Yum Brands posts 3Q profit, results miss Street expectations

We’re pleased same-store sales turned positive and we achieved restaurant margins of almost 20% in our China business.

He added that growth fundamentals of Yum!

However, the company’s efforts to capitalize on high-growth emerging markets like Russian Federation, Southeast Asia, Africa and Latin America for future growth could partially mitigate these headwinds.

Investors purchased shares of Yum!

Adjusted earnings per share of $1 missed the analysts’ consensus estimate of $1.05, according to Bloomberg.

The analyst also noted that with Yum now trading at about 19x his revised 2016 earnings-per-share forecast, which implies a multiple of roughly 8x for China.

“We are also pleased with our progress in several key markets, particularly Mainland China, where we generated healthy sequential growth in both sales leaders and revenue”, CEO Truman Hunt said press release in August. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The revision was made after the company issued its quarterly results, which led to the stock trading in the red for the second consecutive day. Brands’ China division. Further, the increasing preference for healthy and nutritious food among US consumers, along with intense competition, is denting the company’s domestic sales. As I highlighted in my previous article, the Louisville, Kentucky-based company was expected to struggle on the back of the weakness in China and a strengthening dollar, but the results were worse than expected.

Energy companies rose more than the rest of the market. Taco Bell’s same-store sales growth was boosted by insight-driven innovation coupled with industry-leading value. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of Yum! “It didn’t really fit into its wheelhouse, and it was more of a complication”. This is the eleventh year in a row that Yum has increased its dividend by double-digits on a percentage basis.

The two stocks have charted very different courses since PepsiCo spin off Yum in 1997. The 52-week high of Yum! Analysts had anticipated for the company to report EPS of $1.05 from revenues of $3.635 billion.

STRONG SAMSUNG: Shares of Samsung Electronics closed up almost 9 percent, marking its biggest daily gain since January 2009, after announcing a forecast-beating profit for the third quarter. Yum Brands’s stock is down -4.32% in the past 200 days.

The Dow Jones industrial average was up 75 points, or 0.5 percent, to 16,865 as of 1:45 p.m. Eastern time.

“While KFC in the U.S.is still a small component of the global brand, it continued its steady progress with transactions plus 4 percent to the category, as the innovation pipeline is now starting to be a force”, Creed said. $536.55 million flowed into the stock on the tick-up and $457.92 million flowed out of the stock on the tick-down, for a money net flow of $78.63 million into the stock.