We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
YUM's recent negative EPS revisions land it a Zacks Rank #5 (Strong Sell) and extend a downward trend.
The restaurant company behind KFC and Taco Bell is struggling against multiple headwinds.
Yum! Brands, Inc. (YUM - Free Report) is the restaurant giant behind KFC, Taco Bell, and Habit Burger & Grill.
Yum’s earnings outlook has trended lower over the last several years as it struggles against headwinds facing the entire fast food industry.
The company is trying to adapt, and it even sold one of its struggling, yet iconic brands, Pizza Hut, recently. Its recent wave of downward earnings revisions land the stock a Zacks Rank #5 (Strong Sell) right now.
Should Investors Stay Away from YUM Stock Right Now?
Yum! Brands is the parent company behind Taco Bell, KFC, and fast-casual concept Habit Burger.
The company and its subsidiaries franchise or operate more than 44,000 restaurants in 150 countries.
Image Source: Zacks Investment Research
The company announced in the middle of June that it entered into “definitive agreements to sell Pizza Hut for $2.7 billion in the aggregate, subject to certain purchase price adjustments…”
“Pizza Hut, excluding Mainland China, will be acquired by LongRange Capital, a private equity firm with a customer-centric and operationally oriented approach, and Pizza Hut in Mainland China will be acquired by Yum China Holdings, Inc. (YUMC).”
Image Source: Zacks Investment Research
Yum is struggling against an array of headwinds battering its standing on Wall Street and with some customers.
The owner of KFC and beyond is trying to navigate inflation that’s hitting lower-income customers, as well as the negative impact of changing eating habits and the rise of GLP-1 diets.
Yum is still projected to grow its revenue and earnings at solid rates in 2026 and 2027.
But its downward earnings revisions land it a Zacks Rank #5 (Strong Sell) right now. They are also part of a long-term trend of negative earnings revisions.
Image Source: Zacks Investment Research
The fast-food giant has climbed only 10% in the past five years, while the S&P 500 jumped ~75%.
Plus, YUM’s Retail – Restaurants industry sits in the bottom 34% of ~250 Zacks industries. All in, it might be best for investors looking to buy stocks right now to look elsewhere until Yum proves it’s ready to turn things around.
View the Zacks #1 Rank List
Bear of the Day: Yum! Brands, Inc. (YUM)
Key Takeaways
Yum! Brands, Inc. (YUM - Free Report) is the restaurant giant behind KFC, Taco Bell, and Habit Burger & Grill.
Yum’s earnings outlook has trended lower over the last several years as it struggles against headwinds facing the entire fast food industry.
The company is trying to adapt, and it even sold one of its struggling, yet iconic brands, Pizza Hut, recently. Its recent wave of downward earnings revisions land the stock a Zacks Rank #5 (Strong Sell) right now.
Should Investors Stay Away from YUM Stock Right Now?
Yum! Brands is the parent company behind Taco Bell, KFC, and fast-casual concept Habit Burger.
The company and its subsidiaries franchise or operate more than 44,000 restaurants in 150 countries.
Image Source: Zacks Investment Research
The company announced in the middle of June that it entered into “definitive agreements to sell Pizza Hut for $2.7 billion in the aggregate, subject to certain purchase price adjustments…”
“Pizza Hut, excluding Mainland China, will be acquired by LongRange Capital, a private equity firm with a customer-centric and operationally oriented approach, and Pizza Hut in Mainland China will be acquired by Yum China Holdings, Inc. (YUMC).”
Image Source: Zacks Investment Research
Yum is struggling against an array of headwinds battering its standing on Wall Street and with some customers.
The owner of KFC and beyond is trying to navigate inflation that’s hitting lower-income customers, as well as the negative impact of changing eating habits and the rise of GLP-1 diets.
Yum is still projected to grow its revenue and earnings at solid rates in 2026 and 2027.
But its downward earnings revisions land it a Zacks Rank #5 (Strong Sell) right now. They are also part of a long-term trend of negative earnings revisions.
Image Source: Zacks Investment Research
The fast-food giant has climbed only 10% in the past five years, while the S&P 500 jumped ~75%.
Plus, YUM’s Retail – Restaurants industry sits in the bottom 34% of ~250 Zacks industries. All in, it might be best for investors looking to buy stocks right now to look elsewhere until Yum proves it’s ready to turn things around.