Yum! Brands Cut to “Market Perform” at Raymond James on China Weakness (YUM)

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Quick service restaurant operator Yum! Brands, Inc. ( YUM ) on Monday caught a big downgrade from analysts at Raymond James.

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 ( YUM ) 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. ( YUM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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