2023-06-09 08:17:54 ET
Cowen walked away positive on Yum! Brands ( NYSE: YUM ) after digesting the company's presentation at the firm's Future of the Consumer Conference this week.
After talking to top Yum! ( YUM ) execs, Cowen analyst Andrew Charles and team continue to view Taco Bell as the crown jewel of Yum's portfolio. The U.S. business is expected to continue to benefit from a multi-pronged strategy focused on menu innovation, digital unlocks, brand buzz, as well as the heightened interest of consumers in value offerings. Recent proprietary survey data from Cowen indicated the value perception of Taco Bell should help it ride out rough stretches with the U.S. economy.
In the near term, the Taco Bell chain is seen creating some extra buzz with the reintroduction of the Volcano Menu later this month. Down the road, the Taco Tuesday collaboration with Lebron James is said to present an opportunity once trademark resolution with privately held Taco John’s is resolved. Extended operating hours also present opportunities for Taco Bell to boost same-store sales this year.
Overall, Cowen models for Yum! Brands ( YUM ) to grow its restaurant base by 5.5% from 2023 to 2025 on a net basis vs. the consensus estimate for unit growth of 5.3%, 5.3%, and 5.2% by year.
Cowen has an Outperform rating on YUM and price target of $155.
Shares of Yum! Brands ( YUM ) have dipped by about 3% over the last six weeks and trade right at their 100-day moving average.
More on Yum! Brands:
- Yum! Brands: Sumptuous Fundamentals Giving Hearty Returns But Overvalued
- Yum! Tasty EPS Growth Baked In, Hold On Valuation And Technicals
- Taco Bell is testing consumer reaction to a vegan Crunchwrap amid rising demand
- Dividend grades on Yum! Brands
- Yum! Brands compared to sector peers
- Seeking Alpha's Quant Rating for Yum! Brands
For further details see:
Taco Bell is called Yum! Brands' crown jewel for good economic times and bad