By Mark Kalinowski
Published on April 24, 2020 at 12:00 AM
With this report, we change our rating on Yum Brands (YUM; $85.61) to Neutral (from Buy). This change largely reflects the following factors: (1) currencies that may work against Yum’s earnings over the remainder of 2020, (2) other costs that may creep up in Q2, (3) the possibility of store closures hurting Q2 by more than the Street anticipates, (4) possible same-store sales issues at Taco Bell, and (5) YUM shares’ +55% rise off of its 52-week low, which has allowed it to come within less than 50 cents of our $86 target price (which we now move to “NA” with this report. We note the following:
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By Mark Kalinowski
Published on April 9, 2020 at 12:00 AM
With this report, we lower our full-fiscal 2020E EPS estimate for Starbucks (SBUX; Buy, $71.57) by -4 cents, to $1.91. (Our full-fiscal 2021E EPS estimate remains at $2.90.) The four-cent reduction in our fiscal 2020E EPS forecast reflects (1) Starbucks estimating that its adjusted EPS for fiscal Q2 (January-March) will be about $0.32 — we move up our fiscal Q2E projection by +1 cent to $0.32, and (2) lowering our fiscal Q3E EPS estimate by -5 cents, to $0.15.
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By Mark Kalinowski
Published on March 26, 2020 at 12:00 AM
We lower our worldwide aggregate same-store sales estimates for Yum Brands (YUM; Buy) as follows:
Q1E 2020: down by -8 percentage points to -8%
Q2E 2020: down by -23 percentage points to -23%
Q3E 2020: down by -15 percentage points to -13%
Q4E 2020: down by -7 percentage points to -5%
Full-year 2020E: down by -14 percentage points to -13%
Full-year 2021E: up by +5 percentage points to +7%
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