Mezvinsky Scott sold $33K of YUM

RBC raised Yum! Brands' (YUM) price target to $180, citing Taco Bell's recovery. Taco Bell's Q3 same-store sales declined 4%, beating estimates. KFC's sales missed estimates, but Yum China raised its 2026 location target. YUM reported mixed Q3 2026 results, with EPS beating estimates but revenue missing. The company plans to refinance $1.6B in debt, expecting a 2% earnings headwind. 12 analysts have revised earnings downwards.

Yum! Brands reported Q3 earnings, highlighting Taco Bell's 25% U.S. loyalty membership growth and 20.2% restaurant-level margin. KFC saw 6% system sales growth, with international expansion driving performance. Yum! expects KFC's Q4 margins to range from 21.5% to 23.5%. The company opened 955 new restaurants, excluding Pizza Hut, and plans to expand KFC's modernization strategy globally. Yum! reported $2.1 billion in cash and expects to address $1.6 billion in maturing debt by mid-2024.

Yum Brands reported a 4% drop in Taco Bell's same-store sales, worse than expected, due to a cyclosporiasis outbreak. Foot traffic fell 20% at its peak. CEO Turner noted recovery since September. Overall, Yum's same-store sales were flat, missing estimates. Operating profit rose to $2.32B, boosted by Pizza Hut's sale.

KeyBanc maintained a Sector Weight rating on Yum! Brands (YUM) after its Q3 earnings beat, citing attractive valuation metrics. YUM reported adjusted EPS of $1.56, exceeding estimates, but revenue missed at $2.05B. Taco Bell and KFC saw comparable sales of -4% and +1%, respectively. KeyBanc adjusted its EPS estimates downward for Q4 and fiscal 2027, focusing on Taco Bell's recovery.

Yum Brands (YUM) reported Q3 2026 earnings, highlighting Taco Bell's recovery and KFC's global strategy. Taco Bell U.S. same-store sales improved, while KFC saw 6% system sales growth. KFC International grew 9%, with strong performance in the Middle East and India. Taco Bell's international sales rose 5%, and it plans new promotions. KFC China and U.S. faced challenges. Habit Burger & Grill saw 3% system sales growth.

Taco Bell's loyalty program, part of Yum Brands, aided recovery from a Cyclospora outbreak, with loyalty members returning twice as fast as non-members. Membership grew 25% YoY. Despite this, Q3 same-restaurant sales fell 4% and systemwide sales declined 2% to $4.3B. Taco Bell's AI-powered drive-thrus show promise, with improved satisfaction and sales.