Wednesday October 31, 2018, 00:00:00
Earlier today, Yum Brands (YUM; Buy) reported adjusted Q3 EPS of $1.04, exceeding our $0.83 forecast and sell-side consensus of $0.83. However, this $1.04 figure includes a $0.22 boost from an update in the fair value of Yum’s investment in GrubHub (GRUB; Not Rated), which led to $94 million of pre-tax investment income. Excluding this $0.22 boost, adjusted Q3 EPS would have been $0.82, one cent below our forecast and consensus. We do note that G&A/Revenues of 14.7% were higher than our 14.4% estimate.