Earnings Preview: Yum! Brands may report tough comps in the U.S. for Q3
Yum! Brands (YUM) is expected to report Q3 earnings after the market close on Tuesday, October 6 with a conference call scheduled for Wednesday at 9:15 am ET. Analysts are looking for a profit of 58c on revenue of $2.79B. The consensus range is 52c-62c for EPS, and revenue of $2.67B-$2.93B, according to First Call. In July the company forecast 10% EPS growth for FY10. Then in September the company's board approved an 11% dividend increase bringing the dividend to 21c per share from 19c. Yum! also announced a $300M stock repurchase program. Citigroup believes the company's U.S. sales trends are moderating and that U.S. same-store sales for its three major concepts are softening. Potential effects of the softening may be worse than expected for U.S. results. The firm, which has a Hold rating on the stock, said SSS in the U.S. may fall 3.5% in Q3, as opposed to the prior view of a 1% decline. Citigroup also noted that fast food sales are often tied to unemployment, and said KFC's early success with grilled chicken may be waning. Yum! shares have declined about 10% since June, but Credit Suisse analyst Keigh Siegner believes shares could climb nearly 25% and trade at a premium to its peer group. Siegner cited Yum!'s international footprint and ongoing reallocation of capital. :theflyonthewall.com
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Yum! Brands reports Q4 EPS ex-items 50c vs. consensus of 48c
Reports Q4 sales $3.37B vs. consensus of $3.34B. SSS declined 5% for the full year and 8% in Q4 including a decline of 5% at Taco Bell, 8% at KFC and 12% at Pizza Hut. :theflyonthewall.com
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