Wednesday November 2, 2022, 09:57:22
By Mark Kalinowski
Earlier today (Wednesday), Yum Brands reported adjusted Q3 EPS of $1.09, short of our $1.14 projection and consensus of $1.15. However, the adjusted Q3 tax rate of 26.7% was meaningfully higher than our 21.7% estimate and consensus of 21.6%. By our calculations, this difference cost Yum Brands about -7 cents in Q3 EPS. In other words, if the Q3 adjusted tax rate had matched our estimate, then Q3 adjusted EPS would have been $1.16 — two cents above our forecast and one cent above consensus.
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Thursday October 20, 2022, 07:00:00
By Mark Kalinowski
On August 3rd, Yum Brands indicated that it anticipates the full-year 2022 impact on its operating profits from currencies to be in the -$70 million to -$90 million range. By our calculations, the EPS effect of this range would be -19 cents to -24 cents. However, since that date, currencies have continued to move against Yum Brands.
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Thursday September 29, 2022, 07:00:00
By Mark Kalinowski
Appearing at a competitor conference this past September 20th, Yum Brands CFO Chris Turner made some remarks about potential acquisitions: “We’re keeping our eyes open. To do something that’s a bet-of-the-company size, that would be a really, really high bar before we decide to do something like that. But, I think you could imagine us being really interested in a smaller brand like Habit [which Yum acquired in March 2020], and saying, how can we unlock growth? Of course, we’re always scanning categories. There’s lots of – we’re probably not going to do something that is directly competitive with our current categories or franchisees – but [there’s] a lot of interesting categories outside of that. We’re always looking at different spaces. The Mediterranean food space is interesting. There’s lots of interesting categories out there that we’re studying.”
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