By Mark Kalinowski
Published on August 1, 2019 at 12:00 AM
Earlier today, Yum Brands (YUM; Buy) reported Q2 adjusted EPS of $0.93, topping our $0.89 forecast and sell-side consensus of $0.87. Yum’s updating of its fair value of its investment in Grubhub (GRUB; Not Rated) added $0.06 to Q2 EPS, but we’d also note that the Q2 adjusted tax rate of 23.7% hampered EPS by $0.03 according to our math relative to our 20.6% projection (and consensus of 20.6%). Second-quarter restaurant-level margins for company-owned stores matched our forecast.
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By Mark Kalinowski
Published on July 8, 2019 at 12:00 AM
With third-party delivery aggregators continuing to grow, providing additional convenience to the consumer, we decided to look at various quarterly data provided by Grubhub (GRUB; Not Rated), correlating these data sets with various sectors’ same-store sales (for U.S. chain restaurants). To do this, we used six different Kalinowski Restaurant Industry Index sector indices, which are sorted by brand type and based on the weighted-average components from 48 different publiclytraded restaurant concepts. (The weightings are based on each concept’s 2018 U.S. systemwide sales, as measured by Technomic.)
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By Mark Kalinowski
Published on May 1, 2019 at 12:00 AM
Earlier today, Yum Brands (YUM; Buy) reported Q1 adjusted EPS of $0.82, surpassing our $0.72 forecast (which had incorporated an anticipated -$0.09 hit from markto-market of Yum’s investment in GrubHub [GRUB; Not Rated]) and the $0.81 consensus number (likely not apples-to-apples with our forecast). Yum notes that “We reflected the change in fair value of our investment in Grubhub by recording $20 million of pre-tax investment expense, resulting in a negative ($0.05) impact in EPS.”
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