Shares of Yum! Brands, Inc. (NYSE:YUM) tanked in early trading on Wednesday, after the company reported downbeat third-quarter earnings.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

TD Cowen On Yum! Brands

Analyst Andrew Charles maintained a Hold rating and price target of $145.

Management said that Taco Bell momentum had continued into the fourth quarter, driven in part by Cheesy Street Chalupas, the relaunch of the Cheeze-It platform and the $7 Luxe Craving Box, Charles said in a note. He raised the segment's same-store sales estimate for the quarter from 3% to 4%.

Yum! Brands guided to 4.5%-5% net restaurant development in 2024, versus consensus of 5%, attributing the lower guidance to "temporarily high closures in the Middle East impacted regions," the analyst stated. He added, however, that "net openings have been slowing across key development regions."

Check out other analyst stock ratings.

KeyBanc Capital Markets On Yum! Brands

Analyst Eric Gonzalez reaffirmed a Sector Weight rating on the stock.

The company's consolidated global same-store sales declined by 2%, missing market expectations, Gonzalez said. Taco Bell recorded 4% same-store sales growth, outperforming consensus of 3.1%, while same-store sales at both KFC and Pizza Hut declined by 4% each, more steeply than expected, he added.

"For KFC and Pizza Hut, the combination of ongoing geopolitical headwinds in various markets (e.g., Middle East, Indonesia, and Malaysia), macro pressure in China, and increasing value competition in the brands’ respective categories led to the SSS shortfall in the quarter," the analyst wrote. Store closures could accelerate in the fourth quarter, mainly due to tensions in the Middle East, he further stated.

YUM Price Action: Shares of Yum! Brands were down 1.2% to $132.99 at the time of publication on Wednesday.

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