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Yum! Brands, Inc. (YUM)

  • Tue, Oct. 6, 4:42 PM
    • Following its FQ3 miss, YUM expects FY15 (ends in early December) EPS growth to be in the low-single digits, below prior guidance of "at least" 10%. Consensus is for EPS to rise 14% to $3.51.
    • "[T]he pace of recovery in our China Division is below our expectations," says CEO Greg Creed. Pizza Hut Casual Dining was particularly weak. Yum now expects low-single digit negative FY15 Chinese same-store sales growth, with mid-single digit positive FQ4 growth.
    • China division sales rose 8% Y/Y in FQ3 (year-ago sales were weak on account of the OSI scandal), with units rising 7% and same-store sales 2%. Division restaurant margin rose 470 bps to 19.6%, and op. profit 62% to $327M. A new China chief was appointed in August.
    • India was also soft: System sales fell 9% as an 18% drop in same-store sales offset 10% unit growth. The India division had an $8M op. loss vs. $3M a year ago.
    • Globally, system sales rose 6%, and restaurant margin 330 bps to 18.2%. KFC Division sales +6% (3% same-store growth); Pizza Hut +2% (1% same-store growth); Taco Bell +7% (4% same-store growth).
    • Company sales rose 3% to $3B; franchise and license fee revenue fell 1% to $459M. Total costs/expenses fell 1% to $2.8B. $370M has been spent year-to-date in FY15 to repurchase 4.5M shares at an average price of $82.
    • Yum has tumbled to $69.41 after hours.
    • FQ3 results, PR
    | Tue, Oct. 6, 4:42 PM | 16 Comments
  • Tue, Oct. 6, 4:42 PM
    • Yum! Brands (NYSE:YUM) declares $0.46/share quarterly dividend, 12.2% increase from prior dividend of $0.41.
    • Forward yield 2.21%
    • Payable Nov. 6; for shareholders of record Oct. 16; ex-div Oct. 14.
    | Tue, Oct. 6, 4:42 PM | Comment!
  • Tue, Oct. 6, 4:16 PM
    • Yum! Brands (NYSE:YUM): FQ3 EPS of $1.00 misses by $0.07.
    • Revenue of $3.43B (+2.4% Y/Y) misses by $250M.
    • Shares -12%. 
    • Press Release
    | Tue, Oct. 6, 4:16 PM | 13 Comments
  • Mon, Oct. 5, 5:35 PM
  • Mon, Sep. 21, 9:51 AM
    • Yum Brands (YUM +0.2%) adds Target CEO Brian Cornell to its board of directors in a move retail analysts see as very strategic.
    • Cornell has handled some major transitions at Target already in his short term with the CVS deal and the company's exit from Canada. The exec is also a former CEO at Sam's Club. giving im some insight into the Bentonville mindset.
    | Mon, Sep. 21, 9:51 AM | Comment!
  • Wed, Sep. 16, 3:34 PM
    • Taco Bell (NYSE:YUM)  will open its first store for a new concept aimed at millennials next week in Chicago.
    • The company expects to open ten Taco Bell Cantina stores which will serve beer, wine, and frozen cocktails.
    | Wed, Sep. 16, 3:34 PM | 2 Comments
  • Fri, Aug. 21, 11:31 AM
    • An effort by Chick-fil-A to expand into the Denver International Airport is meeting resistance due to the company's previous stances on same-sex marriage.
    • Politicians in Boston and San Francisco have voiced similar concerns over the chicken chain entering their cities.
    • The political issues could slow down a broader U.S. roll-out of Chick-fil-A  which  is a development that could benefit McDonald's (MCD -1.4%), KFC (NYSE:YUM), Hardee's, and others. The chains already have a one-day sales advantage in markets with Chick-fil-A stores due to the company's policy to stay closed on Sundays.
    | Fri, Aug. 21, 11:31 AM | 37 Comments
  • Tue, Aug. 18, 6:39 PM
    • Micky Pant, formerly the head of YUM's KFC division, has been named CEO of the company's China division. Sam Su is stepping down as both chairman and CEO of the China unit. COO Roger Eaton will now be in charge of KFC outside of China and India.
    • The shakeup comes amid calls by hedge fund Corvex Management for Yum to spin off its Chinese ops. A Yum spokesman insists today's move wasn't made in preparation for a spinoff.
    • Yum's Chinese sales, hit hard in recent quarters by a 2014 scandal involving the practices of ex-food supplier OSI Group/Shanghai Husi, fell 4% Y/Y in FQ2. Units rose 7%, but same-store sales fell 10%.
    • Yum has risen to $86.06 after hours.
    | Tue, Aug. 18, 6:39 PM | Comment!
  • Tue, Aug. 18, 5:40 PM
    | Tue, Aug. 18, 5:40 PM | 4 Comments
  • Tue, Aug. 18, 9:04 AM
    • McDonald's (NYSE:MCD) is the top choice of the slice of consumers who like breakfast at any hour of the day, according to a survey from YouGov BrandIndex.
    • The chain was considered by 41% of "breakfastarians" for their next meal to top Subway, IHOP, Burger King, and Starbucks.
    • Chick-Fil-A, IHOP (NYSE:DIN), and Taco Bell (NYSE:YUM) made large jumps from their ranking six months ago.
    • McDonald's is only testing all-day breakfast in select markets at the moment.
    | Tue, Aug. 18, 9:04 AM | 7 Comments
  • Mon, Aug. 17, 11:35 AM
    • Yum Brands (YUM +1.2%) announces it will use comedian Norm Macdonald to play Colonel Sanders in KFC commercials to cover for the sudden departure of Darrell Hammond from the role.
    • The Colonel Sanders reboot by the company is seen as an attempt to cut into Chick-fil-A's growing influence in the quick chicken category, although analysts have been largely skeptical over the campaign.
    • U.S. KFC sales rose 1% in Q2 and are up 3% YTD.
    | Mon, Aug. 17, 11:35 AM | 3 Comments
  • Wed, Aug. 12, 10:01 AM
    • Yum Brands (YUM -4.3%) slides to a 4-month low as concerns over sales in China mount amid a weaker local currency and broader macroeconomic question marks.
    • Shares of the restaurant company are down almost 9% from last week's high.
    • Starbucks (SBUX -1.6%) and McDonald's (MCD -0.9%) face the same foreign currency translation issue as Yum, but not nearly at the same scale.
    | Wed, Aug. 12, 10:01 AM | 13 Comments
  • Wed, Jul. 15, 10:44 AM
    • China was a major topic during the Yum Brands (YUM -2.9%) earnings call today.
    • Management skirted over macro issues in the nation and KFC store closures to promise a strong second half and improved profitability.
    • Taco Bell is a definite bright spot for the company. Breakfast now accounts for 7% of the division's sales. Management says it's confident Taco Bell will become the company's third global brand.
    • CEO Greg Creed says the Pizza Hut division also has significant upside potential, while acknowledging peers (Domino's, Papa Johns) are outperforming it.
    • Double-digit EPS growth is forecast for this year and next.
    • Shares of Yum pared their losses during the course of the call.
    • Previously: Yum! Brands beats by $0.06, misses on revenue (Jul. 14 2015)
    • Previously: Taco Bell helps offset China weakness for Yum Brands in Q2 (Jul. 14 2015)
    | Wed, Jul. 15, 10:44 AM | 1 Comment
  • Tue, Jul. 14, 4:24 PM
    • Yum Brands (NYSE:YUM) held company-wide worldwide restaurant margin level at 15.5% during Q2. Operating profit fell 1%. Across divisions results varied widely.
    • China division: Sales -4% on 7% unit growth. Same-store sales -10%. Operating profit -25%.
    • KFC division: Sales +6% on 2% unit growth. Same-store sales 3%. Operating profit +10%.
    • Taco Bell division: Sales +9% on 3% unit growth. Same-store sales +6%. Operating profit +29%. Restaurant margin +530 bps to 23.0%.
    • Pizza Hut division: Sales +1% on 2% unit growth. Same-store sales flat. Operating profit -1%.
    • India division: Sales flat on 16% unit growth. Same-store sales -11%.
    • CEO Greg Creed says the company will see improved results in China in the second half and Yum is still on track to open 700 restaurants in the nation this year.
    • YUM -1.23% after hours to $90.87.
    | Tue, Jul. 14, 4:24 PM | Comment!
  • Tue, Jul. 14, 4:12 PM
    • Yum! Brands (NYSE:YUM): Q2 EPS of $0.69 beats by $0.06.
    • Revenue of $3.11B (-2.8% Y/Y) misses by $80M.
    • Shares +1%.
    • Press Release
    | Tue, Jul. 14, 4:12 PM | Comment!
  • Mon, Jul. 13, 5:35 PM
Company Description
Yum Brands Inc through the three concepts of KFC, Pizza Hut and Taco Bell, develops, operates, franchises and licenses a system of restaurants which prepare, package and sell a menu of competitively priced food items.
Sector: Services
Industry: Restaurants
Country: United States