Yum! Brands had somewhat of a mixed result for the fourth quarter. Earnings per share (EPS) came in at $1.04 a share, beating analysts’ estimate of 96 cents a share. However the EPS was -17.5% lower compared to the same quarter the prior year.
Revenue of $1.558 billion fell short of analysts expectations, and also was slightly less than the year-ago quarter’s figure. However, worldwide same-store sales increased +3%, exceeding analysts' estimate of +2.48% (based on Refinitiv data).
CEO Greg Creed said, "Focus on our four growth drivers, increased collaboration and a new mindset are fueling strong results." He also mentioned, "During 2018, system sales grew 5% with same store sales growth of 2%, and net unit growth of 4%, excluding the impact of Telepizza.”
On April 10, 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where YUM advanced for three days, in of 351 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on April 12, 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 April 04, 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 43 similar instances when the indicator turned negative. In of the 43 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 (4.070). P/E Ratio (24.657) is within average values for comparable stocks, (55.679). Projected Growth (PEG Ratio) (2.306) is also within normal values, averaging (1.972). Dividend Yield (0.018) settles around the average of (0.035) among similar stocks. P/S Ratio (5.552) is also within normal values, averaging (3.254).
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 84, 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 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 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