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Yahoo
2 days ago
- Business
- Yahoo
Yum! Brands Upgraded to Buy as Taco Bell Drives Global Growth
Yum! Brands Inc. (NYSE:YUM) ranks among the best consumer discretionary stocks to buy now. Redburn-Atlantic upgraded Yum! Brands Inc. (NYSE:YUM) from Neutral to Buy on June 10 while raising the stock's price target from $145 to $177. Jeramey Lende/ Chris Luyckx of Redburn-Atlantic cited Taco Bell's outstanding performance and Yum! Brands' strong global presence as major factors in the company's success. Luyckx claims that Yum! Brands Inc. (NYSE:YUM) stands out in the industry owing to its growth potential and defensive resiliency. The analyst also noted that Taco Bell US and KFC International make significant contributions to the company's EBIT. Furthermore, Luyckx cited Yum! Brands' strategic initiatives, which are expected to support the company's growth trajectory. These include its diverse restaurant formats, its robust master franchise system, and its digital acceleration program, Byte. Yum! Brands Inc. (NYSE:YUM) is an American multinational fast food corporation that operates well-known brands like KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill. While we acknowledge the potential of YUM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None.
Yahoo
2 days ago
- Business
- Yahoo
Redburn-Atlantic Initiates 'Sell' Rating on Domino's Pizza (DPZ) Due to Weak Organic Traffic and Profit Margin Concerns
Domino's Pizza, Inc. (NASDAQ:DPZ) is one of the 11 best performing Warren Buffett stocks in 2025. On June 10, Redburn-Atlantic initiated coverage on the company's stock with a 'Sell' rating. The firm also set its price target for Domino's Pizza's shares at $340.00. Jonathan Weiss/ According to a research note, Redburn-Atlantic said the basis of their price target is a forward P/E multiple of 19.7 times based on the firm's estimated 2025 earnings. The analysts also noted that Domino's Pizza's carryout orders significantly outperform delivery orders. While this trend could support sales volumes, the analysts added, it may also lead to reduced profit margins for the company. Several other issues stick out in the analysts' perspective. First, they point out weak organic traffic. They highlighted that Domino's is experiencing weak organic traffic. Second, Redburn-Atlantic indicated that Domino's business model highly relies on lower-income consumers. As a result, the firm concluded that the growth of system sales for Domino's is under threat. Domino's Pizza, Inc. (NASDAQ:DPZ) is a global restaurant operator and franchisor. It offers pizzas and other food items like wings, sandwiches, pasta, and desserts under the Domino's brand. The company operates through three segments: US Stores, International Franchise, and Supply Chain. It serves customers through nearly 19,000 stores across more than 90 countries. While we acknowledge the potential of DPZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Time of India
11-06-2025
- Business
- Time of India
McDonald's downgraded amid Ozempic craze - investors worry fast food losing charm, stock under pressure
McDonald's stock was downgraded by analysts following concerns that weight-loss drugs like Ozempic could curb fast-food demand. Analysts suggested that these drugs, which reduce appetite, might lead to a significant drop in customer visits, potentially costing the company millions in revenue. Tired of too many ads? Remove Ads Equity Firm Downgrades McDonald's Stock How GLP-1 Medications Could Disrupt Fast Food Demand McDonald's Potential Revenue Losses and Customer Visit Declines Tired of too many ads? Remove Ads Inflation Adds Fuel to McDonald's Challenges Not Many Americans Are Using These Drugs Yet FAQs McDonald's faced a rough day on Wall Street Tuesday as shares dipped 1.7%, shaken by growing concerns that popular weight-loss drugs like Ozempic could seriously cut into the fast food giant's business, as per a analysis firm Redburn Atlantic lowered its rating on McDonald's stock by two notches from 'buy' to 'sell,' warning that the widespread use of GLP-1 drugs, which curb appetite and help regulate blood sugar, may change how Americans eat, potentially leading to a drop in millions of visits to McDonald's every year, as per CBS Redburn analysis described GLP-1 drugs like Ozempic and Wegovy as "demand disruptors" for restaurants like McDonald's , as they reduce consumers' appetites and limit the number of calories they consume each day, reported CBS News. Analysts wrote that, "These features of the drugs could have serious implications for the restaurant industry," according to the READ: YouTube loosens content rules, says freedom of expression can outweigh harm—controversial videos may return Analysts Chris Luyckx and Edward Lewis estimated that McDonald's could lose up to 28 million customer visits annually, resulting in nearly $482 million in lost revenue, roughly 0.9% of the company's sales, according to the concern is that GLP-1 drugs may shift eating habits, especially among lower-income consumers, who are the fast food chain's target market and who might cut back on dining out and keep those new habits long-term, as per CBS analysts pointed out that the "Behaviour changes extend beyond the individual user — reshaping group dining, influencing household routines and softening habitual demand. A 1% drag today could easily build to 10% or more over time, particularly for brands skewed toward lower income consumers or group occasions," quoted CBS to the pressure, rising prices and inflation might make it even harder for McDonald's to maintain its appeal to its customers, as per the report. The analysts highlighted that, "Consumers are showing clear signs of pricing fatigue after years of aggressive menu inflation," adding, "Although the gap between eating out and at home has narrowed, it remains historically wide, reinforcing value concerns," quoted CBS the adoption of the GLP-1 drugs has yet to reach a wider audience, as only 12% of Americans have tried the drugs, and currently just 6% of the adult population uses them, as per the the managing director and restaurant and food distributors analyst at BTIG global financial services, Peter Saleh said, "I don't think there would be a meaningful GLP-1 impact on McDonald's right now, but that's not to say that in three or four years that won't be the case," adding, "I just don't think we are there yet," quoted CBS medications that help regulate blood sugar and suppress appetite, often used for weight loss, as per to $482 million a year, according to some analysts.
Yahoo
11-06-2025
- Business
- Yahoo
Redburn upgrades Yum! Brands to Buy on international footprint
Redburn Atlantic upgraded Yum! Brands (YUM) to Buy from Neutral with a price target of $177, up from $146. The firm says Yum 'presents one of the most compelling setups' in its coverage. With an international footprint that continues to scale and Taco Bell delivering 'outsized' profit and innovation, Yum 'offers both defensive resilience and offensive optionality,' the analyst tells investors in a research note. Redburn believes the company's digital acceleration, diversified formats and 'strong' master franchise system further strengthen its growth algorithm. Yum's valuation looks attractive relative to its fundamentals, the firm contends. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on YUM: Disclaimer & DisclosureReport an Issue Yum! Brands upgraded to Buy from Neutral at Redburn Atlantic Yum! Brands sues IRS in tax court over $4B tax bill, Bloomberg says Trump says Fed 'must now' lower rates after ADP payrolls report: Morning Buzz Apple downgraded, Snowflake upgraded: Wall Street's top analyst calls Yum! Brands upgraded to Buy from Neutral at Goldman Sachs Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
Redburn starts Domino's with Sell on heavy GLP-1 exposure
As previously reported, Redburn Atlantic initiated coverage of Domino's Pizza (DPZ) with a Sell rating and $340 price target Domino's faces the heaviest pressure from GLP-1 weight loss drug adoption, with high exposure to dinner occasions and lower-income consumers, the analyst tells investors in a research note. The firm says the company's organic traffic remains weak, with carryout far outpacing delivery. With system sales growth challenged and consensus expectations still elevated, there is downside risk for Domino's, contends Redburn. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on DPZ: Disclaimer & DisclosureReport an Issue Domino's Pizza initiated with a Sell at Redburn Atlantic Domino's Pizza: Strategic Initiatives and Market Positioning Justify Buy Rating Coca-Cola Stock (KO) Remains a Berkshire Hathaway Favorite Domino's Pizza: Balancing Growth Opportunities and Profitability Challenges Amidst Aggressive Market Environment Berkshire Hathaway exits positions in Citigroup, Nubank
