Yum! Brands Authorizes $2B Stock Buyback; Will Pay Quarterly Dividend of $0.50


Yum! Brands Inc. (YUM) has announced a quarterly dividend of $0.50 per common share.

The dividend is payable on June 11 to shareholders of record as of May 28.

Additionally, the company has announced a new stock buyback program of up to $2 billion. This program will run from July 1, 2021, to December 31, 2022.

Yum has an earlier-authorized stock buyback program which expires at the end of June. This program is not expected to be utilized completely, as Yum had temporarily suspended it in 2020 in response to the COVID-19 pandemic. (See Yum! Brands stock analysis on TipRanks)

Yum! Brands has a global footprint with a presence in over 150 countries through more than 50 thousand restaurants. Its portfolio of brands includes KFC, Pizza Hut, Taco Bell as well as Habit Burger Grill.

On April 29, Credit Suisse analyst Lauren Silberman reiterated a Hold rating on the stock but raised the price target to $120 from $108.

Silberman likes the Yum! Brands story, and she thinks the timing of a return to unit growth is gaining more visibility.

Based on 8 Buys and 9 Holds, consensus on the Street is that Yum! Brands is a Moderate Buy. The average analyst price target of $124.31 implies the stock is fairly priced. Shares have gained about 41.5% over the past year.

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