The firm has a 50-day moving average price of $80.51 and a 200-day moving average price of $85.64. The company shares have declined -12.62% from its 1-year high price. The euro rose to $1.1271 from $1.1268.
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After the market closed on Tuesday, Yum!
Worldwide system sales grew 6%. They note that at its peak, China contributed 40% of Yum’s sales, compared to 5% for Starbucks and in the low-single digit percentages for McDonalds.
Bond prices dipped. The yield on the 10-year US Treasury rose to 2.06 percent from 2.04 percent Tuesday, while the 30-year advanced to 2.89 percent from 2.87 percent. Its debt-to-equity ratio has decreased by 17.6% in 3Q15.
The analysts’ projections imply that its earnings and revenue will jump 21.84% YoY and 9.55% YoY in the recent quarter, respectively. Its worldwide effective tax rate was 24.8%. The division’s operating losses more than doubled to $8 million.
Yum Brands is essentially a holding company that restaurants like Taco Bell, KFC, and Pizza Hut fall under.
The company blamed a slow sales recovery in China after a food safety scandal last year and lowered its profit estimate for the full year to “well below” the 10 percent growth it expected previously.
Yum Brands Inc’s all-important China division took a hit this summer as businesses there pulled back on parties and events at its upscale Pizza Hut Casual Dining chain amid volatility in financial markets and cooling economic growth.
“We are always going to believe in China”, Creed said, adding Yum’s new China CEO Micky Pant has begun aggressively implementing discounted meals and box specials just six weeks into his tenure, with emphasis on drinks, which are especially profitable in the fast food business. But if Yum is any kind of canary in the China coal mine, then China could be an “unexpected headwind” for the entire global equity market.
“Our central goal remains building three iconic, global brands people trust and champion”.
The world’s biggest brewer Anheuser-Busch InBev on Wednesday raised its offer for British rival SABMiller to STG68 billion ($A144 billion), or STG42.15 per share, only to be told it was still too low to achieve one of the largest ever corporate takeovers.
Estimates for the year point to an EPS of $3.65 a share with 14% year-over-year growth in earnings. The stock plunged 19% in after-hours trading. It has outperformed the S&P500 Index, which has declined -3.94% over the same time period.
“Their performance has been OK, but it hasn’t been as great as what we’ve seen with Yum”, said Jack Russo, an analyst at Edward Jones in St. Louis. 26,227,765 shares of the company were exchanged.
I would not own Yum Brands stock, and unless you have a serious appetite for risk, it’s probably not wise to either.
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To position Yum for growth, Kalinowski suggested that Taco Bell should be spun off. Yum should also divest all other brands besides KFC and Pizza Hut, including China-based “hot pot” Little Sheep chain, the Banh Shop in Texas and Atto Primo in Shanghai.
