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.
Momentum Indicator for YUM turns negative, indicating new downward trend
YUM saw its Momentum Indicator move below the 0 level on May 29, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned negative. In of the 88 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
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 Aroon Indicator for YUM entered a downward trend on June 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 67 cases where YUM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for YUM just turned positive on June 05, 2026. Looking at past instances where YUM's MACD turned positive, the stock continued to rise in of 47 cases 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 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
YUM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
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 88, 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 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 (5.734). P/E Ratio (24.334) is within average values for comparable stocks, (38.002). Projected Growth (PEG Ratio) (1.869) is also within normal values, averaging (1.606). Dividend Yield (0.019) settles around the average of (0.030) among similar stocks. YUM's P/S Ratio (4.983) is slightly higher than the industry average of (1.862).
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.
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General Information
a company that owns and franchises quick-service restaurants
Industry Restaurants
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