Yum! Brands, Inc.NYSE
Wed, Oct. 19, 11:41 AM
- Credit Suisse upgrades Yum Brands (YUM +1.1%) to Outperform from Neutral on a positive long-term view of the restaurant stock.
- Analyst Jason West cites Yum's "balanced portfolio" across the globe and relatively low sensitivity to same-store sales and cost input shocks.
- CS assigns a price target of $96 vs. Yum's 52-week high of $91.99.
Tue, Oct. 18, 5:57 PM
- Domino's Pizza (NYSE:DPZ) jumped to a 52-week high on the way to close nearly 5% higher today, after reporting a 13% increase in Q3 U.S. sales from a year earlier, far outpacing rival Pizza Hut (NYSE:YUM) and bucking the broader restaurant industry trend of weakening sales.
- For the first time in the company's history, DPZ is bringing in more sales through smartphones, watches, virtual assistants and other digital channels than from diners walking into stores or phoning in orders; BofA Merrill estimates 55% of its sales were digital in Q3, vs. just 20% for the restaurant industry.
- Some Wall Street analysts have started to assign DPZ tech-style stock price targets based on the rapid growth of its digital sales, and Bloomberg's Shelly Banjo says 63% of analysts covering the company have raised their price targets in the past month.
Mon, Oct. 17, 1:18 PM
- Same-store restaurant sales were negative for the fourth consecutive month in September, with a drop of 1.1%, according to data from Black Box Intelligence.
- Same-store traffic was 3.5% lower Y/Y during the month. Higher prices partially offset the traffic decline.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST, WING, BOJA, ZOES, FOGO, ARCO, SHAK, YUM.
- Related ETF: BITE.
Fri, Oct. 14, 2:54 PM
- Piper Jaffray is out with the results of its annual Taking Stock With Teens Survey. The top brands listed by the 10K teens included in the survey are posted below.
- Top clothing brands: Nike (NYSE:NKE) 29%, American Eagle Outfitters (NYSE:AEO) 9%, Forever 21 5%, Ralph Lauren (NYSE:RL) 4%, Urban Outfitters (NASDAQ:URBN) 3%.
- Top handbag brands: Michael Kors (NYSE:KORS) 34%, Kate Spade (NYSE:KATE) 19%, Coach (NYSE:COH) 10%, Louis Vuitton (OTCPK:LVMHF) 5%, Longchamp Vera Bradley (NASDAQ:VRA) 3%.
- Top footwear brands: Nike 51%, Vans (NYSE:VFC) 9%, Converse 7%, Adidas (OTCQX:ADDYY) 6%, Steven Madden (NASDAQ:SHOO) 2%.
- Top restaurant chains: Starbucks (NASDAQ:SBUX) 14%, Chipotle (NYSE:CMG) 11%, Chick-fil-A 10%, Taco Bell (NYSE:YUM) 3%, Panera Bread (NASDAQ:PNRA) 3%, McDonald's (NYSE:MCD) 3%, Olive Garden (NYSE:DRI) 3%.
- Nothing earth-shattering in the tech results, dominating teen mindspace are Snapchat (Private:CHAT), YouTube, Instagram and Netflix (NASDAQ:NFLX).
Tue, Oct. 11, 11:30 AM
- Yum Brands (YUM +1.9%) management discussed its goals for Taco Bell during its investor day event today.
- The company plans to have 8K stores in the U.S. by the end of 2022, from a current level of 6,975 units.
- Globally, Taco Bell is shooting for 1K stores across 40 nations before 2022.
- Yum Brands Investor & Analyst Conference webcast
- Yum Brands strategy update (.pdf)
- Previously: Highlights from the Yum Brands investor day event (Oct. 11)
Tue, Oct. 11, 8:24 AM
- Yum Brands (NYSE:YUM) expects to return up to $13.5B to shareholders before 2019 after it completes the separation of the China business.
- The company also backs a goal to be 98% franchised by the end of FY18. A slimmer Yum Brands will also lead to efficiency gains. Management expects to cut capex spending to ~$100M by FY19 and reduce G&A expenditures by ~$300M.
- Yum CEO Greg Creed on strategy: "We will reinforce the distinctiveness of our brands and their relevance to customers, select the highest potential franchisees and help drive their success, expand more profitably in key markets across the globe."
- The new CEO of Yum China (Pending:YUMC) also updated on post-split plans.
- "At separation, we will be operating a highly cash-generative business, with no external debt and ample cash on hand. This will enable us to invest in new restaurants, digital engagement and our delivery network, providing job opportunities to thousands more people across the country and contributing to economic growth," said Micky Pant.
- Yum China thinks it has the potential to triple the number of units it runs in China over the long term.
- Yum Brands Investor & Analyst Conference webcast
- Yum Brands strategy update (.pdf)
- YUM +1.21% premarket to $88.45.
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Thu, Oct. 6, 9:24 AM
- Yum Brands (NYSE:YUM) slips after results in China during Q3 disappointed. Comparable sales were down 1% to miss the 4% gain expected by analysts. Yum management said resentment against Western companies amid the ongoing territorial dispute in the South China Sea played a factor.
- The news was better in the U.S. where the KFC chain saw a 6% increase in comparable sales. U.S. operating profit improved 11% Y/Y during the quarter.
- The company confirmed that Yum China (Pending:YUMC) will begin trading on November 1.
- Previously: Yum! Brands EPS in-line, misses on revenue (Oct. 5)
- YUM -2.29% premarket to $86.59.
Wed, Oct. 5, 5:35 PM
Wed, Oct. 5, 4:16 PM
Tue, Oct. 4, 5:35 PM
Tue, Oct. 4, 5:06 AM
- Don't spill your coffee in excitement, but it's National Taco Day today.
- The holiday coincides with the introduction today by Chipotle (NYSE:CMG) of chorizo in all U.S. restaurants. Chipotle's summer loyalty program and several promotions aimed at kids ended in September, with the restaurant operator desperately looking to return to some normal pricing.
- The intense competitive cadence from Chipotle has impacted other Mexican food chains such as Taco Bell (NYSE:YUM), Del Taco (NASDAQ:TACO), El Pollo Loco (NASDAQ:LOCO), Chevy's Fresh Mex (private), and Qdoba (NASDAQ:JACK). That group is also looking to improve their average ticket at restaurants through higher prices.
Mon, Sep. 26, 9:40 AM
Mon, Sep. 26, 9:29 AM
- The board at Yum Brands (NYSE:YUM) formally approved the previously announced separation of the company's China business.
- The separation of Yum China Holdings (Pending:YUMC) is expected to occur after the close of business on October 31.
- "We are moving full steam ahead with the separation of Yum China, establishing two powerful, independent and focused growth companies dedicated to building on our brand strengths and unlocking the full value of each business for our shareholders," says Yum CEO Greg Creed.
- Source: Press Release
Fri, Sep. 23, 9:09 AM
- With YUM higher by 24% YTD, outperforming the S&P 500 by 1,700 basis points and "our coverage universe" by 2,700 basis points, RBC's David Palmer downgrades to Outperform from Top Pick. The $97 price target is maintained.
- That $97 is based on $63 in value for the New Yum and $34 for Yum China, and there could be upside if Yum China continues brand recovery in KFC and Pizza Hut. There's also upside if Yum Brands continues to generate higher free cash flow and accelerating revenue growth through refranchising, new franchising deals, improved Pizza Hut marketing, and G&A reductions.
Wed, Sep. 21, 7:16 AM
- Yum China (Pending:YUMC) files with the SEC to issue 10M shares for holders of Yum Brands (NYSE:YUM).
- The new company expects to raise $54.05M which implies a maximum offering price of $5.405 per Yum China share.
- Looking ahead, Yum China says its development pipeline is robust enough to help the company increase its restaurant count three times over the next two to three decades.
- SEC Form S-1