But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Must-know: Yum! Brands’ year-to-date performance
As of October 17, 2014, Yum! Brands’ (YUM) year-to-date (or YTD) returns were 3.3%—compared to average returns of 8.34% on the S&P 500 Index.
On October 8, shares began trading at $70.86. The day’s high and low were $70.89 and $69.72, respectively. According to NASDAQ, YUM! Brands closed 2% down at $69.73.
For the company, the overall net income before extraordinary items grew 3% year-over-year (or YoY). However, the net profit margin declined slightly by 42 basis points to 14.23%.
Management lowered its full year earnings per share (or EPS) growth to 6% from 10% before special items. Management lowered the EPS due to the impact of weaker sales in China.
For the Pizza Hut division, management is focused on driving digital initiatives. According the company, digital initiatives were over 40%. This was an increase of over 5% from 2Q14.
In 3Q14, Yum! Brands (YUM) opened 55 KFC units, 55 Pizza Hut units, and 35 Taco Bell units in the U.S. and International division.
Pizza Hut sales had a disappointing quarter. It faced competition from other well-known brands—like Domino’s Pizza (DPZ), Papa John’s (PZZA), and local pizza restaurants.
Yum! Brands’ China division is the highest revenue contributor. Negative events—like the meat scandal—decrease the number of customers that visit Yum! Brands’ restaurants.
The same-store sales growth in Yum! Brands’ China division was -14% in 3Q14—compared to -11% in the same quarter last year. Revenues also fell 9% YoY.
Yum! Brands (YUM) released its third quarter earnings on October 7, 2014. The company reported adjusted earnings per share (or EPS) of $0.87.
Enterprise value (or EV) is usually used to determine a firm’s takeover price. EV could be a useful tool to compare companies with different capital structures.
As an investor, you should know whether or not MGM’s (MGM) management is committed to its future. Management shows its commitment by owning shares.
Boyd Gaming (BYD) and MGM Resorts (MGM) own Borgata in a 50-50 joint venture. It’s one of the most popular casinos among poker players.
MGM’s average occupancy levels declined from 96% to 89% between 2007 and 2010. Occupancy levels improved after 2010. The levels reached 91% in 2013.
MGM’s mass market gaming outperformed the market in 2014. MGM Macau’s mass table games win per unit per day for the first half of 2014 is highest among its peers.
Share prices for most of the gambling stocks declined significantly over the last three months. MGM Resorts (MGM) declined 14.9%.
Fitch Ratings said that MGM Resorts’ debt maturities will “remain formidable” through 2016 when MGM’s free cash flows and heavy project pipeline expenditure are reported.
Return on capital employed (or ROCE) is a metric that’s used to compare profitability across companies. It’s based on the amount of capital being used.
Liquidity ratios determine a company’s ability to meet its short-term obligations. A company’s liquidity position can be measured by using the current ratio or the quick ratio.
A dividend is a portion of a company’s profits. The absence of dividends is common for companies like Caesars Entertainment (CZR) and Boyd Gaming (or BYD).