For today’s bulletin, we take a look at fast food giant Yum! Brands. We also provide a link to download a FREE STOCK REPORT on the company.
VALUATION WATCH: Overvalued stocks now make up 58.97% of our stocks assigned a valuation and 23.39% of those equities are calculated to be overvalued by 20% or more. Thirteen sectors are calculated to be overvalued.
Yum! Brands, Inc. (YUM) is the world’s largest restaurant company in terms of system units with nearly 38,000 restaurants in over 120 countries and territories. Their brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories. The Yum! system includes four operating segments: U.S., International (Yum! Restaurants International), China and India Divisions.
Yum! today reported results for the third quarter ended September 30, 2017. Third-quarter GAAP EPS was $1.18, an increase of 115%. Third-quarter EPS excluding Special Items was $0.68, an increase of 22%. Expected EPS was $0.67/share. Sales came in at $1.44 billion versus the estimate of $1.39 billion. Worldwide system sales grew 6%, with KFC at 7%, Taco Bell at 6% and Pizza Hut at 3%.
Greg Creed, CEO of YUM! Brands, noted the following about the latest results
I’m pleased to report another strong quarter with 11% core operating profit growth and 22% EPS growth excluding special items, as a result of the continued focus on our four key growth drivers. We are maintaining our full-year 2017 guidance and remain on-track with our multi-year transformation strategy. As we celebrate both our 1 st anniversary from the spin- off of Yum China and our 20 th anniversary as an independent company, I am proud of our accomplishments. I’m especially proud of our ability to leverage our culture to rapidly transform to a more focused, more franchised and more efficient company which delivers more growth to our shareholders.
The big contributor here were sales at KFC–the Colonel would approve. Overseas sales showed stronger growth than the US domestic market. As of this writing, shares are up @8% and are at an historic high.
For now, ValuEngine continues its HOLD recommendation on YUM! BRANDS INC for 2017-11-01. Based on the information we have gathered and our resulting research, we feel that YUM! BRANDS INC has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Price Sales Ratio.
You can download a free copy of detailed report on Yum! Brands, Inc. (YUM) from the link below.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 74.34 | 0.04% |
| 3-Month | 74.56 | 0.33% |
| 6-Month | 75.24 | 1.25% |
| 1-Year | 74.69 | 0.51% |
| 2-Year | 75.52 | 1.62% |
| 3-Year | 74.70 | 0.53% |
| Valuation & Rankings | |||
| Valuation | 9.59% overvalued | Valuation Rank(?) | 41 |
| 1-M Forecast Return | 0.04% | 1-M Forecast Return Rank | 54 |
| 12-M Return | 22.44% | Momentum Rank(?) | 62 |
| Sharpe Ratio | 0.05 | Sharpe Ratio Rank(?) | 51 |
| 5-Y Avg Annual Return | 1.20% | 5-Y Avg Annual Rtn Rank | 51 |
| Volatility | 24.26% | Volatility Rank(?) | 61 |
| Expected EPS Growth | 10.94% | EPS Growth Rank(?) | 39 |
| Market Cap (billions) | 32.51 | Size Rank | 96 |
| Trailing P/E Ratio | 26.67 | Trailing P/E Rank(?) | 50 |
| Forward P/E Ratio | 24.04 | Forward P/E Ratio Rank | 24 |
| PEG Ratio | 2.44 | PEG Ratio Rank | 18 |
| Price/Sales | 3.96 | Price/Sales Rank(?) | 28 |
| Market/Book | n/a | Market/Book Rank(?) | n/a |
| Beta | 0.67 | Beta Rank | 56 |
| Alpha | -0.28 | Alpha Rank | 20 |
DOWNLOAD A FREE SAMPLE OF OUR YUM BRANDS (YUM) REPORT BY CLICKING HERE
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