Market Update (NYSE:YUM): Yum in talks with KKR, others to sell stake in China unit: WSJ

[Reuters] – The stake values the China business at about $10 billion, the report said. “We continue to make good progress since we announced the transaction separating Yum and Yum China into two,” a Yum Brands spokeswoman said, adding that the company would provide updates on the transaction at appropriate times. The parties exploring offers include KKR, Baring Private Equity Asia and several Chinese funds, the Journal reported, adding that Yum appeared to be intent on selling a 19.9 percent stake to avoid a big tax bill. Read more on this. Yum! Brands, Inc. (YUM) , valued at $32.86B, started the session at $79.10. During the trading session, YUM traded between $78.12 to $81.50 and has traded between $64.58 and $95.90 over the past 12 months. YUM! (YUM) shares are currently priced at 22.31x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 22.94x earnings multiple for the same period. The company pays shareholders $1.84 per share annually in dividends, yielding 2.35%. In a review of the consensus earnings estimate this quarter, 20 sell-side analysts are looking at $0.83 per share, which would be $0.03 better than the year-ago quarter and a $0.01 sequential decrease. What we find to be interesting is that the full-year EPS estimate of $3.54 is a $0.36 better when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $2.66 Billion. If reported, that would be a 1.53% increase over the year-ago quarter. In terms of ratings, Longbow Initiated YUM at Buy (Mar 18, 2016). Previously, Credit Suisse upgraded YUM from Underperform to Neutral. The average price target for YUM shares by the analysts covering the stock is $84.60, which is 6.95% above where the stock opened this morning. See more in (NYSE:YUM) Similar Articles: Market Update: Yum! Brands Inc (NYSE:YUM) – Yum! Brands, Inc. to Present at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum and the Bank of America Merrill Lynch 2016 Consumer & Retail Technology Conference Market Update (NYSE:YUM): Yum! Brands Adopts Nicaragua Community; Launches New Employee “Feed the World Ambassador Program” for World Hunger Relief Market Update: Yum! Brands Inc (NYSE:YUM) – Yum! Brands Launches World Hunger Relief Effort with Global Spokesperson Christina Aguilera in New Public Service Announcement