On Wednesday, Yum Brands posted quarterly earnings that missed analysts’ expectations.
The company, which owns several restaurant-chains such as Taco Bell, KFC and Pizza Hut, reported third quarter adjusted earnings of 80 cents a share, compared to analysts’ estimate of 94 cents.
Net revenue of $1.34 billion in the quarter was almost in line with the $1.344 billion expected by analysts. But the figure was -4% lower from the year-ago quarter.
According to Yum, changing the fair value of its GrubHub investment pulled down earnings by 15 cents per share. Last year, Yum bought a 3% stake in the third-party delivery app.
Yum’s Pizza Hut reported flat same-store sales growth, falling short of Wall Street’s estimates of +1.5%. Last quarter, executives said that Pizza Hut could shut down more than 400 stores to restructure franchisees’ businesses.
KFC narrowly missed same-store sales expectations. In the U.S., same-store sales declined by -1%.
However, Yum’s Taco Bell chain experienced same-store sales growth of +4%, which is higher than expectations of +3.5%. Executives said the chain had its fastest third quarter in five years with respect to service times.
During the quarter, Yum opened 389 net new restaurants across all three chains.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where YUM advanced for three days, in of 349 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Aroon Indicator entered an Uptrend today. In of 274 cases where YUM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for YUM moved out of overbought territory on April 30, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 01, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on YUM as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for YUM turned negative on May 01, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
YUM moved below its 50-day moving average on May 01, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where YUM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
YUM broke above its upper Bollinger Band on April 29, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. YUM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.160). P/E Ratio (23.819) is within average values for comparable stocks, (53.557). Projected Growth (PEG Ratio) (2.255) is also within normal values, averaging (1.989). Dividend Yield (0.019) settles around the average of (0.035) among similar stocks. P/S Ratio (5.453) is also within normal values, averaging (3.275).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company that owns and franchises quick-service restaurants
Industry Restaurants