepid China and tough U.S. fast-food environment, but sees Taco Bell to continue outperforming

** BofA ("neutral", PT raised by $10 to $153) is "cautiously optimistic" on account of Pizza Hut headwinds, challenged international unit development; sees 2025 to be another year of below-algorithm unit growth

** BTIG ("neutral") believes past year's results have been impressive against broader industry challenges, but has stronger conviction in other names amongst their coverage, including McDonald's MCD.N

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))

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