Yum! (YUM, $101.27) beats Q1 earnings expectations, despite a few hiccups
Yum! Brands edges past Wall Street expectations for the first quarter 2019.
The owner of several fast food chains reported first-quarter adjusted earnings of 82 cents a share, which surpassed analysts' expectations of 81 cents.
On an unadjusted basis, Yum’s first-quarter net income dropped -39% to $262 million (or 83 cents per share), from $433 million, (or $1.27 per share) of the year-ago quarter. Yum’s investment in 3% of Grubhub subtracted 5 cents per share off its earnings during the quarter.
Total revenue of $1.25 billion was in line with Wall Street's estimate. However, the figure was lower from the year-ago quarter’s $1.37 billion. Worldwide same-store sales for the quarter increased +4% year-over-year (compared to analysts’ expectation of +2.7%). Among the restaurants owned by the company, Pizza Hut’s same-store sales broke even (compared to analysts’ expected +0.4%), Taco Bell’s grew +4% (compared to analysts’ expected +4.6%) and KFC’s increased +5% (compared to analysts’ expected +3%).
CEO Greg Creed credited the quarter’s strengths largely to the KFC division and Taco Bell U.S. According to Creed's call with analysts, the international division’s same-store sales growth lagged behind that of its domestic market.
According to Yum, it bought back 1.1 million shares worth $106 million at an average price of $94 a share during the quarter.
YUM in upward trend: price rose above 50-day moving average on November 22, 2024
YUM moved above its 50-day moving average on November 22, 2024 date and that indicates a change from a downward trend to an upward trend. In of 42 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for YUM just turned positive on November 25, 2024. Looking at past instances where YUM's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for YUM crossed bullishly above the 50-day moving average on November 11, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where YUM advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 232 cases where YUM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where YUM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on December 12, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on YUM as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 November 07, 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 low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (10.683). P/E Ratio (25.914) is within average values for comparable stocks, (56.661). YUM's Projected Growth (PEG Ratio) (2.436) is slightly higher than the industry average of (1.836). Dividend Yield (0.019) settles around the average of (0.038) among similar stocks. P/S Ratio (5.456) is also within normal values, averaging (8.636).
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
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General Information
a company that owns and franchises quick-service restaurants
Industry Restaurants