Nov. 22, 2013, 1:26 PM
- Yum Brands (YUM +4.2%) approves a $750M stock buyback allowance which comes on top of the company's existing repurchase plan.
- There's no question Yum is partial to giving cash back to investors. In the last five years, the restaurant chain operator has returned $5.8B to shareholders in dividends and through buybacks.
Nov. 21, 2013, 8:26 AM| 2 Comments
Nov. 20, 2013, 10:36 AM| Comment!
Nov. 14, 2013, 8:42 AM
- Scientists have determined that a woman in Taiwan was infected with H6N1 bird flu, a new strain that has created some worry in the region.
- Pharmaceutical companies have reported success in fighting various bird flu strains, but worries of a pandemic still persist with every variety not covered.
- Yum Brands (YUM) is one of the stocks most sensitive to bird flu news.
Nov. 12, 2013, 4:32 PM
- The October decline is much smaller than the 11% Y/Y decline YUM reported for September, and the 10% drop reported for August. It's arguably a sign the bird flu-related fears that have badly damaged Yum's 2013 Chinese sales are moderating a bit. (8-K)
- KFC same-store sales fell 7% in October vs. 13% in September. Pizza Hut Casual Dining sales fell 10%.
- Shares +0.7% AH
Oct. 23, 2013, 1:53 PM
- Another outbreak of the bird flu in China poses a concern for Yum Brands (YUM -2.8%), reasons Janney Capital Markets.
- The likelihood that more humans will contract the H7N9 illness in China at some point this winter and create a media firestorm is enough for the investment firm to reduce sales estimates on KFC China.
Oct. 22, 2013, 9:08 AM| Comment!
Oct. 18, 2013, 8:13 AM
- A major storm is brewing over the low wages paid to fast-food workers and the cost to U.S. taxpayers of the group's reliance on public safety nets as it lives off the sub-$10 per hour wages.
- The National Employment Law Project estimates it costs the public close to $7B to sustain the families of fast-food workers through initiatives such as food stamps, the Children's Health Insurance Program and the Earned Income Tax Credit.
- It's a cost that at some point the American public may demand be shared by the major players in the restaurant sector.
- Fast-food chains in focus: McDonald's (MCD), Burger King (BKW), Wendy's (WEN), Taco Bell (YUM), Dunkin' Donuts (DNKN), Subway.
Oct. 11, 2013, 10:33 AM
Oct. 9, 2013, 9:12 AM
Oct. 8, 2013, 5:33 PM
Oct. 8, 2013, 4:43 PM
- YUM's Chinese same-store sales fell 11% Y/Y in September (13% at KFC), slightly worse than August's 10%. Moreover, the company now thinks it's "unlikely China Division same-store sales will be positive for the fourth quarter."
- Thanks to China and a higher-than-expected tax rate, Yum now expects 2013 EPS to be down by a "high-single to low-double-digit percentage" Y/Y; the consensus is for a 6% drop to $3.06. 2014 EPS growth of "at least 20%" is promised.
- Same-store sales were flat in the U.S. and up 1% for Yum Restaurants International (YRI). Yum's global restaurant margin fell 1.3% Y/Y to 17.6%.
- The China unit had a $335M op. profit -11% Y/Y. It added 132 restaurant units in Q3, raising its YTD total to 458. Sales +1% Y/Y.
- YRI had a $163M op. profit, -6% Y/Y. 215 new units were added. Sales +1%. India division same-store sales were flat, but systems sales rose 24% thanks to unit growth.
- The U.S. division had a $164M op. profit, +1% Y/Y. Growth would've been 6% if not for refranchising.
- YUM -6.5% AH. CC at 9:15AM ET tomorrow. Q3 results, PR.
Oct. 8, 2013, 4:23 PM
Oct. 8, 2013, 12:10 AM
Oct. 7, 2013, 5:35 PM
Oct. 7, 2013, 1:31 PM
- Concerns about food safety continue to be a drag on demand for Yum Brands (YUM +0.3%) in China.
- Same-stores sales in the region have remained depressed for long enough that some analysts now wonder if the sky-high growth rates will ever return.
- Once a China play, the company has seen operating profit from China plunge to $222M for the first half of the year while U.S. operations contributed $338M to the Yum's bottom line.
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