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Yum! Brands (YUM) Beats on Q4 Earnings, Revenues In Line
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Yum! Brands, Inc. (YUM - Free Report) posted fourth-quarter 2016 adjusted earnings of 79 cents per share, which surpassed with the Zacks Consensus Estimate of 72 cents by 9.7%. Further, earnings increased 19% year over year due to lower share count and higher revenues.
Meanwhile, total revenue of $2.02 billion also inched up 2.4% year over year primarily owing to higher franchise and license fees and income. Notably, revenues came in line with the Zacks Consensus Estimate.
Comps Discussion
From Jan 2016, the company’s India business integrated its three restaurant brands into the global KFC, Pizza Hut and Taco Bell divisions. Further on Oct 31, 2016, Yum! Brands’ completed the spin-off of the China business into an independent, publicly-traded company. Post-separation Yum! Brands now reports under three segments – KFC, Pizza Hut and Taco Bell.
The company aims to drive growth at KFC, Pizza Hut and Taco Bell brands via its strategic transformation plan. Notably, the company’s transformation and growth strategy entails employing greater focus on the development of its three iconic global brands, increasing its franchise ownership and creating a leaner and more efficient cost structure.
Comps at the KFC division were up 3% same as the year-ago quarter growth, but less than the prior-quarter growth of 4%. Growth was witnessed across the U.S. as well as international developed and emerging markets.
Pizza Hut comps declined 2%, comparing unfavorably with year-ago quarter’s flat comps as well as last quarter’s dip of 1%. Comps remained flat in international emerging markets but declined 2% and 4% in international developed markets and the U.S., respectively.
Taco Bell comps inched up 3% same as the prior-quarter growth, but less than the year-ago quarter growth of 4%.
While restaurant margins improved at KFC, it declined at the Pizza Hut and Taco Bell divisions.
Yum! Brands, Inc. Price, Consensus and EPS Surprise
Yum! Brands’ full-year adjusted earnings of $2.45 missed the Zacks Consensus Estimate of $2.54 by 3.5%. However, the figure increased from the year-ago quarter figure of $2.33 by 5.2%.
Full-year revenues of $6.37 billion were in line the Zacks Consensus Estimate, but declined 1.1% year over year.
Zacks Rank & Stocks to Consider
Yum! Brands has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Dave & Buster's Entertainment, Inc. (PLAY - Free Report) , Wingstop Inc. (WING - Free Report) and Papa John's International Inc. (PZZA - Free Report) . While Dave & Buster's sports a Zacks Rank #1 (Strong Buy), Wingstop and Papa John's carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dave & Buster's fiscal 2017 earnings climbed nearly 1% over the past 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 37.81%.
Wingstop posted positive earnings surprise in each of the last four quarters, with an average beat of 11.99%. Meanwhile, for 2016, EPS is expected to improve 21.3%.
Papa John’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 11.31%. Further, for 2016, EPS is expected to grow 20.9%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Yum! Brands (YUM) Beats on Q4 Earnings, Revenues In Line
Yum! Brands, Inc. (YUM - Free Report) posted fourth-quarter 2016 adjusted earnings of 79 cents per share, which surpassed with the Zacks Consensus Estimate of 72 cents by 9.7%. Further, earnings increased 19% year over year due to lower share count and higher revenues.
Meanwhile, total revenue of $2.02 billion also inched up 2.4% year over year primarily owing to higher franchise and license fees and income. Notably, revenues came in line with the Zacks Consensus Estimate.
Comps Discussion
From Jan 2016, the company’s India business integrated its three restaurant brands into the global KFC, Pizza Hut and Taco Bell divisions. Further on Oct 31, 2016, Yum! Brands’ completed the spin-off of the China business into an independent, publicly-traded company. Post-separation Yum! Brands now reports under three segments – KFC, Pizza Hut and Taco Bell.
The company aims to drive growth at KFC, Pizza Hut and Taco Bell brands via its strategic transformation plan. Notably, the company’s transformation and growth strategy entails employing greater focus on the development of its three iconic global brands, increasing its franchise ownership and creating a leaner and more efficient cost structure.
Comps at the KFC division were up 3% same as the year-ago quarter growth, but less than the prior-quarter growth of 4%. Growth was witnessed across the U.S. as well as international developed and emerging markets.
Pizza Hut comps declined 2%, comparing unfavorably with year-ago quarter’s flat comps as well as last quarter’s dip of 1%. Comps remained flat in international emerging markets but declined 2% and 4% in international developed markets and the U.S., respectively.
Taco Bell comps inched up 3% same as the prior-quarter growth, but less than the year-ago quarter growth of 4%.
While restaurant margins improved at KFC, it declined at the Pizza Hut and Taco Bell divisions.
Yum! Brands, Inc. Price, Consensus and EPS Surprise
Yum! Brands, Inc. Price, Consensus and EPS Surprise | Yum! Brands, Inc. Quote
2016 Results
Yum! Brands’ full-year adjusted earnings of $2.45 missed the Zacks Consensus Estimate of $2.54 by 3.5%. However, the figure increased from the year-ago quarter figure of $2.33 by 5.2%.
Full-year revenues of $6.37 billion were in line the Zacks Consensus Estimate, but declined 1.1% year over year.
Zacks Rank & Stocks to Consider
Yum! Brands has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Dave & Buster's Entertainment, Inc. (PLAY - Free Report) , Wingstop Inc. (WING - Free Report) and Papa John's International Inc. (PZZA - Free Report) . While Dave & Buster's sports a Zacks Rank #1 (Strong Buy), Wingstop and Papa John's carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dave & Buster's fiscal 2017 earnings climbed nearly 1% over the past 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 37.81%.
Wingstop posted positive earnings surprise in each of the last four quarters, with an average beat of 11.99%. Meanwhile, for 2016, EPS is expected to improve 21.3%.
Papa John’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 11.31%. Further, for 2016, EPS is expected to grow 20.9%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>