Wed, May 20, 5:29 PM
- Colonel Sanders is being brought back out of semi-retirement as part of a new marketing campaign to promote KFC (NYSE:YUM).
- The initiative is part of a larger strategic overhaul of the KFC brand that includes a plan to remodel stores.
- KFC has been in a prolonged slump as chains including Bojangles, Chick-fil-A, and Popeye's have all grabbed market share.
- Execs hope a personalized touch at stores and the re-emergence of the Colonel can invigorate the chain.
Wed, May 20, 9:43 AM
- Shares of El Pollo Loco (NASDAQ:LOCO) and Habit Restaurants (NASDAQ:HABT) are on watch after the city of Los Angeles increases its minimum wage to $15 per hour.
- The two chains have a high mix of stores in California.
- Taco Bell (NYSE:YUM) is also well represented in Orange County.
- Previously: Los Angeles bumps minimum wage to $15/hour
Fri, May 15, 12:40 PM
- Dan Loeb's Third Point LLC exited its 10M-share Alibaba (BABA - unchanged) position in Q1, after having upped its stake in the Chinese e-commerce giant in Q4. (13F filing)
- The firm also unloaded its 7M-share position in EMC (EMC -0.1%), which confirmed during the quarter it doesn't plan to spin off VMware, and a 4M-share stake in Williams (WMB +1.3%).
- A 3.3M-share stake was taken in Yum Brands (YUM +3.6%), a 900K-share stake in FedEx (FDX +0.7%), a 1.15M-share stake in J.M. Smucker (SJM -0.1%), and a 626K-share stake in McKesson (MCK). Loeb also respectively took 1.6M-share and 3.5M-share stakes in chipmakers NXP (NXPI +0.2%) and Maxim (MXIM +0.4%).
- Stakes were increased in Delta Air Lines, Actavis, FleetCor, and Roper Technologies, and decreased in Amgen, Ally Financial, eBay, Phillips 66, and Anheuser Busch. Interestingly, a modest 90K-share position was taken in top Alibaba rival JD.com (JD -0.8%).
- Meb Faber observes someone tracking Loeb's top 10 picks since 2000 would have obtained a 12.4% annual return since 2000 (504.8% overall), soundly beating the S&P 500's 4.4% (95.4% overall).
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, 7:50 AM
- Taco Bell (NYSE:YUM) has an application pending on a liquor license for a store in Chicago, according to Nation's Restaurant News.
- Taco Bell is also in the process of launching a new urban smaller-sized store concept.
- Several fast-casual Mexican chains offer customers alcoholic beverages, including Chipotle.
Mon, May 4, 1:14 PM
- Continuing his bull thesis on Yum Brands (YUM +1.7%), Keith Meister starts to sound more like the activist he is, telling Ira Sohn attendees Yum should separate its China unit into an independent Chinese company.
- He sees 50-90% upside, with the current stock price of about $90 per share giving investors the Chinese operation for free.
- Meister's Corvex owns $1.5B of Yum, making it a top five shareholder in the company.
- Follow conference on Twitter
- Previously: Corvex's Meister touts Yum Brands at Ira Sohn (May 4)
Mon, May 4, 1:04 PM
- Yum Brands (YUM +1.9%) is a great way to play the middle class growth in China, says Icahn alum Keith Meister, telling the Ira Sohn conference his funds own $1.5B of the stock.
- The company, he says, has first-mover advantage in China which has no mature franchise model. Meister thinks Yum will have 18K locations in that country at some point vs. 6.5K today.
- Live blog of the conference
- Follow on Twitter
Fri, May 1, 4:17 PM
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, 6:55 AM| Comment!
Tue, Apr. 21, 5:37 PM
Tue, Apr. 21, 4:24 PM
- Yum Brands (NYSE:YUM) trades higher after beating estimates for Q1 profit.
- China: Sales were off 6% with 8% unit growth outrun by a -12% same-store sales comp vs -14% expected. Restaurant margin -450 bps to 18.9% off of sales deleverage.
- KFC: Sales growth of 8% derived from 2% unit growth and 5% same-store sales growth. Operating margin i+180 bps to 26.3%.
- Pizza Hut: Revenue rose sales 2% led by 2% unit growth. Same-store sales came in flat. Operating margin -150 bps to 30.0%.
- Taco Bell: Sales up 9% on 3% unit growth and a 6% comp. Operating margin +520 bps to 26.6%.
- India: Sales increased 1%. Unit growth +18% offset by an 11% same-store sales decline.
- 294 stores were added to Yum' system during the quarter.
- Previously: YUM! Brands beats by $0.08, revenue in-line
- YUM +4.64% after hours.
Tue, Apr. 21, 4:13 PM
Tue, Apr. 21, 1:53 PM
- KFC (NYSE:YUM) is looking to become the lower-cost premium coffee alternative to Starbucks in China with a broad roll-out this year.
- The company anticipates all 2.5K outlets will offer premium coffee by the end of the year.
- Reports indicate KFC's premium coffee will cost about half of what Starbucks sells for and about 10% below the pricing from McDonald's.
- KFC is the largest fast-food chain in China.
Mon, Apr. 20, 5:35 PM
Wed, Apr. 15, 11:00 AM
- Cowen Research initiates coverage on 8 different restaurant stocks.
- Starbucks (SBUX -0.1%) and Chipotle (CMG +0.7%) land Outperform ratings.
- Also of note, the high-flying pair ranked first and second in a Piper Jaffray poll of top restaurants brands with upper-income and average-income teenagers.
- Buffalo Wild Wings (BWLD +0.6%) was the third stock set at Outperform by Cowen.
- Habit Restaurants (HABT -1.8%), McDonald's (MCD -0.3%), Restaurants Brands Group (QSR +0.2%), Panera Bread (PNRA +0.7%), and Yum Brands (YUM +0.8%) were given a rating of Market Perform by the investment firm.
- None of the restaurant stocks listed above trade with a forward P-E ratio below 20.
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