Seeking Alpha

YUM! Brands, Inc. (YUM)

  • 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!
  • 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.
    | Comment!
  • 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.
    | Comment!
  • 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.
    | 1 Comment
  • 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.
    | Comment!
  • 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.
    | Comment!
  • 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.
    | Comment!
  • 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.
    | Comment!
  • 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.
Visit Seeking Alpha's
YUM vs. ETF Alternatives
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