Yum Brands Inc. (NYSE:YUM) Chief Executive Officer David W. Gibbs recently sold shares of the company's common stock, according to a filing with the Securities and Exchange Commission. On December 16, Gibbs sold a total of 3,815 shares at an average price of $137.06 per share, amounting to approximately $522,883. The transaction occurred near the stock's 52-week high of $143.20, with YUM currently commanding a market capitalization of $38.1 billion. According to InvestingPro analysis, the stock has demonstrated relatively low price volatility, making this insider transaction particularly noteworthy.
In addition to the sale, Gibbs executed a series of transactions, including the acquisition of 6,196 shares through the exercise of stock appreciation rights at a price of $52.64 per share. This transaction was conducted under a 10b5-1 trading plan adopted on December 1, 2023.
Following these transactions, Gibbs holds 149,385 shares of Yum Brands directly. Additionally, he maintains indirect ownership of 39,499 shares through a trust labeled DWG and 26,394 shares through a trust labeled SJG.
In other recent news, Yum! Brands (NYSE:YUM) has seen a variety of developments. Bernstein, a market analysis firm, noted caution for restaurant concepts with significant international exposure, including Yum! Brands, due to the current state of the U.S. restaurant sector. Despite this, the firm expressed a preference for Yum! Brands, suggesting that its relatively lower valuation may already reflect negative market sentiment.
Meanwhile, Guggenheim maintained a positive outlook on Yum! Brands, raising the stock's price target to $155 from the previous target of $150. The firm's analyst cited an analysis of KFC's global performance in 2024 as the basis for the revised target. The firm adjusted its 2025 earnings per share (EPS) estimate for Yum! Brands to $6.05 from the earlier forecast of $6.25, reflecting confidence in the company's long-term growth potential.
Yum! Brands also announced a quarterly dividend of $0.67 per share of common stock, payable to shareholders of record in December. The company reported a 3% year-over-year profit growth in its third quarter, driven by strong performance at Taco Bell U.S. and KFC International. However, Pizza Hut experienced a 1% decline in system sales due to competitive pressures.
In its third-quarter earnings call, Yum! Brands reported a 3% year-over-year increase in profits, driven by strong performance at Taco Bell U.S. and KFC International. The company expects Q4 core operating profit growth in the mid-to-high single digits, with Taco Bell margins forecasted at 23% to 24%. The company also announced several initiatives to drive growth, including the expansion of AI-driven technologies and loyalty programs.
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