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Wed, Feb. 3, 4:48 PM
- Yum Brands (NYSE:YUM) reports operating profit increased 13% in Q4.
- China division: Sales +7% (constant currency), restaurant margin +430 bps to 11.4%, operating profit +200%.
- KFC division: Sales: Sales +6%, operating profit +7%.
- Pizza Hut division: Sales +2%, operating profit +6%.
- Taco Bell division: Sales +7%, same-store sales +4%, operating profit -7%.
- India division: Sales -9%, same-store sales -13%.
- The company paid an effective tax rate of 29.4% during the quarter, down 60 bps from a year ago.
- Yum Brands backs full-year 2016 operating profit growth of 10% in constant currency.
- Previously: Yum! Brands beats by $0.02, misses on revenue (Feb. 3)
- YUM -1.48% AH to $71.35.
Wed, Feb. 3, 4:18 PM
Tue, Jan. 12, 4:44 PM
- YUM Brands' China Division same-store sales rose 1% Y/Y in December, after dropping 3% in November. KFC same-store sales rose 5%; Pizza Hut fell 11%. (8-K filing)
- For the whole of FQ4 (features September, October, November, and December), China Division same-store sales rose 2%. KFC grew 6%; Pizza Hut fell 8%.
- Yum has risen to $71.99 after hours. FQ4 results arrive on Feb. 3.
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)
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. 15, 2015, 5:35 PM
Oct. 15, 2015, 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.
Oct. 7, 2015, 12:45 PM
Oct. 7, 2015, 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.
Oct. 7, 2015, 9:14 AM
Oct. 6, 2015, 5:43 PM
Oct. 6, 2015, 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
Oct. 6, 2015, 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%.
Aug. 18, 2015, 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.
Aug. 18, 2015, 5:40 PM
Jul. 15, 2015, 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)
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