Goldman Sachs Upgrades Yum! Brands (YUM) Stock to Buy, Maintains PT

On June 4, Goldman Sachs upped Yum! Brands, Inc. (NYSE:YUM)’s stock to “Buy” from “Neutral,” while the price target remains unchanged at $167, as reported by The Fly.

A chef in a kitchen preparing a fast food meal of chicken, pizza and burgers.

The analysts believe that the company remains better placed compared to its peers to grow and handle challenges in the broader restaurant industry. The firm also highlighted its best-in-class unit growth trajectory and high franchise mix.

As per the analyst, the mix builds relative resilience in Yum! Brands, Inc. (NYSE:YUM)’s business. Furthermore, the firm opines that the company continues to see improvement in digital integration throughout brands and at the enterprise level to enhance operational efficiency and to fuel sales acceleration.

Notably, Byte by Yum! has been driving digital momentum, with more franchisees ready to explore the full suite of product offerings. Talking about Q1 2025 highlights, Yum! Brands, Inc. (NYSE:YUM) stated that the digital system sales are approaching $9 billion.

Goldman Sachs stated that investors remain focused on companies capable of growing via changes they make themselves, like better menus or operations, instead of relying on a robust economy. In this group, Yum! Brands, Inc. (NYSE:YUM) stands out.

Yum! Brands, Inc. (NYSE:YUM) is engaged in developing, operating, and franchising quick-service restaurants.

While we acknowledge the potential of YUM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than YUM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.