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.
Wed, Feb. 4, 4:16 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.
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
Oct. 6, 2014, 5:35 PM
Sep. 3, 2014, 4:56 PM
- Thanks to the uproar over the practices of ex-food supplier OSI Group/Shanghai Husi, YUM now expects its FQ3 (Aug. quarter) Chinese same-store sales to be down 13% Y/Y. (8-K)
- The fast-food chain owner says Chinese sales are "beginning to rebound," but "continue to be negative." It plans to "vigorously pursue legal action against OSI and Husi to recover damages from the incident."
- Shares -3.5% AH. Yum had already announced on July 30 its Chinese KFC/Pizza Hut sales have been badly hit by the OSI scandal. The company's FQ2 Chinese same-store sales (boosted by a post-Avian flu rebound) were up 15%.
Jul. 16, 2014, 5:30 PM
- YUM's worldwide system sales rose 6% Y/Y in Q2, better than Q1's 4% growth. Restaurant margin rose 300 bps to 15.5%.
- China division sales (clobbered last year by avian flu issues) +21% vs. +15% in Q1. Same-store sales +15%, unit growth +7%.
- KFC division sales +5%, same-store +2%. Pizza Hut division -1%, same-store -3%. Taco Bell division +3%, same-store +2%. India division +18%, with 25% unit growth more than offsetting a 2% same-store drop.
- Yum still plans to open at least 700 new restaurants in China, and 1,250 in other foreign markets. The company is "taking significant actions" to improve the performance of its U.S. Pizza Hut ops (previous).
- China division restaurant margin jumped 620 bps to 16.8%, while the Pizza Hut division's restaurant margin fell 640 bps to 7.2%. Taco Bell's restaurant margin fell 270 bps to 17.7%, and KFC's rose 30 bps to 12.9%.
- $346M has been spent on buybacks YTD, up from $170M at the time of the Q1 report.
- YUM -2.5% AH. Q2 results, PR.
Jul. 16, 2014, 4:11 PM
Jul. 15, 2014, 5:35 PM
May. 29, 2014, 10:21 AM
- Shares of Popeyes Louisiana Kitchen (PLKI +10.7%) shoot higher after the company beats estimates with its FQ1 report.
- The company showed stronger sales trends than rivals with a 4.5% rise in global comparable-store sales. By comparison, the KFC division of Yum Brands (YUM +0.1%) showed a 4% drop in comp sales in the U.S. during its last quarter.
- Popeye's improved its market share of the domestic chicken-QSR segment by 210 bps to 22.3% over the last year.
Apr. 22, 2014, 5:29 PM
- YUM's worldwide system sales rose 4% Y/Y in Q1 vs. 5% in Q4. Restaurant margin rose 330 bps Y/Y to 19.2%.
- The China division continued to rebound from last year's avian flu-related woes: Same-store sales rose 9% Y/Y (11% at KFC), and system sales 20%. The division's restaurant margin rose 680 bps to 23.4%.
- KFC division system sales +4%, same-store +1%. Pizza Hut system sales flat same-store -2%, Taco Bell system sales flat, same-store -1%, India division +21%, with 25% unit growth offsetting a 1% same-store decline.
- $170M has been spent on buybacks YTD. Food and paper costs equaled 26.6% of revenue vs. 26.8% a year ago.
- Yum plans to open at least 700 new Chinese restaurants this year, and 1,250 in other international markets. The company still expects at least 20% 2014 EPS growth.
- Q1 results, PR
Apr. 22, 2014, 5:15 PM
Apr. 22, 2014, 12:10 AM
Apr. 21, 2014, 5:35 PM
Feb. 3, 2014, 4:58 PM
- Same-store sales declined 4% in China, and 2% in the U.S. They grew 2% at YRI.
- In China, KFC same-store sales fell 4% during the Q and 15% for 2013. Pizza Hut same-store sales grew 5% in the Q and 4% for the year.
- Worldwide restaurant margin fell 20 basis points to 14.2%, including a 30 bp decline in the U.S. and 140 bp decline at YRI. Margins 40 bps higher in China.
- CEO David Novak: "We are confident we have the people and resources to deliver at least 20% EPS growth in 2014 and re-establish our track record of double-digit EPS growth."
- 10.9M shares repurchased during 2013 at an average price of $69 each.
- CC tomorrow at 9:15 ET
- Press release, Q4 results
- YUM +3.6% AH
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