Morgan Stanley downgrades Yum, Buffalo Wild Wings

Yum, Buffalo Wild Wings shares suffer following Morgan Stanley downgrade

Associated Press

Yum Brand Inc. and Buffalo Wild Wings Inc. shares fell Thursday following a downgrade by a Morgan Stanley analyst.

John Glass said in a research note that he is downgrading his rating on Yum, which operates the KFC, Taco Bell and Pizza Hut chains, to "Equal-Weight" from "Overweight". That's the equivalent of moving it from a buy to hold rating.

He said the company's profit recovery goals in China are overly ambitious. Yum's business there suffered in recent years after supply issues and the avian flu hurt its KFC business.

Yum shares fell $1.48, or 1.9 percent, to close at $75.05.

The analyst also downgraded his rating of Buffalo Wild Wings to "Underweight" from "Overweight" given recent gains in its price and slowing expansion. Buffalo Wild Wings shares fell $5.06, or 3.3 percent, to $146.43. They're still up 94 percent over the past 12 months.

He upgraded his rating on McDonald's Corp. to "Overweight." He said Wall Street expectations for earnings growth are low for the fast-food chain and boosted his target price on the shares to $115 from $93. McDonald's shares added 5 cents to $95.46.

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