Yum! Brands (YUM) PT Lowered to $155 at Wells Fargo

Wells Fargo analyst Roger Read lowered the price target on Yum! Brands (NYSE: YUM) to $155.00 (from $160.00) while maintaining a Equal Weight rating.

The analyst comments ""YUM responding; 2H not w/o risk. Q2's shortfall (~30bps comp miss, EBIT -40bps, EPS -2c vs St) shouldn't surprise, but we see reason for 2H optimism as YUM responds across its portfolio (TB innovation/loyalty, KFC mktg, PH promo). But YUM's Op Profit remains an overhang, as higher G&A means less wiggle room, July likely started softer (across the industry) and '26 units still lack clarity. All in, LT defensive growth appears intact, but absent stronger NT trends, we see shares range bound today. Top takes. 1) Global comps of +2% were -30bps shy of St. & -100bps vs. Q1; 2) TB of +4% took share but slowed ~500bps vs. Q1 (w/ gains driven by Crispy Chicken, Refrescas, value, etc.); July likely slowed post-Snack Wrap but Q3/Q4 levers step up; 3) TB grew across income cohorts w/ signs of Fast Casual trade in (a -CMG read); 4) KFC comped ~flat q/q at +2%, w/ Int'l stable, China +100bps q/q to +3%, but US -5%; 5) PH comp -1% (Int'l +2% / US -5%); 6) Q2 total NUG +3% y/y vs. FY25 guide of 4%+."

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