Barclays Maintains an 'Equalweight' on Yum! Brands (YUM); 2012 Guidance & 2011 Conference Preview

Barclays maintains an 'Equalweight' on Yum! Brands (NYSE: YUM) price target of $54.00.

Barclays analyst says, "YUM will issue their initial 2012 guidance on 12/5, followed by their annual Investor Conference in NYC on 12/7. Looking to 2012, we expect focus on strength / resilience of the global portfolio, led by China, culminating in 10%+ EPS growth. This would mark the 11th straight year of such growth, with investors justifiably paying a premium for the consistency. With that said, we see limited near-term outperformance as Taco Bell US remains weak, and the China comp strength is mitigated by further inflation. The China growth opportunity remains impressive, though we believe YUM fairly valued given short-term pressures... 18x forward vs the 12-19x 3-year range and 16.5x average."

"Specific to comps, we expect 8% in China, 3% at YRI and 1% in the US, with all 3 US brands modestly positive. Long-term guidance remains for profit growth of 15% in China, 10% in YRI & 5% in US (only achieved once in past 9 years)."

For an analyst ratings summary and ratings history on Yum! Brands click here. For more ratings news on Yum! Brands click here.

Shares of Yum! Brands closed at $56.29 yesterday.

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