YUM Updating Our Forecasts Ahead of Yum Brands 8.1 Earnings Release

By Mark Kalinowski Published on July 22, 2019 at 12:00 AM

Ahead of Yum Brands’ (YUM; Buy) second-quarter earnings release scheduled for before the market open on Thursday, August 1st, we raise our Q2 EPS estimate by $0.01 to $0.89, placing us two cents above sell-side consensus according to Consensus Metrix. Our EPS estimate increase is driven by (1) an update to our Q2E Taco Bell same-store sales projection to +5% (which places us as tied for the high on the sell-side in this respect), from our prior +4%, and versus consensus of +3.7% (please keep in mind that Yum Brands does not report its same-store sales out past the decimal point), and (2) taking up our worldwide Q2E KFC same-store sales estimate to +4% (from +3%).

Correlating Grubhub Data and U.S. Restaurant Sectors Same-Store Sales Trends

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.)

YUM Some Potential Acquisition Candidates for Yum Brands

By Mark Kalinowski Published on June 10, 2019 at 12:00 AM

In April, Restaurant Business reported that “Yum [Brands], the parent company of Taco Bell, KFC and Pizza Hut, will ‘absolutely’ acquire another brand one day, [CEO Greg] Creed said. ‘In the future, other brands will want to become part of the Yum family,’ he said. ‘We’ll do it because these brands want to join us more than I want to pay some huge multiple.’”