Here’s What Analysts Say on Yum! Brands (YUM) Amid Pizza Hut Review

Core Viewpoint - Yum! Brands, Inc. is exploring strategic options for its Pizza Hut business, which could impact its growth outlook and investor confidence [1][2][3]. Group 1: Analyst Ratings and Price Targets - Stifel has reiterated its Hold rating on Yum! Brands with a price target of $160, indicating a cautious outlook as the company reviews its Pizza Hut operations [1]. - Piper Sandler has reaffirmed its Neutral rating with a price target of $158, suggesting that a complete sale of Pizza Hut could be dilutive to earnings [4]. Group 2: Strategic Review and Growth Potential - Stifel's analysis suggests that divesting Pizza Hut could enhance the company's growth outlook by removing a source of underperformance risk, although it may lead to lower absolute earnings [2]. - The strategic review under the new CEO is seen as a serious effort to boost shareholder value, with Stifel indicating a more constructive view on Yum! Brands [3]. Group 3: Market Sentiment and Valuation - Piper Sandler expressed skepticism about the potential for multiple expansion following a divestment, noting that any valuation gains from such a move may already be reflected in the stock price [5]. - The overall sentiment among analysts is mixed, with some believing that the potential benefits of divesting Pizza Hut are uncertain and may not lead to significant valuation improvements [5].