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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Tuesday May 25, 2021, 12:26:00
By Ryan D. Lavender
Earlier today, Yum Brands hosted a virtual Analyst Meeting, focused on its KFC business. Management says that in terms of worldwide units, KFC is only about a third of the way to its potential; “we’ll be growing the brand for years.” As of the end of 2020, KFC had 25,000 units, so this statement implies a (very) long-term goal of roughly 75,000 KFC restaurants worldwide.
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