What's Going On With Taco Bell-Parent Yum! Brands Stock Today?
Portfolio Pulse from Nabaparna Bhattacharya
Yum! Brands, Inc. (NYSE:YUM) shares fell after missing Q1 earnings and revenue forecasts. The company reported adjusted EPS of $1.15 versus the expected $1.20 and revenues of $1.598 billion against the anticipated $1.710 billion. Despite this, Yum! Brands saw a 6% unit growth with over 800 new openings, aiming to surpass 60,000 restaurants. Worldwide system sales grew 2%, with KFC and Taco Bell each growing at 4%, while Pizza Hut saw a 4% decline. The company also highlighted a record digital sales mix, exceeding 50% for the first time, and completed the acquisition of 218 KFC franchise restaurants in the U.K. and Ireland.
May 01, 2024 | 1:56 pm
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NEGATIVE IMPACT
Yum! Brands missed Q1 earnings and revenue expectations, with shares trading lower by 3.66%. The company reported a 6% unit growth and a record digital sales mix, exceeding 50% for the first time.
The immediate negative reaction in Yum! Brands' stock price is primarily due to the missed earnings and revenue forecasts for Q1. Despite positive notes on unit growth and digital sales, the financial underperformance has led to a short-term bearish outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100