Jefferies Reiterates Hold on Yum! Brands (YUM) Following 2Q Results

Jefferies reiterates a Hold rating and $76.00 price target on Yum! Brands (NYSE: YUM) following 2Q earnings results. YUM reported 2Q EPS of $0.69 vs consensus of $0.62. The company reiterated 2015 EPS guidance calling for “at least 10% growth”.

Andy Barish commented, "Op EPS $0.69 vs cons $0.62, as cost cuts & better TB SSS offset a China SSS miss (-10% vs cons -8.4%). Guide reiterated for a 2H China recovery and at least +10% EPS for the year, but this will require a significant turn in the China business. While we agree that the potential for significant margin leverage in China is realistic if SSS rebound like the company thinks, our visibility on a big China SSS recovery is fairly limited, keeping us at Hold."

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 $91.99 yesterday.

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