YUM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Yum! Brands Inc (YUM) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company shows solid financial performance and has positive growth potential, insider selling and mixed analyst ratings suggest caution. The stock is better suited for monitoring rather than immediate investment.
The technical indicators show a bullish trend with MACD positively expanding, moving averages in a bullish alignment (SMA_5 > SMA_20 > SMA_200), and the RSI at 73.148 in the neutral zone. The stock is trading near its resistance level of 164.148, suggesting limited immediate upside potential.
Strong Q4 financial performance with revenue up 6.44% YoY, net income up 26.48% YoY, and EPS up 29.05% YoY.
Positive momentum in Taco Bell and KFC International segments.
Potential strategic review and sale of Pizza Hut, which could unlock value.
Insider selling has increased significantly by 4482.57% over the last month, signaling potential lack of confidence from insiders.
Mixed analyst ratings with several firms maintaining Neutral or Market Perform ratings, citing range-bound stock potential.
Gross margin declined by 1.46% YoY, indicating potential cost pressures.
In Q4 2025, Yum! Brands reported strong financial growth with revenue of $2.514 billion (+6.44% YoY), net income of $535 million (+26.48% YoY), and EPS of $1.91 (+29.05% YoY). However, gross margin dropped to 44.51% (-1.46% YoY), reflecting some cost challenges.
Analyst sentiment is mixed. Guggenheim raised the price target to $180 with a Buy rating, citing potential value from a Pizza Hut sale. However, firms like BofA, Citi, and Wells Fargo maintain Neutral or Equal Weight ratings, citing range-bound potential and uncertainties around the Pizza Hut review.
