Quick service restaurant operator Yum! Brands, Inc. (
) on Monday caught a big downgrade from analysts at Raymond
The firm said it cut its rating on YUM from "Outperform" to
"Market Perform." The analyst noted a slowdown in the Chinese
economy "raises real concerns about Yum given 50 percent of its
profit comes from company-owned stores in China." Continuing,
"Manufacturing is an important part of income for consumers and an
increasing amount of that income has been going to purchase meals
at KFC in China."
Yum! Brands, which operates the KFC, Pizza Hut, and Taco bell
fast food chains, saw its shares fall 89 cents, or -1.4%, in
premarket trading Monday.
The Bottom Line
Shares of Yum Brands (
) have a 1.76% dividend yield, based on Friday's closing stock
price of $64.70. The stock has technical support in the $60 price
area. If the shares can firm up, we see overhead resistance around
the $68-$70 price levels.
Yum! Brands, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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