Yum! Brands: 4 Different Insiders Have Sold Shares This Month

Feb.24.14 | About: Yum! Brands, (YUM)

In this article, I will feature one restaurant that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Yum! Brands (NYSE:YUM) operates quick service restaurants in the United States and internationally.

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Insider selling during the last 30 days

Here is a table of Yum! Brands' insider-trading activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Christain Campbell SVP Feb 19 13,157 Yes 13,288 shares 49.8%
Richard Carucci President Feb 13 78,048 No 34,098 shares 69.6%
Patrick Grismer CFO Feb 5 1,770 Yes 17,840 shares + 8,316 options 6.3%
Jonathan Blum SVP Feb 5 3,664 Yes 22,131 shares + 83,394 options 3.4%
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There have been 96,639 shares sold by insiders during the last 30 days. Christain Campbell, Patrick Grismer, and Jonathan Blum sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Yum! Brands' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 96,639 0
January 2014 5,591 0
December 2013 447,094 0
November 2013 94,619 0
October 2013 9,231 20,000
September 2013 6,988 0
August 2013 13,661 0
July 2013 10,358 0
June 2013 6,912 0
May 2013 9,595 0
April 2013 2,850 0
March 2013 93,464 0
February 2013 3,242 35,000
January 2013 3,244 0
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There have been 803,488 shares sold, and there have been 55,000 shares purchased by insiders since January 2013.


Yum! Brands reported the full-year 2013 financial results on February 3 with the following highlights:

Revenue $13.1 billion
Net income $1.1 billion
Cash $573 million
Debt $3.0 billion
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YUM Revenue (<a href=

Yum! Brands' revenues peaked 12 months ago.


Yum! Brands expects to deliver at least 20% EPS growth in 2014.

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(Source: Investor presentation)


Yum! Brands' competitors include Burger King Worldwide (BKW), McDonald's (NYSE:MCD), and The Wendy's Company (NYSE:WEN). Here is a table comparing these companies.

Market Cap: 32.27B 9.20B 95.97B 3.88B
Employees: 75,460 N/A N/A 44,000
Qtrly Rev Growth (yoy): 0.01 -0.34 0.02 0.01
Revenue: 13.08B 1.15B 28.11B 2.52B
Gross Margin: 0.26 0.70 0.39 0.26
EBITDA: 2.75B 642.60M 10.09B 361.88M
Operating Margin: 0.16 0.50 0.30 0.08
Net Income: 1.09B 233.70M 5.59B 37.83M
EPS: 2.36 0.65 5.55 0.10
P/E: 30.87 40.25 17.38 104.21
PEG (5 yr expected): 1.63 1.75 1.97 1.47
P/S: 2.47 8.00 3.39 1.52
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Yum! Brands, together with Wendy's, has the lowest gross margin among these four companies.

Here is a table of these competitors' insider activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
MCD 0 55,110
WEN 0 210,986
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McDonald's has also seen intensive insider selling during the last 30 days.


There have been four different insiders selling Yum! Brands, and there have not been any insiders buying Yum! Brands during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Yum! Brands has an insider ownership of 0.20%.

Yum! Brands has a $55 price target from the Point and Figure chart. I believe there is an opportunity for a short entry with the $55 price target. I would place a stop loss at $78, which is the all-time high. The three main reasons for the proposed short entry are negative year-over-year revenue growth, bearish Point and Figure chart, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in YUM, MCD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.