Dec. 9, 2014, 5:36 PM
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.
Dec. 8, 2014, 11:55 AM
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
Nov. 20, 2014, 4:28 PM
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.
Nov. 3, 2014, 2:57 PM
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.
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.
Oct. 14, 2014, 11:26 AM
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.
- Related stocks: MCD, BKW, SONC, JACK, YUM, PLKI, DENN, BOBE, CBRL, DIN, EAT, RRGB, TXRH, BH, FRS.
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.
Oct. 7, 2014, 4:45 PM
- With the OSI scandal taking a toll on Chinese sales, YUM's FY14 EPS growth is now expected to be in a 6%-10% range, below prior guidance for at least 20% growth.
- Worldwide system sales only rose 1% Y/Y in FQ3, a sharp slowdown from FQ2's 6% growth. Restaurant margin fell 270 bps Y/Y to 14.9%.
- China division sales -9% Y/Y, with 6% unit growth more than offset by a 14% same-store sales decline. Restaurant margin -460 bps to 14.9%.
- System sales for other divisions: KFC +6%, Pizza Hut flat, Taco Bell +4%, India +14%.
- Division same-store sales: KFC +3%, Pizza Hut -1%, Taco Bell +3%, India -4%.
- 400 new restaurants were created, 77% of which were in emerging markets. Yum still plans to open at least 700 new Chinese restaurants this year. Chinese restaurants +6% Y/Y in FQ3 to 6,419; Indian restaurants +26% to 736.
- YUM -0.9% AH. A rough earnings report was expected.
- FQ3 results, PR
Oct. 7, 2014, 4:17 PM
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