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.
On March 28, 2024, the Stochastic Oscillator for YUM moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 55 instances where the indicator left the oversold zone. In of the 55 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
The Momentum Indicator moved above the 0 level on March 28, 2024. You may want to consider a long position or call options on YUM as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 350 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 267 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 March 13, 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 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for YUM turned negative on March 13, 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 .
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 .
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 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 (7.368). P/E Ratio (24.803) is within average values for comparable stocks, (181.324). Projected Growth (PEG Ratio) (2.311) is also within normal values, averaging (1.952). Dividend Yield (0.018) settles around the average of (0.032) among similar stocks. P/S Ratio (5.583) is also within normal values, averaging (2.483).
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 81, placing this stock slightly better than average.
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 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 Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 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