Yum Brands Inc
Latest Yum Brands Inc News and Updates
Why more Europeans could be eating at McDonalds and Yum!
Employment could be turning around The below chart shows employment growth for countries in Europe. The Eurozone, which only includes countries using the euro (so, excluding the United Kingdom and Russia), has been experiencing a declining growth rate over the past two years. While the overall growth was in positive territory from mid-2010 to mid-2011, […]
Could Yum! Brands’ Margins Increase in 1Q16?
With positive same-store sales growth expected in all three of YUM’s divisions, analysts are expecting the leverage to improve the company’s margins.
Why Analysts Say ‘Hold’ for Domino’s Stock ahead of Q1 Earnings
As of April 21, 2017, Domino’s Pizza (DPZ) was trading at $179.3. Domino’s stock price might have factored in the estimates we discussed in our previous articles.
US Retail Sales Flat in April on Rising Oil Prices, Yet XRT Up 1%
Retail sales in the United States in April didn’t see any growth over March’s sales figures. But the jobless claims reading brought some positive news for the consumer sector.
Why Did Domino’s EBIT Margin Decline in 2Q17?
For 2Q17, Domino’s (DPZ) posted EBIT (earnings before interest and tax) of $113.27 million, which represents an EBIT margin of 18.0%, compared with 18.9% in 2Q16.
Strength in Initial Jobless Claims Is Positive for Restaurants
Initial jobless claims can help us gauge the health of the US labor market. It indicates the number of people filing for unemployment.
What Could Drive Starbucks’s Same-Store Sales Growth in 2016?
Over the past four quarters, Starbucks’s same-store sales growth has increased due to growth in ticket and traffic.
Why Have Analysts Raised their Revenue Estimates for Papa John’s?
In 1Q16, PZZA’s domestic company-owned restaurants generated nearly 48% of Papa John’s revenue, while domestic commissaries and others generated 39.4%.
Beef Prices: 2015–2016 Outlook for the Restaurant Industry
Although beef prices recently increased slightly, they’ve been on a downtrend trend since the beginning of 2015. They’re expected to remain elevated for the rest of 2015.
Why Are Analysts Expecting Papa John’s EBITDA Margins to Expand in 2Q16?
Analysts expect Papa John’s (PZZA) to post EBITDA of $43.9 million in 2Q16. This represents an EBITDA margin of 10.6%, compared to 10.3% in 2Q15.
Starbucks Analysts: Their Ratings and Their Targets
Looking at analysts’ ratings for Starbucks, about 79% of analysts have “buy” recommendations for Starbucks, 21% have “hold” recommendations, and none has “sell” recommendations.
Valuation Multiples of Key Restaurant Players
Where are some of the major restaurant companies such as Starbucks, Chipotle, Panera, and Yum! Brands trading from a valuation standpoint? Over the past month, US markets have experienced high volatility.
Yum! Brands’ Management Initiatives and Outlook for 2015
Management stated that it expects the second quarter EPS to lag by 20% YoY. It expects full-year EPS growth of 10% in 2015.
Papa John’s Revenue Estimates for the Next 4 Quarters
For the next four quarters, analysts expect Papa John’s (PZZA) to post revenue of $1.83 billion, which represents growth of 5.5%.
Where Will Yum! Brands Trade in the Next Few Quarters?
Yum! Brands has a forward PE ratio of 25x. This indicates that the stock is valued fairly. It’s a stable company with a long history of EPS growth.
Should Investors Worry about Panera’s High Valuation?
In this part, we’ll look at how the company’s valuation PE (price-to-earnings multiple) affects Panera’s stock price.
Factors That Drove Papa John’s Same-Store Sales Growth in 1Q17
In 1Q17, Papa John’s (PZZA) restaurants in North America posted SSSG of 2%. Company-owned restaurants posted SSSG of 3%, and franchised restaurants posted SSSG of 1.7%.
Restaurant Capex Outlook Remains Elevated in May
The expected capital expenditure index increased by 0.9% to 100.8 in May from 101.7 in April.
Why Yum! Brands Is Expected To Report Lower EBITDA
Wall Street analysts’ estimated EBITDA for the fourth quarter is $633 million—compared to $918 million in the same quarter last year.
Why Papa John’s Earnings Margin Narrowed in 2Q17
Performance in 2Q17 In 2Q17, Papa John’s International (PZZA) posted EBIT (earnings before interest and tax) of $37.2 million, which represents an EBIT margin of 8.6%. In comparison, the company posted an EBIT margin of 8.7% in 2Q16. Why Papa John’s margins narrowed Papa John’s EBIT margins were impacted by a rise in the cost of […]
Why Investors Are Confident in YUM ahead of Its 3Q16 Results
Yum! Brands develops, operates, franchises, and licenses the Pizza Hut, KFC, and Taco Bell brands. It’s set to announce its 3Q16 results on October 5, 2016.
Franchising Dominates Papa John’s Expansion Plans
With 42 units added in the first two quarters of 2016, Papa John’s has maintained its 2016 guidance for unit growth at 180–200 units.
Yum! Brands’ 4Q15 Same-Store Sales Growth Is 2% in China
Following its dismal performance in 3Q15, Yum! decided to release its same-store sales growth performance for China on a monthly basis.
Comcast Moves To Boost Growth In Business Unit
In 3Q17, Comcast’s Business Services segment generated revenues of $1.6 billion, which rose 12.6% year-over-year.
Could Domino’s Earnings Rise in the Next 4 Quarters?
Earnings expectations For the next four quarters, analysts expect Domino’s Pizza (DPZ) to post EPS (earnings per share) of $6.14, which represents a growth of 22.3% from the EPS of $5.02 seen in the four quarters prior. EPS growth Domino’s EPS growth is expected to be driven by higher revenue, EBIT (earnings before interest and tax) […]
When Will Yum! Complete the Separation of Its China Division?
On October 20, Yum! announced that it will separate its China division from the rest of its business. It’s expected to complete this by the end of 2016.
Why Are Pork Prices Stabilizing?
Pork prices have dropped significantly in 2015 from the high of $1.38 per pound in June 2014 to the low of $0.65 per pound in March 2015.
Analysts Revised the Price Target after McDonald’s Earnings
Wall Street analysts set a price target of $125.1 for the next 12 months with a return potential of 5% from the closing price of $119.2 on January 25.
This Likely Drove Domino’s 3Q17 EPS
For 3Q17, Domino’s Pizza (DPZ) posted adjusted EPS (earnings per share) of $1.27, which represents a 32.3% YoY (year-over-year) rise from $0.96 in 3Q16.
Why poor comps affected McDonald’s revenues
With disappointing same-store sales performance across all four segments, it isn’t surprising that McDonald’s reported revenues of $6,987 million—a 4.5% decline.
Bloomin’ Brands loses to its peers in year-to-date returns
As of September 20, 2014, year-to-date (or YTD) returns for Bloomin’ Brands (BLMN) was -30.7%.
BYND Leads Alt-Meat Market, Faces New Competitors
On Friday, investment bank UBS started coverage on Beyond Meat Stock (BYND). At 10:08 AM ET today, the stock was trading 4.4% lower at $76.5.
Retail Sales Reports From ICSC-Goldman And Johnson Redbook
The ICSC-Goldman and Johnson Redbook indices both report consumer spending data each week, but people consider the ICSC-Goldman index to be more consistent.
Must Know: Analysts’ Price Target for Chipotle Mexican Grill
About 47% of analysts have “buy” recommendations on Chipotle, 50% of analysts have “hold” recommendations, and 3% have “sell” recommendations on the company. Overall, the stock has a “buy” rating.
Why Yum! Brands’ division in China is important
Yum! Brands’ (YUM) division in China includes its business in mainland China. It’s the combined revenues from all the brands—KFC, Pizza Hut, East Dawning, and the Little Sheep.
Shake Shack Management’s Guidance for 2015: Key Takeaways
During the latest earnings call, Shake Shack’s (SHAK) management offered revenue guidance in the range of $159 million to $163 million in 2015.
Chipotle Delivers: It Brings Back Carnitas
On September 28, Chipotle’s management announced that it was able to resume serving carnitas in 90% of Chipotle’s restaurants.
Is Starbucks’s Enterprise Multiple Trading High?
Starbucks’s current EV (enterprise value) to EBITDA multiple stands at 17x, which is close to the company’s historical high point of 17.6x and similar to its PE.
Analyzing Burger King’s shifting business model focus in 2Q14
Franchise revenues include royalties and franchise fees. Royalties are calculated as a percentage of franchise restaurant revenues, which are driven by same-store sales.
McDonald’s Risks, Strengths, and Weaknesses
The restaurant industry is susceptible to a wide array of risks of macro and micro factors. As a huge global brand, McDonald’s faces several risks.
Starbucks Year-To-Date Returns Soar to 7.5%
The Starbucks year-to-date return was 7.5% compared to an average return of 4.9% among its rivals.
Starbucks’ strategy: Aggressive unit growth
Unit growth is a key driver that Starbucks is aggressively pursuing to grow the company’s sales. In the last 12 months, Starbucks has added 1,599 net new restaurants, or 8% growth in units.
Must-know: McDonald’s pricing and marketing initiatives in 3Q14
During the third quarter, McDonald’s launched its “Our food. Your questions” campaign. It enables communication between McDonald’s and its customers.
Why Tim Hortons introduced a mobile app and loyalty cards
Along with introducing new products like those we discussed in the previous part of this series, Tim Hortons (THI) is also testing different revenue channels and payment methods.
Must-know: Investors’ reactions to Wendy’s earnings
Share volume was ~14.4 million shares, compared to the 50-day average daily volume of ~4.7 million, according to NASDAQ. Wendy’s closed 2.2%, up at $8.16. Wall Street analyst consensus estimated an adjusted earnings per share (or EPS) of $0.09.
Pizza Companies: Why Stock Prices Are Struggling
Since the beginning of 2017, Papa John’s, Domino’s Pizza, and Yum! Brands have returned -16.2%, 15.1%, and 20.7%, respectively.
Chipotle’s 1Q15 Earnings Per Share Up 47%
Chipotle reported its 1Q15 EPS of $3.88, which increased an impressive 47%, compared with an EPS of $2.64 in the corresponding quarter in 2014.
Analyzing Shake Shack’s Fine-Casual Concept
Shake Shack is conceptualized as a “new fine-casual” restaurant format. The fine-casual restaurant is a hybrid of the fine dining and fast-casual dining formats.
Why McDonald’s took a big hit in China
China is part of the APMEA region. Same-store sales were down 22.7%. Approximately 5,000 restaurants were affected when McDonald’s suspended its meat supplier.
Must-know: Yum! Brands’ segments by business models
For six months ending June 2014, China’s division reported revenue of $3 billion, or 52% of Yum! revenues. China only represents 15% of the more than 40,000 Yum! restaurant units.
Why Yum! Brands’ division in India has been successful
Yum! Brands’ (YUM) division in India includes its businesses in India, Nepal, Bangladesh, and Sri Lanka. As of June 2014, the company had 714 restaurant units in India.
Restaurant Operators’ Capital Expenditure Outlook Increased
As of December 2014, the six-month outlook for capital expenditure plans was 102.4. It has been above 100 levels for the past 12 months.
Must-know: Yum! Brands’ Pizza Hut business
The first Pizza Hut opened in 1958. About one-third of Yum! Brands’ (YUM) total restaurant units in this segment were Pizza Hut at the end of 2013.
McDonald’s Global Presence and the Three-Legged Stool
McDonald’s, the world’s largest fast food chain, has over 38,000 restaurants across 120 countries. In 2018, it had approximately $21.0 billion in sales.
Must-know: Chipotle’s year-to-date performance
As of October 21, 2014, Chipotle Mexican Grill’s (CMG) year-to-date (or YTD) returns were~16.3%—compared to an average return of 8.3% on the S&P 500 Index.
The Word on the Street: What Analysts Are Recommending for Fast-Food and Pizza Companies after 1Q16
JACK, PZZA, and QSR are the most favored stocks in our group of eight fast-food restaurants, with no analyst recommending a “sell” for their stocks.
Domino’s management guidance on food costs, capex, and more
Management anticipates the effective tax rate to be in the range of 37% to 38% for the “foreseeable future.” Corporate tax rates in the U.S. are high, and force some companies to move their headquarters to countries offering lower tax rates.
Downward trend: McDonald’s November Same-Store Sales
McDonald’s November same-store sales indicate a continued slide in all segments. Tensions between Russia and Ukraine are partially to blame.
Why Burger King is improving its traffic through product innovation
Burger King (BKW) introduced premium products internationally that should complement its menu. It launched a Hashbrown Whopper in Korea, a Barbecue Bacon Whopper in the U.S., and a Mexican Whopper in Spain.
Declining Fuel Prices Will Continue To Help Restaurant Stocks
There is no way to know how long we could be seeing these lower fuel prices, but restaurants should certainly benefit from the decline.
Analysts’ Recommendations: Domino’s, Papa John’s, and Yum! Brands
Of the five analysts that follow Papa John’s, 60% recommend a “buy,” 40% recommend a “hold,” and none of the analysts recommend a “sell.”
Must-Know: What Is PEG Ratio and How Is It Used?
Investors use a bunch of metrics to determine if a stock is attractive. One such metric is the PEG or the price-to-earnings-to-growth ratio.
An Investor’s Guide to Chipotle and Its Customers
Chipotle Mexican Grill (CMG) operates more than 1,700 fast-casual restaurants. Here’s everything you need to know about the business.
ISM shows the highest non-manufacturing growth since August 2013
The Institute for Supply Management (or ISM) released the services Purchasing Managers Index (or PMI) report for April on Monday, May 5.
Wedbush Initiated Coverage on Papa John’s with a ‘Buy’ Rating
On Wednesday, Nick Setyan of Wedbush initiated his coverage on Papa John’s with a “buy” rating. He also gave a target price of $95.
Must-Know: McDonald’s Has Got Tough Competition
McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.
Things To Keep In Mind About Shake Shack’s IPO
Shake Shack (SHAK) filed for an initial public offering, or IPO, for $100 million through Class A common stock. Should you bite it?
Starbucks Drove More Traffic to Its Stores in 3Q15
Why traffic increased in 3Q15 Starbucks has a strong loyalty program known as My Starbucks Rewards, or MSR, with 10.4 million active members. Membership increased 28% year-over-year in 3Q15. This program is built into Starbucks’s (SBUX) existing technology ecosystem, which is scalable. As the company expands its breadth of services and innovates ways to reward […]
Why Low Corn Prices Are Good for Restaurants
About 38% of corn produced is used as animal feed in the United States. Naturally, a drop in the price of corn will have an impact on meat prices as well.
Could McDonald’s Valuation Multiple Rise from 3Q15?
Following its 3Q15 earnings, McDonald’s shares increased 8% on positive improvement expectations. The valuation multiple also rose 7.3% as a result of a share price increase.
Chipotle’s year-to-date return is in the red
As of February 6, Chipotle’s year-to-date returns were about -2%, compared to average returns of 1.7% on the S&P 500 Index.
McDonald’s Shares Rise 3% on 1Q15 Earnings Release
According to NASDAQ, McDonald’s shares closed at $97.84—up 3% from the previous day’s close. Share volume was also above-average.
Key Events for Consumer Stocks: February 5–9, 2018
On February 2, SocGen upgraded Mondelez International (MDLZ) to “buy” from “hold” and raised the target price to $55 from $45.
Restaurant Industry Outlook On Capital Expenditures
Restaurants make capital expenditures for various reasons. They do it to open new stores, purchase new equipment, and remodel existing stores.
How Is Dunkin’ Donuts Doing in Same-Store Sales Growth?
Overall same-store sales growth for Dunkin’ Donuts has been declining. The company had negative same-store sales growth in 2008 and 2009.
Why Yum! Brands’ restaurants have grown globally
Yum! Brands plans to open new locations in certain countries. Growing restaurant units is the first step to capturing customers in a market.
What to Expect for Yum! Brands’s Same-Store Sales Growth
Yum! Brands reported 1Q14 same-store sales growth of 3%, compared with 4% year-over-year. Sequentially, same-store sales growth improved from -2%.
Why McDonald’s same-store sales declined across all segments
During the earnings call, management stated that McDonald’s “hasn’t changed at the same rate as its customers’ eating out expectations” in its priority markets.
E. Coli Incidents Have Likely Hurt Chipotle Most in 4Q15
In late October 2015, Chipotle was the subject of a significant food safety issue. Restaurants in Oregon and Washington were linked to an E. coli outbreak.
Can McDonald’s Same-Store Sales Turnaround Continue in 4Q15?
By focusing on product innovations, a value menu, and time-limited offerings, McDonald’s increased same-store sales in 3Q15 globally. Analysts expect this trend to continue in 4Q15 as well.
Comparing Domino’s and Papa John’s Dividend Policies
Importance of dividends Dividends help smooth out return volatility for shareholders. Both Domino’s Pizza (DPZ) and Papa John’s (PZZA) have a strong history of returning cash to shareholders. . 3Q16 dividends In 3Q16, Domino’s Pizza paid dividends of $0.38, which represents a growth of 22.6% from $0.31 in fiscal 3Q15. For the next four quarters, […]
Why Analysts Expect Domino’s Margin to Expand in 1Q17
In 1Q17, analysts expect Domino’s Pizza (DPZ) to post EBIT (earnings before interest and tax) of $115.7 million, which represents an EBIT margin of 18.8%.
Domino’s Revenues Expected To Come In 8.7% Higher Year-Over-Year
Wall Street analysts estimate that Domino’s revenues for the quarter will come in at $616 million, meaning 37% sequential growth over 3Q14.
Must-know: Wendy’s forward-looking guidance
Management expects to reduce ~$8 million in general and administrative costs (or G&A) in the first quarter of 2015. The adjusted earnings before interest, taxes, depreciation, and amortization (or EBITDA) is expected to be further reduced by $5 million in 2015.
Are McDonald’s higher sales in Europe part of a larger trend?
In this series, we uncover the key indicators investors should know to help them stay calm and position themselves correctly in the restaurant market. Investing is an art and a science. There is no secret formula.
Wendy’s earnings per share down 9% in 4Q14
Wendy’s earnings per share were down 9% compared to its EPS of $0.11 in the fourth quarter of 2013.
Speculation that Ackman is urging a McDonald’s REIT spinoff
Even if a McDonald’s REIT spinoff is not in the cards, an activist investor who might push for a restructuring could be the catalyst McDonald’s needs.
Will Yum! Brands’ 1Q16 Results Drive Up Its PE Multiple?
There are various multiples available to evaluate a stock. We’re choosing the PE (price-to-earning) ratio due to the high visibility of Yum! Brands’ (YUM) earnings.
How 2Q15 Earnings Affected Dunkin’ Brands’ Valuation
Dunkin’ Brands’ valuation dropped from 26.8x before 2Q15 to 25.6x. Although analysts revised their next 12-month EPS estimate down to $2.04 from 2.05 per share, stock prices fell more.
Why Analysts Expect Papa John’s 2Q16 EPS to Rise
In 2Q16, analysts expect Papa John’s (PZZA) to post EPS of $0.54, which represents a growth of 14.1% from $0.47 in 2Q15.
Analysts Favor ‘Hold’ Recommendation for Domino’s Pizza
According to a Bloomberg survey of 17 analysts, 23.5% recommended a “buy” for Domino’s stock. About 70.6% recommended a “hold,” and 5.9% recommended a “sell.”
Shake Shack’s Revenue Growth Expected to Decelerate in 2016
Shake Shack is anticipating revenue in the range of $237 million–$242 million in 2016, compared to Wall Street analysts’ estimate of $241.3 million.
Why Analysts Suggest a ‘Hold’ for Domino’s Pizza
As of April 28, 2016, Domino’s Pizza (DPZ) was trading at $120.5. The share price might have already priced in the estimates that we discussed earlier in this series.
Chipotle’s bottom line grows 52% in 4Q14
Net income for Chipotle Mexican Grill (CMG) grew by 52% to $121.1 million year-over-year (or YoY) from $79 million in the corresponding quarter a year ago.
Chipotle’s Management Has Taken Initiatives to Buoy Its Image
Chipotle’s management has always been prompt and at times preemptive in fending off concerns that may hurt the company’s policy of “food with integrity.”
Current Same-Store Sales Rise For Restaurants
According to the NRA (National Restaurant Association), 72% of operators reported a gain in same-store sales over this period, and 11% reported a decline.
McDonald’s Supply Chain: A Must-Know for Investors
With over 38,000 restaurants, McDonald’s doesn’t make any of its products. Instead, it contracts with suppliers to meet its massive requirements.
Investors Should Consider Domino’s Pizza before Its Q2 Earnings
Domino’s Pizza (NYSE:DPZ) will likely report its second-quarter earnings on July 16. Should you buy the stock before its earnings?
Beyond Meat Continues to Expand—Should You Buy?
Just 15 days since introducing its products in China’s supermarkets, Beyond Meat launched its products in Brazil in association with St. Marche yesterday.
Domino’s Pizza Stock Rises following Positive Business Update
Domino’s Pizza announced that in the first two months of the second quarter, its US SSSG grew by 14.0%, while its international SSSG rose by 1.0%.