Yum! Brands stock got a rating downgrade from analysts at Argus Research.
Argus analyst John Staszak lowered his rating on Yum! to hold from buy, with a price target of $120 a share.
Staszak expects Yum Brands’ Pizza Hut sales to be flat through 2020. The analyst cited competition from delivery services GrubHub and UberEats and the company's decision to place a greater emphasis on off-premise orders(as report by Bloomberg ). Yum’s other brand KFC has strong competition from Chick-fil-A and Popeyes.
Analysts at Argus also lowered their 2019 earnings estimates for Yum to $3.75, compared to price forecast of $3.80. For 2020, Argus projects $4.20 a share, down from prior estimate of $4.30 (according to Bloomberg report).