What's Going On With KFC-Parent Yum! Brands Stock Today?
Portfolio Pulse from Akanksha Bakshi
Yum! Brands Inc (NYSE:YUM) reported a 1% year-on-year sales growth for Q4 fiscal 2023, totaling $2.04 billion, which missed the analyst consensus estimate of $2.11 billion. Worldwide system sales excluding foreign currency translation grew by 5%, with KFC at 7%, Taco Bell at 6%, and Pizza Hut at 1%. Same-store sales increased by 1% overall, with KFC up 2%, Taco Bell up 3%, and Pizza Hut down 2%. The company's adjusted EPS was $1.26, below the consensus of $1.40. YUM opened 1,853 new units during the quarter and paid off a $325 million debt maturity. The operating margin expanded to 29.9%, and operating income climbed 5.4% to $609 million. The company anticipates the recent purchase of 218 KFC outlets in the U.K. and Ireland to have a negligible effect on its 2024 EPS. YUM shares are trading higher by 3.16% at $131.29.
February 07, 2024 | 5:16 pm
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Yum! Brands reported lower-than-expected Q4 sales and EPS but showed growth in worldwide system sales and same-store sales. The company also highlighted its global expansion and paid off a significant debt maturity.
Despite missing sales and EPS estimates, Yum! Brands' stock price increased, likely due to positive investor sentiment around its global expansion, same-store sales growth, and financial health indicated by debt repayment and operating margin expansion. The anticipation of negligible impact from the acquisition of KFC outlets in the U.K. and Ireland on 2024 EPS also adds to the positive outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100