It’s ‘Fiesta Time’ for Yum! Brands Stock (YUM), says Top Analyst

Investors have been urged to join the fiesta at Yum! Brands YUM +0.58% ▲ as demand for iced coffee and energy drinks powers it to stellar sales growth by 2030.

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Value and Innovation

Analyst Andrew Charles of TD Cowen reiterated his Buy rating and $180 price target for the group, whose brands include KFC, Taco Bell and Pizza Hut.

Charles said, following a meeting with management, that he was “particularly excited about the brand’s ability to marry value & menu innovation, supported by strong marketing”.

He said that Taco Bell was the ‘crown jewel’ in the company’s portfolio and that its target of hitting $3 million of sales volumes by 2030 from $2.4 million at the end of 2025 was “more achievable”. This would be driven by “world class marketing and improving operations”.

YUM is also forecasting that its beverages division will grow to a $5 billion category by 2030, compared to $2.75 billion in 2025. “Our math suggests a burgeoning and on-trend iced coffee and energy business will grow to $1.2 billion within the 2030 forecast,” said Charles. “The target is expected to be reached via a two-pronged strategy, namely Live Mas Cafes within Taco Bell restaurants and exporting strong performing items from the cafes to the overall system.”

Let’s Go Live

Live Más Cafés are situated inside its existing restaurants, with special beverages ranging from frozen coffees to lemonades and energy drinks and are aimed at a younger audience. Customers order at kiosks and watch “bellristas” assemble their drinks from behind the counter.

There are 38 Live Más Cafés in California & Texas which, Charles said, lead to a double-digit increase in customer traffic. TD Cowen expects the group to rapidly scale the concept beginning in 2027 or 2028.

“In our view, figuring out coffee offerings will be critical to the brand’s plan to relaunch breakfast before 2030, which TB allowed franchisees to pare back in 2024 as the prior menu did not align with branding standards. While not on the strategic roadmap, solidifying the breakfast strategy opens the door to 24-hour operations,” Charles said.

Is YUM a Good Stock to Buy Now?

On TipRanks, YUM has a Moderate Buy consensus based on 6 Buy and 11 Hold ratings. Its highest price target is $190. YUM stock’s consensus price target is $173.75, implying a 10.73% upside.

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