Goldman Sachs Lowers Numbers on Yum! Brands (YUM) On Developed Market Weakness

Goldman Sachs lowered estimates and its price target on Yum! Brands (NYSE: YUM) from $51 to $50 following an in-depth analysis of the company’s developed market businesses. The firm maintained their Sell rating.

Goldman said they see the potential for prolonged and possibly accelerated weakness in US/Europe, which will offset some of YUM's successes in China and other emerging markets. The firm said investors may be overly optimistic in giving the company a free pass on weak developed market results.

Goldman lowers 2011/2012/2013 estimates to $2.80/$3.15/$3/60 from $2.86/$3.18/$3.65 to reflect lower US/Europe SSS assumptions and a decline in US unit count as franchisees are increasingly likely to exit.

For more ratings news on Yum! Brands click here and for the rating history of Yum! Brands click here.

Shares of Yum! Brands closed at $52.66 yesterday.

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