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Yum! Brands, Inc. (YUM)

  • 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!
  • Tue, Jul. 14, 4:12 PM
    • Yum! Brands (NYSE:YUM): Q2 EPS of $0.69 beats by $0.06.
    • Revenue of $3.11B (-2.8% Y/Y) misses by $80M.
    • Shares +1%.
    • Press Release
    | Tue, Jul. 14, 4:12 PM | Comment!
  • Mon, Jul. 13, 5:35 PM
  • Thu, Jul. 9, 2:24 PM
    • Taco Bell (NYSE:YUM) is offering a delivery service from about 200 locations spread across Los Angeles, Orange County, San Francisco, and Dallas.
    • The cost is $1 for the first delivery and $3.99 for subsequent deliveries.
    • The company partnered with mobile app DoorDash on the delivery initiative. DoorDash users can track the progress of orders similar to the popular Domino's Pizza app which has boosted sales significantly for the pizza chain.
    | Thu, Jul. 9, 2:24 PM | 4 Comments
  • Mon, Jul. 6, 7:59 AM
    • McDonald's (NYSE:MCD) and Yum's (NYSE:YUM) Kentucky Fried Chicken unit both seek to add digital pay options in China as they attempt to increase sales in the crucial market, WSJ reports.
    • MCD says it will start testing mobile ordering and mobile payment in China under a pilot program in the current quarter, aiming to speed payment and meet consumer demands.
    • Yum says its KFC business teamed up with Alibaba in late June to launch mobile payment services for 700 of its 4,500-plus stores in China.
    • Attracting more diners and swifter sales is key for both MCD and YUM after Chinese media reports last summer connected the companies with a restaurant supplier that allegedly sold them expired meat; the companies dropped the supplier, but sales suffered and have not fully recovered.
    | Mon, Jul. 6, 7:59 AM | Comment!
  • Fri, Jun. 26, 11:55 AM
    • Large restaurant chains are showing some strength after consumer sentiment rose to a five-month high.
    • The sector has done very on the pricing and mix end of the matrix, but is still seeing overall sluggish traffic trends.
    • Notable gainers include Restaurant Brands International (NYSE:QSR) +2.3%, Red Robin Gourmet Burgers (NASDAQ:RRGB) +2.3%, Domino's Pizza +2.1% to a new all-time high, Yum Brands (NYSE:YUM) +1.4%, Denny's (NASDAQ:DENN) +1.2%
    • McDonald's (NYSE:MCD) is +0.6% to $96.49. Shares of MCD have poked their head over $100 a few times this year, but many analysts think the company needs to report positive U.S. comparable-store sales growth to escape its current trading range.
    | Fri, Jun. 26, 11:55 AM | 2 Comments
  • Tue, Jun. 16, 2:07 PM
    • Privately-owned Chick-fil-A is stepping up its pace of expansion, notes
    • The chain is expected to add 88 stores this year to take its store count up to 2K.
    • Perhaps of interest to rivals, Chick-fil-A plans to push into metro areas such as New York and Las Vegas as well as grow its presence in Los Angeles and Chicago.
    • The new round of expansion could place Chick-fil-A in more direct competition with Popeye's (NASDAQ:PLKI), KFC (NYSE:YUM), and Bojangles (NASDAQ:BOJA) in some markets.
    • The expansion of Chick-fil-A could also be a factor with input costs for Wingstop (NASDAQ:WING) and Buffalo Wild Wings (NASDAQ:BWLD) which sometimes rise when restaurant industry chicken demand spikes higher.
    | Tue, Jun. 16, 2:07 PM | Comment!
  • Thu, Jun. 4, 8:54 AM
    • Taco Bell (NYSE:YUM) confirms a store in Chicago will sell beer, wine, and frozen alcoholic drinks this summer.
    • The test will mark the first time the chain has sold alcohol in the U.S.
    • The store layout and design will be significantly different than the typical Taco Bell look in the U.S.
    • Rival Chipotle sells alcohol at its stores, although the category isn't a major factor in comparable-store sales growth.
    | Thu, Jun. 4, 8:54 AM | 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
  • Mon, Jun. 1, 7:15 AM
    • KFC filed a lawsuit in China against three companies to protects its brands against false claims.
    • The Yum Brands (NYSE:YUM) business says an intensified effort by the Chinese government to combat online manipulation of brands along with some recent judicial rulings have aided it in its fight.
    | Mon, Jun. 1, 7:15 AM | 1 Comment
  • Fri, May 29, 12:06 PM
    • Deutsche Bank picks McDonald's (NYSE:MCD) and Darden Restaurants (NYSE:DRI) as its top two restaurants stocks.
    • Turnaround plans at both companies will yield improved results for shareholders, according to DB.
    • Analysts call the reorganization of brands and business groups at McDonald's and Darden a strategic move.
    • The investment firm is cautious on the restaurant sector overall, with Hold ratings initiated on Sonic (NASDAQ:SONC), Zoe's Kitchen (NYSE:ZOES), Yum Brands (NYSE:YUM), Texas Roadhouse (NASDAQ:TXRH), Panera Bread (NASDAQ:PNRA), Bloomin' Brands (NASDAQ:BLMN).
    | Fri, May 29, 12:06 PM | 5 Comments
  • Tue, May 26, 12:41 PM
    • Yum Brands (YUM -0.2%) chains Taco Bell and Pizza Hut plan to replace artificial colors and flavors with natural ingredients for a majority of its food items.
    • The action from the restaurant chains follows an industry-wide push in the natural direction.
    | Tue, May 26, 12:41 PM | 2 Comments
  • 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, 5:29 PM | 2 Comments
  • 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
    | Wed, May 20, 9:43 AM | 8 Comments
  • 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 -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, 12:40 PM | 5 Comments
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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