Yum Brands Shows Promise In China As Food Safety Concerns Fade
Dane Bowler • 12 Comments
Dane Bowler • 12 Comments
Tue, Jan. 5, 4:41 PM
- David C. Novak, YUM Brands' chairman since 2000 and its CEO until last year (when Greg Creed took over), plans to step down from the board in May following Yum's annual meeting.
- The board "plans to appoint a Non-Executive Chairman from among its Directors to succeed Mr. Novak and will announce that appointment at the Company's annual shareholder meeting."
Dec. 21, 2015, 3:58 PM
- A statement from Chipotle (NYSE:CMG) addresses the new report from the CDC on 5 more E. coli cases tied to the restaurant chain.
- The company says it completed a "comprehensive" reassessment of food safety programs and believes it can achieve a "near zero" level of food safety risk.
- The five new cases disclosed today that dated back to November were expected, according to the Chipotle release.
- Shares of Chipotle fell 3.6% with over 2.6M shares traded.
- Sector watch: Restaurant analysts have been divided over which chain may have picked up some lost Chipotle traffic over the last few months, although the name most mentioned has been Qdoba (NASDAQ:JACK). Pret a Manger and Panera Bread (NASDAQ:PNRA) have also been cited due to their strong rate of geographic overlap with Chipotle. The case for Taco Bell (NYSE:YUM) and Del Taco (NASDAQ:TACO) hasn't been supported by early channel checks on traffic. Both Starbucks (NASDAQ:SBUX) and McDonald's (NYSE:MCD) may have caught some extra lunch business, but not enough to drive comps significantly higher.
- Previously: Chipotle hit again by E. coli report (Dec. 21 2015)
Dec. 10, 2015, 3:53 PM
- Wasting little time after the company detailed plans to split off its China operation, S&P downgrades the corporate credit rating of Yum Brands (YUM -1%) to BB from BBB. Yum had been on CreditWatch negative since October, so the downgrade doesn't come as too much of a surprise (the outlook is now stable).
- Noted by S&P is the company's plan to return up to $6.2B to shareholders and the resultant meaningfully higher leverage.
- Previously: Yum Brands stays confident at investor conference (Dec. 10)
Dec. 10, 2015, 11:29 AM
- Yum Brands (YUM -3%) plans to list shares of the China-focused company on the NYSE after it is spun off. A dual listing in Hong Kong is also possible.
- Execs that presented today indicated that growth will continue in China, despite the pressure on comparable-restaurant sales. Taco Bell could see a new format in the region.
- Yum Brands investor conference webcast
- Previously: Yum Brands execs to dish out details on business split (Dec. 10 2015)
Dec. 10, 2015, 8:38 AM
- Yum Brands (NYSE:YUM) will present this morning at an investor conference with a sharp focus on the company's plan to split into two.
- Execs will highlight the business separation which will allow Yum to go from a single company with 10% EPS growth to two entities each with 15% shareholder returns (EPS + dividends).
- Yum plans to distribute $6.2B to shareholders ahead of the split.
- Ahead of the talk, Yum's November sales tallies for China were released. The China division saw a 3% decline in same-store sales during the month, driven lower by weakness at Pizza Hut.
- Yum Brands webcast
- YUM -0.14% premarket to $73.70.
Dec. 7, 2015, 4:40 PM| Dec. 7, 2015, 4:40 PM | 2 Comments
Dec. 1, 2015, 8:43 AM
Nov. 19, 2015, 4:38 PM
- Yum! Brands (NYSE:YUM) declares $0.46/share quarterly dividend, in line with previous.
- Forward yield 2.57%
- Payable Feb. 5; for shareholders of record Jan. 15; ex-div Jan. 13.
Nov. 16, 2015, 9:44 AM
- Taco Bell (NYSE:YUM) says it will be the first fast-food chain to serve only cage-free eggs.
- The company expects to pull off the switch by the end of 2016 - an earlier target date than the one set by McDonald's.
- A previously-announced goal by Taco Bell to remove artificial flavors and colors from core menu items will be achieved by the beginning of 2016.
Nov. 16, 2015, 8:33 AM
- Hedge fund Third Point disclosed its current holdings in a new SEC filing.
- The firm now holds 8.25M shares of Kraft Heinz (NASDAQ:KHC).
- The stake in Yum Brands (NYSE:YUM) was increased to over 11.7M shares.
- Third Point trimmed its positions in Constellation Brands (NYSE:STZ) and J.M. Smucker (NYSE:SJM).
- SEC Form 13-F
Nov. 12, 2015, 4:43 PM
- YUM's China division same-store sales rose an estimated 5% Y/Y in October, down slightly from September's 6% but better than the 2% reported for FQ3. KFC saw 10% Chinese same-store growth (rebounding from the effects of last year's OSI scandal), and Pizza Hut a 9% decline. (8-K filing)
- The fast-food giant is reiterating guidance for 0%-4% Y/Y Q4 Chinese same-store growth, with positive KFC growth and negative Pizza Hut growth. The Q4 outlook covers September in addition to October, November, and December. November comps will be reported in tandem with Yum's annual investor conference.
- Shares have risen to $70.11 after hours.
Oct. 21, 2015, 12:54 PM
- Taco Bell (NYSE:YUM) saw a 20% to 25% increase in customer traffic in the weeks after McDonald's (NYSE:MCD) introduced all-day breakfast, according to data from Foursquare. Though the chain has run some recent promotions, and now has over 25 items on the breakfast menu, the big jump still looks surprising.
- McDonald's showed a 9% traffic gain over the same time period.
- Another major fast-food player might be toying with the all-day breakfast concept. Burger King (NYSE:QSR) is reported to have one store in New Jersey already offering some breakfast items throughout the day. The company hasn't announced anything officially.
Oct. 20, 2015, 7:37 AM
- Yum Brands (NYSE:YUM) says the separation will allow each standalone to focus on its own distinct commercial priorities.
- After the separation, Yum Brands will be led by current CEO Greg Creed and Yum China will be headed by Micky Pant.
- Yum China will remain on track to open 700 new restaurants this year and to expand to as many as 20K restaurants in the future.
- The deal is expected to be completed by the end of 2016. The company expects it to qualify as a tax-free reorganization.
- A detailed presentation on the strategies of both companies will be revealed at at Analyst/Investor Day event scheduled for December 10.
- Previously: Yum Brands to divide itself into two companies (Oct. 20 2015)
- YUM +5.72% premarket to $75.80.
Oct. 20, 2015, 7:09 AM
- Yum Brands (NYSE:YUM) announces it will separate into two new companies.
- The separation will create Yum China and Yum Brands. Yum China will operate under a franchisee agreement in China, while Yum Brands will be largely a pure-play franchisor.
- YUM +4.56% premarket to $74.98.
Oct. 20, 2015, 2:19 AM
- Yum! Brands (NYSE:YUM), the owner of KFC, Pizza Hut and Taco Bell, is preparing to separate its Chinese and U.S. businesses in a major restructuring of the $31B fast-food group, Bloomberg reports.
- The move follows calls from activist investor Keith Meister, who has suggested Yum could boost its worth by $16/share by exiting China (an increase of about $7B in market value).
- Plans to break up the company are advanced and could be announced before the end of the month.
- Previously: Yum down 16.8% on FQ3 miss, EPS guidance cut; China and India weigh (Oct. 06 2015)
- Previously: Yum names new China chief amid spinoff calls; shares +2.3% (Aug. 18 2015)
Oct. 16, 2015, 10:27 AM
- Yum Brands (YUM +1.7%) says it will continue to expand in Russia as it tries to take advantage of a consumer trade-down from fine dining.
- The company's top exec in the nation said the KFC chain will add stores as it looks to take advantage of its perceived pricing advantage.
- Yum is expected to add 100 stores this year and in 2016 in Russia and bordering former Soviet satellites.
- Previously: Yum Brands up 3.6%, updates full-year guidance (Oct. 15 2015)
Yum! Brands, Inc. is a quick service restaurant company. The company operates its business through five operating segments: YUM China, YUM India, KFC Division, Pizza Hut Division and Taco Bell Division. The YUM China which includes all operations in mainland China. The YUM India which includes... More
Country: United States
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