YUM Don’t Fear the Reaper

By Mark Kalinowski Published on November 5, 2018 at 12:00 AM

Breaking news! In addition to the Reaper Ranch Fries/Reaper Ranch Fries Supreme and Reaper Ranch Quesarito that we have written about previously (initially in our reports dated August 16th and October 21st, respectively), Taco Bell — owned by Yum Brands (YUM; Buy) — is also considering/testing a Reaper Ranch Fries Burrito (see following figure).

YUM (Post-Call) Spooky Good Taco Bell SameStore Sales Growth of +5%

By Mark Kalinowski Published on October 31, 2018 at 12:00 AM

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.

DIN (Post-Call) Dilly Dilly Let’s Celebrate at Applebee’s with $2 Bug Lights

By Mark Kalinowski Published on October 31, 2018 at 12:00 AM

Earlier today, Dine Brands (DIN; Buy) — the owner and franchisor of the Applebee’s and IHOP restaurant concepts — reported adjusted Q3 EPS of $1.53, matching our $1.53 forecast, and coming in slightly above the sell-side consensus number of $1.52, according to Consensus Metrix.