Thursday October 28, 2021, 09:22:35
By Mark Kalinowski
Earlier today, Yum Brands reported adjusted Q3 EPS of $1.22, ahead of our $1.10 forecast and sell-side consensus (according to Consensus Metrix) of $1.09. However, we calculate that: (1) pre-tax investment income of $52 million (“related to the change in fair value of our approximate 5% investment in Devyani International Limited, an entity that operates KFC and Pizza Hut franchised units in India that executed an initial public offering during the quarter”) added about +16 cents’ worth of EPS help, and (2) by our calculations, the Q3 adjusted tax rate of 18.9% added about +4 cents of EPS help (relative to our 21.5% forecast and consensus of 21.4%).
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Thursday July 29, 2021, 20:50:51
By Mark Kalinowski
Earlier today, Yum Brands reported adjusted Q2 EPS of $1.16, surpassing our $0.97 forecast and sell-side consensus (according to Consensus Metrix) of $0.96. We attribute the EPS beat primarily to: (1) better-than-expected same-store sales at Taco Bell and KFC U.S., (2) leverage achieved due to sales strength, and (3) a better-than-anticipated adjusted tax rate of 20.0% (versus our 21.5% projection and consensus of 21.5%).
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Wednesday June 16, 2021, 16:42:18
By Mark Kalinowski
With this report, we boost our Q2E same-store sales forecasts as follows: (1) for Taco Bell, up by +2 percentage points to +17% (according to Consensus Metrix, sell-side consensus is at +15.7%, although be aware that Yum Brands does not report its same-store sales out past the decimal point), and (2) for KFC U.S., up by +1 percentage point to +3% (consensus is at +2.5%).
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