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)…
Revenue decreased 38.96% from $4.15 billion in the previous quarter. EPS increased 70.73% from $0.41 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.09 to a profit $0.96. For the current year, the average estimate has moved down from a profit of $3.6 to a profit of $3.05 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)