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Yum! Brands, Inc. (YUM)

  • Thu, Nov. 12, 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.
    | Thu, Nov. 12, 4:43 PM | 1 Comment
  • Thu, Oct. 15, 5:35 PM
    • Top gainers, as of 5.25 p.m.: PTCT +2.7%. YUM +2.3%. XIV +1.5%.
    • Top losers, as of 5.25p.m.: WYNN -8.5%. MPEL -3.5%. TVIX -2.9%.
    | Thu, Oct. 15, 5:35 PM | Comment!
  • Thu, Oct. 15, 4:38 PM
    • Yum Brands (NYSE:YUM) is up 3.6% after hours, updating its full-year outlook as a strategic review nears its end.
    • Sales in China may be difficult to forecast, it says in estimating that same-store sales for Q4 could range for 0% to 4% (positive at KFC, negative growth at Pizza Hut). For the full fiscal year, China Division same-store sales should be low-single-digit negative, with profits flat in constant currency.
    • Overall, full-year EPS growth will take an impact of 1-2 percentage points due to foreign exchange, Yum says, and now forecasts EPS growth to range from flat to low-single-digit positive.
    • The company will start reporting monthly same-store sales, beginning with October's numbers after the close on Nov. 12.
    • News about the strategic review (including any change to structure) are coming soon, Yum says.
    • The company also named Keith Meister to its board.
    | Thu, Oct. 15, 4:38 PM | 4 Comments
  • Wed, Oct. 7, 12:45 PM
    | Wed, Oct. 7, 12:45 PM | 7 Comments
  • Wed, Oct. 7, 9:40 AM
    • Yum Brands (NYSE:YUM) is likely to face activist investor pressure as the company's problems in China continue to overwhelm results.
    • Nomura Securities notes investors wanting to buy shares of Taco Bell are unable to snatch them up without taking on considerable China risk. Taco Bell met expectations with a 4% gain in same-store sales in FQ3. The chain is seen as a beneficiary of lower gas prices in the U.S. and has pulled several innovation levers with success.
    • A standalone Taco Bell could be enticing to U.S.-focused investors and provide value to Yum shareholders, reasons the Nomura team.
    • Previously: Yum down 16.8% on FQ3 miss, EPS guidance cut; China and India weigh (Oct. 06 2015)
    • YUM -17.5% to $68.86 in opening trades, the lowest level for the restaurant stock in almost a year.
    | Wed, Oct. 7, 9:40 AM | Comment!
  • Wed, Oct. 7, 9:14 AM
    | Wed, Oct. 7, 9:14 AM | 4 Comments
  • Tue, Oct. 6, 5:43 PM
    • Top gainers, as of 5.25 p.m.: RCL +3.1%.
    • Top losers, as of 5.25p.m.: YUM -16.0%. NUS -14.0%. CLF -7.4%. ADRO -5.2%. ADBE -3.0%.
    | Tue, Oct. 6, 5:43 PM | 2 Comments
  • 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, 4:16 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
  • 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
  • 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!
  • Wed, Jun. 3, 9:50 AM
    • Yum Brands (NYSE:YUM) is active in early trading with speculation on some interest by Nelson Peltz swirling around.
    • The company is considered by analysts as a prime candidate to see a push by activist investors.
    • Shares of Yum are up 1.3% on a volume spike.
    | Wed, Jun. 3, 9:50 AM | 1 Comment
  • Fri, May 15, 8:20 AM
    • Shares of Yum Brands (NYSE:YUM) perk up in premarket action after JPMorgan issues an upgrade.
    • The restaurant operator is taken to an Overweight rating from Neutral by JP and assigned a higher price target of $108.
    • A spin-off of Yum's China business and investor activism are seen as two catalysts for share price appreciation.
    • YUM +1.12% premarket to $91.03.
    | Fri, May 15, 8:20 AM | Comment!
  • Fri, May 1, 9:47 AM
    • Yum Brands (YUM +5%) moves higher in early trading after Third Point discloses a new position in the restaurant holding company its Q1 letter.
    • The "significant" stake in Yum from Third Point is based on its forecast for a dramatic turn in profits.
    • Previously: UBS stays positive on Yum Brands (May. 01 2015)
    | Fri, May 1, 9:47 AM | Comment!
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