Fri, May 15, 8:20 AM
- Shares of Yum Brands (NYSE:YUM) perk up in premarket action after JPMorgan issues an upgrade.
- The restaurant operator is taken to an Overweight rating from Neutral by JP and assigned a higher price target of $108.
- A spin-off of Yum's China business and investor activism are seen as two catalysts for share price appreciation.
- YUM +1.12% premarket to $91.03.
Fri, May 1, 9:47 AM
- Yum Brands (YUM +5%) moves higher in early trading after Third Point discloses a new position in the restaurant holding company its Q1 letter.
- The "significant" stake in Yum from Third Point is based on its forecast for a dramatic turn in profits.
- Previously: UBS stays positive on Yum Brands (May. 01 2015)
Tue, Apr. 21, 5:37 PM
Tue, Apr. 21, 4:24 PM
- Yum Brands (NYSE:YUM) trades higher after beating estimates for Q1 profit.
- China: Sales were off 6% with 8% unit growth outrun by a -12% same-store sales comp vs -14% expected. Restaurant margin -450 bps to 18.9% off of sales deleverage.
- KFC: Sales growth of 8% derived from 2% unit growth and 5% same-store sales growth. Operating margin i+180 bps to 26.3%.
- Pizza Hut: Revenue rose sales 2% led by 2% unit growth. Same-store sales came in flat. Operating margin -150 bps to 30.0%.
- Taco Bell: Sales up 9% on 3% unit growth and a 6% comp. Operating margin +520 bps to 26.6%.
- India: Sales increased 1%. Unit growth +18% offset by an 11% same-store sales decline.
- 294 stores were added to Yum' system during the quarter.
- Previously: YUM! Brands beats by $0.08, revenue in-line
- YUM +4.64% after hours.
Tue, Apr. 21, 4:13 PM
Wed, Feb. 4, 4:16 PM
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)
Dec. 10, 2014, 9:10 AM
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.
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.
Oct. 7, 2014, 4:17 PM
Sep. 3, 2014, 5:35 PM
Jul. 31, 2014, 9:11 AM| 4 Comments
Jul. 30, 2014, 4:47 PM
- YUM states it has seen "a significant, negative impact to same-store sales at both KFC and Pizza Hut in China over the past 10 days" due to an undercover report regarding the practices of food supplier Shanghai Husi (a division of OSI Group). (8-K)
- The report alleged OSI sold chicken and beef beyond its expiration date, among other things. Yum has already cut ties with OSI over the scandal.
- Yum, whose Chinese sales had been recovering after getting clobbered last year by avian flu-related issues, says it's "too early to know how quickly sales will rebound in China."
Jul. 21, 2014, 7:49 AM
- Yum Brands (NYSE:YUM) and McDonald's (NYSE:MCD) face a new food safety scare in China, having suspended orders from a Shanghai meat supplier while Chinese authorities investigate allegations that the company sold expired chicken and beef products.
- YUM and MCD apologized to customers following a TV report that showed workers picking up meat from a factory floor, as well as mixing meat beyond its expiration date with fresh meat.
- YUM has just begun to bounce back from the 2012 scare in its no. 1 market, while MCD says it may now face a product shortfall in its third-biggest market by store numbers.
- YUM -1.8% premarket; MCD -1%.
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