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YUM! Brands, Inc. (YUM)

- NYSE
  • Wed, Feb. 4, 4:35 PM
    • Yum Brands (NYSE:YUM) reports mixed numbers for Q4 with some regions and brands pulling up from last quarter.
    • Worldwide restaurant margin -20 bps to 10.2%., dragged down by a sharp slide in margins in the China division.
    • The comp put up the China division was -16%.
    • The Taco Bell division was a bright spot with a 6% comp and improved margins on 2% unit growth. The U.S. comp was +3%.
    • The comp was flat in the Pizza Hut division, but margins tailed off on a sales deleverage and global investment spend.
    • The India division grew sales 14% on a wider roll-out of KFC and home service.
    • YUM +2.5% after hours.
    | Comment!
  • Wed, Feb. 4, 4:16 PM
    • YUM! Brands (NYSE:YUM): Q4 EPS of $0.61 misses by $0.05.
    • Revenue of $4B (-4.3% Y/Y) beats by $30M.
    • Shares +1.43%.
    • Press Release
    | 1 Comment
  • Fri, Jan. 23, 11:25 AM
    | 13 Comments
  • Thu, Jan. 15, 2:03 AM
    • Worried about the tough competition from fast-casual chains around the world, McDonald's (NYSE:MCD) is pursuing unique cafe experiments in Australia through a series of "learning labs."
    • Market experts note the company is concerned about competitors featuring healthier food choices, such as Shake Shack (SHAK) as well as Australian competitors including Grill'd and Mad Mex. Yum Brands (YUM) is also branching out down under.
    • McDonald's serves a significant percentage of Australia's 23.5M population with 930 restaurants in the country, serving 1.7M customers a day.
    | 3 Comments
  • Wed, Jan. 14, 9:17 AM
    • A slide in retail sales during December was impacted by weakness with the electronics stores (BBY, CONN, HGG) and building materials/garden equipment (HD, LOW) categories.
    • The biggest drag on the index was the gasoline stations component (CASY, PTRY]]) which recorded a 6.5% M/M and 14.2% Y/Y decline in December.
    • Good news for the restaurant sector (MCD, QSR, YUM, SONC, WEN) as sales were up 0.8% M/M and 8.2% Y/Y during the month.
    | 3 Comments
  • Wed, Jan. 14, 7:39 AM
    • Pizza Hut (NYSE:YUM) will introduce gluten-free pizza at 2.4K stores later this month.
    • The chain will be the first fast-fast player to be certified by the Gluten Intolerance Group, although Domino's has offered the variety since 2012.
    • Gluten-free pies will be priced at $9.99.
    | Comment!
  • Tue, Jan. 13, 1:04 PM
    • Barclays sees dividend payouts on the S&P 500 increasing 7% this year to reach a yield of close to 2%.
    • The investment firm recommends buying shares of companies in the index poised for top-line growth and dividend payout boosts.
    • At least 6 consumer products/services companies make the Barclays list of attractive dividend stocks.
    • Hershey (NYSE:HSY): 2.01% yield
    • Yum Brands (NYSE:YUM): 2.24% yield
    • PepsiCo (NYSE:PEP): 2.70% yield
    • Lorillard (NYSE:LO): 3.80% yield
    • Wyndham Worldwide (NYSE:WYN): 1.63% yield
    • Macy's (NYSE:M): 1.89% yield
    | 19 Comments
  • Fri, Jan. 9, 1:38 PM
    | 5 Comments
  • Fri, Jan. 2, 2:54 PM
    • Janney Capital Markets dived into the restaurant sector before pulling out its top two picks for 2015.
    • Yum Brands (YUM -0.6%): Janney thinks the stock absorbed much of the downside risk news and could see activist investors arrive on the scene this year.
    • Papa John's (PZZA +2.4%): The pizza chain is viewed as a beneficiary of an increased pace of consumer spending in the U.S.
    | 1 Comment
  • Fri, Jan. 2, 9:10 AM
    • Share of Yum Brands (NYSE:YUM) are on watch after concerns in Hong Kong over chickens infected with H7 avian flu crop up this week.
    • A ban of chicken imports from Mainland China is possible, according to South China Morning Post.
    | 2 Comments
  • Dec. 24, 2014, 9:57 AM
    • The restaurant industry will run up against soft comps in January and February due to last year's winter storms which were much worse than normal.
    • Restaurant same-store sales will rise just over 2% for the full year, according to an estimate from the co-founder of the NRN-MillerPulse tracking survey.
    • Technomic sees a 3% growth in restaurant comps in 2015, while Fitch Ratings has an outlook for 2% to 3%.
    • On the cost side, commodity prices for chicken, cheese, wheat, and pork are all expected to moderate. However, beef prices are seen increasing 4% to 8%.
    • Minimum wage increases in many state kick in on January 1 which could impact the bottom line for many chains.
    • Fresh IPOs, concept acquisitions, and leveraged buyouts care expected to be major themes in 2015, according to analysts.
    • CEOs on the hot seat include Don Thompson at McDonald's (NYSE:MCD) and Nigel Travis at Dunkin' Brands (NASDAQ:DNKN).
    • Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, BOBE, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR.
    | 18 Comments
  • Dec. 11, 2014, 2:43 PM
    • Local KFC's within China will be given more autonomy in offering menu items and setting prices, says Joey Wat, Yum's (YUM +2.5%) new president of KFC China, noting consumers in the big cities have higher incomes and different preferences than those in smaller towns.
    • Other changes include things like premium coffee, more use of Chinese celebrities in ads, free Wi-Fi, and a reinvigorated child's menu.
    • Investor & Analyst Conference webcast
    • November same-store sales in China are looking down 15% from a year ago, says the company, but December shouldn't be as bad. Average restaurant sales three years ago in China were $1.7M annually, a number that's since fallen to just $1.35M.
    • Meanwhile, dealReporter says activist investor 3G Capital is sniffing around the company.
    • Previously: Is Yum Brands next for 3G? (Dec. 10, 2014)
    | Comment!
  • 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.
    | Comment!
  • Dec. 9, 2014, 5:36 PM
    | Comment!
  • 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.
    | Comment!
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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