Barclays has revised its price target for Yum! Brands (YUM, Financial), reducing it from $165 to $163 while maintaining an Overweight rating. This adjustment comes as part of the firm's preview of the restaurant sector's first-quarter performance.
The initial months of the year presented challenges for comparable sales due to adverse weather conditions. Although there was some recovery observed in March, it was not sufficient to imply a full bounce-back. Barclays attributes this partial recovery to a broader trend of declining consumer spending.
Despite restaurants typically being shielded from the direct impacts of tariffs on their supply chain, the firm indicates that this will not prevent a downturn in demand. This trend is becoming evident as consumer spending eases, potentially affecting future performance in the restaurant sector, including Yum! Brands.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Yum Brands Inc (YUM, Financial) is $155.45 with a high estimate of $185.00 and a low estimate of $138.00. The average target implies an upside of 10.63% from the current price of $140.51. More detailed estimate data can be found on the Yum Brands Inc (YUM) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, Yum Brands Inc's (YUM, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Yum Brands Inc (YUM, Financial) in one year is $156.74, suggesting a upside of 11.55% from the current price of $140.51. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Yum Brands Inc (YUM) Summary page.
