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YUM! Brands, Inc. (YUM)

  • Dec. 10, 2014, 9:10 AM
    | 1 Comment
  • Dec. 10, 2014, 9:06 AM
    • Yum Brands (NYSE:YUM) is a logical acquisition candidate for 3G Capital, according to analysis from RBC Capital Markets.
    • The investment firm notes 3G has shown an appetite for stepping up acquisitions within the same sector.
    • 3G is the majority shareholder of Burger King Worldwide which is set to merge with Tim Hortons.
    • YUM -4.6% premarket after disappointing guidance.
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  • Dec. 9, 2014, 5:36 PM
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  • Dec. 9, 2014, 4:39 PM
    • Though YUM's Chinese same-store sales are recovering from the summer hit they took from the OSI scandal, they're doing so "at a slower pace than expected." As a result, Yum now expects mid-single digit 2014 EPS growth, down from prior guidance of 6%-10% (already lowered). China Division same-store sales are expected to be down by a mid-single digit clip.
    • In addition, Yum is only guiding for 2015 EPS growth of "at least 10%;" consensus is for EPS to grow 17% to $3.78. "Meaningful upside opportunity" exists if Chinese sales rebound faster than expected.
    • Yum respectively forecasts China Division, KFC, Pizza Hut, and Taco Bell op. profit growth of "at least 15%," 10%, 10%, and 6%. 2,100 gross new international units will be built next year (700 in China), and the capex budget is at $1.2B.
    • The fast food giant plans to lower its share count by 2% in 2015 via buybacks.
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  • Dec. 8, 2014, 11:55 AM
    • Goldman Sachs takes up coverage again on Yum Brands (YUM -1.4%) with a Sell rating.
    • The report from the investment firm on Yum indicates a lack of faith the China business can be turned around.
    | 1 Comment
  • Dec. 2, 2014, 8:56 PM
    • Though federal legislation on a minimum wage increase is stalled in Congress, there's still movement on the hourly payment front.
    • Organized protests at Wal-Mart stores on Black Friday were more widespread than in recent years.
    • The city council of Chicago approved a gradual increase of the minimum wage in the city to $13 per hour by 2019.
    • The pay hike in the Windy City follows similar measures in Seattle, San Francisco, and Oakland.
    • Earlier this week, a state senator is California introduced legislation to boost the minimum wage in the state to $13 per hour by 2017.
    • Related stocks: MCD, WMT, BKW, WEN, YUM, TGT.
  • Nov. 20, 2014, 5:40 PM
    • In addition to declaring its quarterly dividend, YUM has announced a new $1B buyback; it's good for repurchasing 3% of shares at current levels.
    • Thus far in 2014, Yum has spent $691M to repurchase 9.4M shares. A $750M buyback was announced a year ago.
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  • Nov. 20, 2014, 4:28 PM
    • YUM! Brands (NYSE:YUM) declares $0.41/share quarterly dividend, in line with previous.
    • Forward yield 2.17%
    • Payable Feb. 6; for shareholders of record Jan 16; ex-div Jan 14.
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  • Nov. 20, 2014, 10:45 AM
    • The usual suspects topped a list of the businesses with the most foot traffic in October, compiled by location analytics firm Placed.
    • The top five chains were Wal-Mart (NYSE:WMT), McDonald's (NYSE:MCD), Subway, Starbucks (NASDAQ:SBUX), and Walgreens (NYSE:WAG).
    • Significant movers over the last month include KMart (NASDAQ:SHLD) +9 spots, KFC (NYSE:YUM) +6 spots, Bed Bath & Beyond (NASDAQ:BBBY) -7 spots, and Costco (NASDAQ:COST) -6 spots.
  • Nov. 10, 2014, 1:37 PM
    • Pizza Hut unveils a broad series of menu changes to hit stores on November 19.
    • The biggest change is the large expansion of toppings and sauce options that customer will have for pizzas.
    • The company will also see some rebranding efforts with a new logo and a more casual employee dress code.
    • The Yum Brands (NYSE:YUM) chain has seen same-store sales decline for 8 straight quarters in the U.S.
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  • Nov. 3, 2014, 2:57 PM
    • Yum Brands (YUM -0.3%promotes David Gibbs to be the new executive in charge of Global Pizza Hut to replace the retiring Scott Bergren.
    • Gibbs takes over the duties on January 1.
    • Pizza Hut delivered a flat comp for the company in FQ3.
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  • Oct. 22, 2014, 10:17 AM
    • Wingstop plans to launch a $100M IPO, sources tell the WSJ.
    • The chicken wing chain is looking for a $500M valuation.
    • Wingstop has increased its pace of expansion this year and impressed in Q2 with a 15.3% same-store sales comp.
    • What to watch: The growth of Wingstop hasn't been at the expense of Buffalo Wild Wings (NASDAQ:BWLD) with 80% of its business from take-home customers. KFC (NYSE:YUM), WingStreet, and Popeye's (NASDAQ:PLKI) could be the chains to feel a pinch if Wingstop turbocharges expansion.
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  • Oct. 22, 2014, 10:07 AM
    • Pizza Hut (NYSE:YUM) is likely to market a new portable pizza product to millennials in 2015, predicts Belus Capital Advisors' Brian Sozzi.
    • Sozzi isn't the only analyst calling on the restaurant chain to upgrade its menu in order to compete with Dominoe's and Papa Johns.
    • Pizza Hut same-store sales growth in 2014: -2% in Q1, -3% in Q2, -2% in Q3.
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  • Oct. 14, 2014, 11:26 AM
    • KFC (NYSE:YUM) will open its first outlet in Myanmar next year, according to Nikkei Asian Review.
    • The outlet will be the first American fast-food restaurant ever in the nation.
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  • Oct. 13, 2014, 3:30 PM
    • There's a grim forecast on U.S. restaurant traffic out from NPD Group.
    • Analyst Bonnie Riggs predicts growth will be limited to less than 0.5% a year out to 2022.
    • Though the analyst cites some pockets of strength such as the breakfast daypart, the fast-casual segment, and higher-end restaurant demand - she thinks overall restaurant revenue will be pressured by soft demand from the middle class.
    • Millennials are a particular concern with their visits to restaurant outlets in steady decline over the last few years.
  • Oct. 10, 2014, 9:36 AM
    • The Fair Minimum Wage Act (H.R. 1010) has been stalled in Congress even as several states and municipalities propose their own minimum wages laws.
    • The HR 1010 legislation calls for the incremental increase in the federal minimum wage to $10.10 per hour after which it would be indexed to inflation.
    • What to watch: Analysts expect most voter referendums on minimum wage increases to pass in November, while a national framework remains in limbo.
    • Full bill (.pdf)
    • Related stocks: PLKI, BKW, WEN, JACK, SONC, YUM, MCD, GTIM, TAST.
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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