The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Yum Brands is trading at $71.75, and the stock is down 13% since it reported its second-quarter figures in July, where revenue and EPS came in better than the average estimates but still missed some of the top-end estimates by a considerable margin.
The larger-than-expected decline in revenue from its Pizza Hut division spooked traders, with the business under increasing pressure from Domino's Pizza Group.
The company own a number of well-known fast food outlets such as KFC and Pizza Hut, which have both suffered negative press after a TV show highlighted improper meat handling in some of its restaurants in China.
Equity analysts are bullish on Yum Brands. Out of the 29 recommendations, 11 are buys and 18 are holds.
The stock gapped lower and seemed to find stability at the $70 level. If the company is confident it can achieve its full-year target the share price could move to $74.82.