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The other half of the Einhorn Chipotle thesis, Yum Brands (YUM), snoozes the news that Chipotle...

The other half of the Einhorn Chipotle thesis, Yum Brands (YUM), snoozes the news that Chipotle expects subdued growth for next year, trading flat AH. Though Einhorn finds YUM pricey and says he isn't long, traders are starting to wonder if maybe a surge in Taco Bell sales won't feed the company's bottom line after all.
Comments (4)
  • The Enterprising Value Inve...
    , contributor
    Comments (515) | Send Message
     
    Well since 90% of YUM restaurants in the US are franchised, those traders who think that share gains at Taco Bell will benefit YUM's bottom-line are idiots. Any share shift in the US will moderately benefit YUM's profits if at all.
    18 Oct 2012, 04:58 PM Reply Like
  • YumCynic
    , contributor
    Comments (2) | Send Message
     
    Yum's US Taco Bell business is the least franchised of their US concepts (offhand I can't recall exactly) but their equity ownership proportion is significantly greater than for KFC or Pizza Hut. Any TB wins will be enjoyed by Yum's bottom line.
    19 Oct 2012, 12:31 AM Reply Like
  • YumCynic
    , contributor
    Comments (2) | Send Message
     
    Taco Bell is the least franchised of Yum's US businesses so there will be a definite flow to the bottom line if TB keeps winning.
    19 Oct 2012, 12:31 AM Reply Like
  • micunca
    , contributor
    Comment (1) | Send Message
     
    And YUM reported flatish China sales last quarter, despite openning additional stores in china, which translates to negative growth in China.
    19 Oct 2012, 01:35 AM Reply Like
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