Yum! Brands Earnings: Here’s Why the Stock is Up Now
Yum! Brands, Inc. (NYSE:YUM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.75%.
Yum! Brands, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 4.48% to $0.7 in the quarter versus EPS of $0.67 in the year-earlier quarter.
Revenue: Decreased 7.58% to $2.54 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Yum! Brands, Inc. reported adjusted EPS income of $0.7 per share. By that measure, the company beat the mean analyst estimate of $0.57. It missed the average revenue estimate of $3.04 billion.
Quoting Management: David C. Novak, Chairman and CEO, said, “While better than expected, the first quarter was extremely difficult for Yum! Brands. As anticipated, intense media attention surrounding poultry supply in China significantly impacted KFC sales and profit. Earnings per share declined 8% versus prior year, as our China Division operating profit fell 41%. Operating profit increased 19% at Yum! Restaurants International and 5% in our U.S. business.
Key Stats (on next page)…